Drilling Down Into NeoPhotonics Corporation (NPTN)

NeoPhotonics Corporation (NPTN) is an interesting player in the Technology space, with a focus on Semiconductor – Broad Line. The stock has been active on the tape, currently trading at $6.52, down from yesterday’s close by -3.98%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

NeoPhotonics Corporation (NPTN) currently trades with a market capitalization of $290.86 Million. That value represents a market adjusting for revenues that have been falling by -30.01 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$80.18 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.26 on a per share basis this quarter. Perhaps, that suggests something about why 1.54% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, NeoPhotonics Corporation recorded a 52-week high of $9.78. It is now trading 3.26% off that level. The stock is trading $6.33 its 50-day moving average by -0.19%. The stock carved out a 52-week low down at $4.56.

In recent action, NeoPhotonics Corporation (NPTN) has made a move of -8.56% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 22.09% with $39.42 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of NPTN.

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