Oclaro, Inc. (NASDAQ:OCLR) had its price objective boosted by Jefferies Group LLC from $11.25 to $13.25 in a research note published on Thursday. The firm currently has a buy rating on the stock.
“Oclaro positively pre-announced FQ2 results largely on the strength of the 100G market, which aligns with our thesis on the name. We think that upside in the shares will be limited in the near-term given investor fears around CQ1 guidance, particularly in China. We believe that Olaro can continue to exceed investor expectations due to multiple positive secular drivers. Reiterate Buy. Positive FQ2 Pre-Announcement. FQ2 (Dec.) revenue is expected to be $153.5-154.0M, at the high end of the prior guidance of $146-154M (Street = $150.5M) due to the strength of products delivering speeds of 100G and beyond in the quarter. Blow-Out Margins. Gross margins are now expected to hit 40%, well above the 33-36% guidance provided in November and Consensus of 35%. Non-GAAP operating income is expected to total ~$36M (op margin of ~23%), well above the guidance range of $22-26M (Street = $24.5M; op margin of ~16%). We calculate this implies FQ2 EPS of $0.22, above our (and Consensus) $0.14 estimate.The beat was driven by solid execution”, richer than anticipated product mix, and F/X.”,” the firm’s analyst commented.
OCLR has been the subject of a number of other research reports. Zacks Investment Research lowered shares of Oclaro from a strong-buy rating to a hold rating in a research report on Wednesday, October 5th. MKM Partners restated a buy rating and issued a $10.00 price objective on shares of Oclaro in a research report on Friday, October 21st. Needham & Company LLC raised their price objective on shares of Oclaro from $10.00 to $11.00 and gave the company a strong-buy rating in a research report on Monday, October 31st. TheStreet lowered shares of Oclaro from a buy rating to a hold rating in a research report on Wednesday, November 2nd. Finally, Piper Jaffray Companies restated an overweight rating and issued a $10.50 price objective (up from $9.00) on shares of Oclaro in a research report on Friday, October 7th. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of Buy and an average target price of $10.80.
Oclaro (NASDAQ:OCLR) opened at 9.99 on Thursday. The company’s 50-day moving average is $8.84 and its 200-day moving average is $8.00. Oclaro has a 52-week low of $3.27 and a 52-week high of $10.19. The firm has a market capitalization of $1.66 billion, a PE ratio of 79.29 and a beta of 2.03.
Oclaro (NASDAQ:OCLR) last issued its earnings results on Tuesday, November 1st. The company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.04. The firm earned $135.50 million during the quarter, compared to analyst estimates of $131.65 million. Oclaro had a net margin of 3.39% and a return on equity of 14.48%. The company’s quarterly revenue was up 54.8% on a year-over-year basis. During the same quarter last year, the business earned ($0.02) earnings per share. Analysts forecast that Oclaro will post $0.60 EPS for the current fiscal year.
In other Oclaro news, insider Thomas Gordon Beck Mason sold 7,566 shares of Oclaro stock in a transaction that occurred on Tuesday, December 13th. The shares were sold at an average price of $8.35, for a total transaction of $63,176.10. Following the transaction, the insider now directly owns 253,338 shares of the company’s stock, valued at $2,115,372.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Lisa Paul sold 5,000 shares of Oclaro stock in a transaction that occurred on Thursday, December 1st. The stock was sold at an average price of $8.79, for a total transaction of $43,950.00. Following the transaction, the executive vice president now directly owns 207,474 shares in the company, valued at $1,823,696.46. The disclosure for this sale can be found here. Company insiders own 2.30% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Kopp Investment Advisors LLC increased its position in Oclaro by 4.4% in the second quarter. Kopp Investment Advisors LLC now owns 11,097,537 shares of the company’s stock valued at $54,156,000 after buying an additional 467,170 shares during the period. Whale Rock Capital Management LLC increased its position in Oclaro by 15.3% in the third quarter. Whale Rock Capital Management LLC now owns 6,685,632 shares of the company’s stock valued at $57,162,000 after buying an additional 887,656 shares during the period. Hood River Capital Management LLC increased its position in Oclaro by 8.1% in the second quarter. Hood River Capital Management LLC now owns 4,434,828 shares of the company’s stock valued at $21,642,000 after buying an additional 330,850 shares during the period. Vanguard Group Inc. increased its position in Oclaro by 13.1% in the second quarter. Vanguard Group Inc. now owns 3,839,748 shares of the company’s stock valued at $18,738,000 after buying an additional 443,754 shares during the period. Finally, Ameriprise Financial Inc. increased its position in Oclaro by 12.7% in the third quarter. Ameriprise Financial Inc. now owns 3,721,526 shares of the company’s stock valued at $31,819,000 after buying an additional 418,560 shares during the period. 61.89% of the stock is currently owned by hedge funds and other institutional investors.
Oclaro, Inc is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications.