Needham & Company LLC Reaffirms Hold Rating for Acacia Communications (ACIA)

Acacia Communications (NASDAQ:ACIA)‘s stock had its “hold” rating restated by Needham & Company LLC in a research report issued to clients and investors on Friday.

The analysts wrote, “Acacia delivered solid CY4Q18 results and better than expected CY1Q19 guidance. The strong outlook reflects increasing traction with new products including and silicon PIC solutions, customer diversification with a growing number of 10% customers and the full recovery of shipments to ZTE in CY4Q. We believe ACIA’s new products (CFP2 DCO, AC1200 and silicon PIC) will all post meaningful Y/Y revenue growth and drive margin expansion in 2019. However, given ACIA shares are trading near $50 (or an EV/E of ~18.3x our CY20 NG EPS est.) in the pre-market, we believe shares are fully valued and maintain the Hold rating.””

Several other equities research analysts have also recently commented on ACIA. MKM Partners increased their price target on Acacia Communications from $40.00 to $42.00 and gave the company a “neutral” rating in a report on Friday, November 2nd. ValuEngine raised Acacia Communications from a “hold” rating to a “buy” rating in a report on Friday, November 2nd. Rosenblatt Securities set a $51.00 price target on Acacia Communications and gave the company a “buy” rating in a report on Saturday, November 3rd. Citigroup increased their price objective on Acacia Communications to $60.00 and gave the stock a “buy” rating in a research report on Monday, November 5th. Finally, Deutsche Bank increased their price objective on Acacia Communications from $45.00 to $60.00 and gave the stock a “buy” rating in a research report on Monday, November 5th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and nine have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $46.13.

NASDAQ:ACIA opened at $47.17 on Friday. Acacia Communications has a one year low of $24.72 and a one year high of $48.29. The company has a market capitalization of $1.88 billion, a P/E ratio of 39.64, a P/E/G ratio of 4.88 and a beta of 1.65.

Acacia Communications (NASDAQ:ACIA) last posted its quarterly earnings results on Thursday, February 21st. The technology company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.35 by $0.06. Acacia Communications had a positive return on equity of 2.11% and a negative net margin of 7.68%. The firm had revenue of $107.10 million during the quarter, compared to analysts’ expectations of $102.84 million. During the same quarter last year, the firm earned $0.27 earnings per share. The business’s revenue for the quarter was up 23.7% on a year-over-year basis. Research analysts forecast that Acacia Communications will post 0.09 EPS for the current year.

In other news, CEO Murugesan Shanmugaraj sold 4,132 shares of the firm’s stock in a transaction on Monday, February 4th. The stock was sold at an average price of $42.34, for a total transaction of $174,948.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Bhupendra C. Shah sold 1,100 shares of the firm’s stock in a transaction on Thursday, February 14th. The stock was sold at an average price of $43.38, for a total value of $47,718.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 62,831 shares of company stock valued at $2,621,230. Company insiders own 33.20% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Legal & General Group Plc boosted its position in shares of Acacia Communications by 6.1% during the fourth quarter. Legal & General Group Plc now owns 10,014 shares of the technology company’s stock worth $380,000 after buying an additional 576 shares during the period. State Board of Administration of Florida Retirement System boosted its holdings in Acacia Communications by 6.9% in the fourth quarter. State Board of Administration of Florida Retirement System now owns 10,641 shares of the technology company’s stock valued at $404,000 after purchasing an additional 687 shares during the period. PNC Financial Services Group Inc. boosted its holdings in Acacia Communications by 31.6% in the third quarter. PNC Financial Services Group Inc. now owns 6,240 shares of the technology company’s stock valued at $258,000 after purchasing an additional 1,500 shares during the period. Great West Life Assurance Co. Can boosted its holdings in Acacia Communications by 100.6% in the fourth quarter. Great West Life Assurance Co. Can now owns 3,611 shares of the technology company’s stock valued at $132,000 after purchasing an additional 1,811 shares during the period. Finally, Teachers Advisors LLC boosted its holdings in Acacia Communications by 3.7% in the third quarter. Teachers Advisors LLC now owns 54,238 shares of the technology company’s stock valued at $2,244,000 after purchasing an additional 1,919 shares during the period. Institutional investors and hedge funds own 75.77% of the company’s stock.

Acacia Communications Company Profile

Acacia Communications, Inc develops, manufactures, and sells high-speed coherent optical interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. Its products include a series of low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second for use in long-haul, metro, and inter-data center markets.

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Analyst Recommendations for Acacia Communications (NASDAQ:ACIA)

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