Peeling Back The Layers: Exploring Harmonic Through Analyst Insights

Harmonic Inc. -0.58%

Harmonic Inc.

HLIT

10.27

-0.58%

Harmonic (NASDAQ:HLIT) has been analyzed by 7 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 6 1 0 0 0
Last 30D 1 0 0 0 0
1M Ago 3 0 0 0 0
2M Ago 2 1 0 0 0
3M Ago 0 0 0 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $17.29, a high estimate of $19.00, and a low estimate of $14.00. Witnessing a positive shift, the current average has risen by 4.79% from the previous average price target of $16.50.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Harmonic among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Steve Frankel Rosenblatt Maintains Buy $18.00 -
Ryan Koontz Needham Maintains Buy $18.00 -
Simon Leopold Raymond James Raises Strong Buy $19.00 $15.00
Simon Leopold Raymond James Raises Strong Buy $19.00 $15.00
Tim Long Barclays Lowers Overweight $14.00 $20.00
Simon Leopold Raymond James Lowers Strong Buy $15.00 $16.00
Ryan Koontz Needham Maintains Buy $18.00 -

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Harmonic. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Harmonic compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Harmonic's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Harmonic's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Harmonic analyst ratings.

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About Harmonic

Harmonic Inc designs and manufactures video infrastructure products and system solutions to deliver video and broadband services to consumer devices. The firm operates in two segments: Video, which sells video processing, production, and playout solutions to cable operators and satellite and telecommunications providers; and Broadband which sells broadband access solutions and related services. Majority of the revenue generated from the company is from United States.

Key Indicators: Harmonic's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Harmonic's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -18.32% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -5.11%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Harmonic's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -1.9%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Harmonic's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.95%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Harmonic's debt-to-equity ratio is below the industry average. With a ratio of 0.46, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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