Last Updated: 18 Sep 2024
Executive Summary
Harmonic Inc. (HLIT) is a leading provider of video delivery software, products, and services. The company has a strong financial position with a market capitalization of $1.56 billion and an EBITDA of $18.48 million. Harmonic's trailing P/E ratio of 28.02 is in line with industry peers, and its forward P/E ratio of 19.19 indicates potential for growth. The company's latest stock price of $13.59 is below its 52-week high of $15.31, suggesting a potential buying opportunity.
Company Overview
Harmonic Inc. is headquartered in San Jose, California. The company provides video delivery solutions for broadcasters, cable operators, content providers, and enterprises. Harmonic's products and services include video compression, encoding, transcoding, and streaming technologies. The company has a global presence with customers in over 100 countries.
Fundamental Analysis
Harmonic's financial performance has been mixed in recent quarters. The company's revenue declined slightly in the latest quarter, but its EPS grew by 13.46% year-over-year. Harmonic's profit margin is 10.2%, which is below the industry average. However, the company's return on assets and return on equity are both above average.
Technical Analysis
Harmonic's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is below 50, indicating that the stock is oversold.
Short Term Outlook
In the short term, Harmonic's stock price is likely to continue to trade sideways or lower. The company's financial performance has been mixed, and the technical indicators are bearish. However, Harmonic's stock is trading at a discount to its fair value, which could provide a buying opportunity for investors.
Long Term Outlook
In the long term, Harmonic's stock price is likely to rise. The company is a leader in the video delivery market, and its products and services are in high demand. Harmonic's financial position is strong, and the company has a track record of innovation.
Analyst Recommendations
Analysts are generally positive on Harmonic's stock. Two analysts have a "Strong Buy" rating on the stock, four have a "Buy" rating, and none have a "Hold," "Sell," or "Strong Sell" rating. The average analyst target price is $17.17, which represents a potential upside of 26.4% from the current stock price.
