Corning Inc. (NYSE:GLW) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Corning is primarily a developer of advanced glass substrates for multiple markets. The company saw the seasonal strength in Optical Communications in the quarter. These factors along with new and pipeline products, management’s recently announced capital allocation plans are positives. We believe the company remains focus on expanding its footprint in the automotive market, which will drive top-line growth. However, managemnt expects Specialty Materials segment to remain weak in the upcoming quarter due to lower-than-expected demand for mobile devices. Also important to note that several key end markets (tablets, mobile, etc) are underperforming in 2016 and the company has slipped into a net debt position.”
A number of other equities analysts also recently issued reports on the stock. Susquehanna reiterated a “positive” rating and set a $27.00 price objective (up from $25.00) on shares of Corning in a research note on Wednesday, September 28th. Bank of America Corp. reiterated a “sell” rating and set a $17.50 price objective on shares of Corning in a research note on Wednesday, September 21st. Goldman Sachs Group Inc. reiterated a “buy” rating on shares of Corning in a research note on Friday, August 26th. Citigroup Inc. increased their price objective on shares of Corning from $23.00 to $26.00 and gave the company a “buy” rating in a research note on Friday, August 26th. Finally, Vetr downgraded shares of Corning from a “hold” rating to a “sell” rating and set a $21.30 price objective on the stock. in a research note on Thursday, July 28th. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of C$21.98.
Shares of Corning (NYSE:GLW) opened at 23.65 on Monday. The stock has a market capitalization of $24.52 billion, a price-to-earnings ratio of 13.03 and a beta of 1.33. The firm’s 50-day moving average is $22.83 and its 200-day moving average is $21.09. Corning has a 52 week low of $16.13 and a 52 week high of $23.81.
Corning (NYSE:GLW) last released its quarterly earnings data on Wednesday, July 27th. The company reported $0.37 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.32 by $0.05. Corning had a net margin of 25.53% and a return on equity of 9.65%. The firm had revenue of $2.36 billion for the quarter, compared to the consensus estimate of $2.38 billion. During the same period last year, the firm earned $0.38 earnings per share. The company’s quarterly revenue was up .7% on a year-over-year basis. Analysts forecast that Corning will post $1.43 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Wednesday, August 31st were paid a dividend of $0.135 per share. The ex-dividend date was Monday, August 29th. This represents a $0.54 annualized dividend and a dividend yield of 2.28%. Corning’s payout ratio is currently 29.51%.
In other news, VP Eric S. Musser sold 56,853 shares of Corning stock in a transaction on Monday, August 1st. The shares were sold at an average price of C$22.37, for a total transaction of C$1,271,801.61. Following the completion of the sale, the vice president now directly owns 25,693 shares in the company, valued at C$574,752.41. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Wendell P. Weeks sold 68,250 shares of the firm’s stock in a transaction on Tuesday, August 2nd. The stock was sold at an average price of C$22.21, for a total transaction of C$1,515,832.50. Following the transaction, the chief executive officer now directly owns 68,250 shares of the company’s stock, valued at approximately C$1,515,832.50. The disclosure for this sale can be found here. Insiders own 0.60% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Whittier Trust Co. boosted its position in shares of Corning by 2.3% in the second quarter. Whittier Trust Co. now owns 6,954 shares of the company’s stock valued at $142,000 after buying an additional 154 shares during the period. First Manhattan Co. boosted its position in shares of Corning by 2.7% in the second quarter. First Manhattan Co. now owns 7,622 shares of the company’s stock valued at $156,000 after buying an additional 200 shares during the period. Zions Bancorporation boosted its position in shares of Corning by 439.6% in the first quarter. Zions Bancorporation now owns 7,976 shares of the company’s stock valued at $164,000 after buying an additional 6,498 shares during the period. Invictus RG boosted its position in shares of Corning by 6.0% in the first quarter. Invictus RG now owns 8,787 shares of the company’s stock valued at $184,000 after buying an additional 495 shares during the period. Finally, Sunbelt Securities Inc. boosted its position in shares of Corning by 5.6% in the second quarter. Sunbelt Securities Inc. now owns 9,500 shares of the company’s stock valued at $195,000 after buying an additional 500 shares during the period. 73.63% of the stock is owned by hedge funds and other institutional investors.
Corning Company Profile
Corning Incorporated (Corning) is engaged in the manufacture of specialty glass and ceramics. The Company operates in five segments: Display Technologies, which manufactures glass substrates; Optical Communications, which is engaged in providing optical solutions; Environmental Technologies, which manufactures ceramic substrates and filter products; Specialty Materials, which manufactures products that provide over 150 material formulations for glass, glass ceramics and fluoride crystals, and Life Sciences segment, which is a developer, manufacturer and supplier of scientific laboratory products.
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