IPG Photonics (NASDAQ:IPGP) Updates Q2 Earnings Guidance

IPG Photonics (NASDAQ:IPGP) issued an update on its second quarter earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $0.30-0.60 for the period, compared to the consensus estimate of $0.68. The company issued revenue guidance of $240-270 million, compared to the consensus revenue estimate of $273.45 million.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Citigroup downgraded IPG Photonics from a neutral rating to a sell rating and dropped their price objective for the company from $111.00 to $74.00 in a research note on Thursday, February 15th. Stifel Nicolaus cut their price target on IPG Photonics from $130.00 to $115.00 and set a buy rating for the company in a research note on Wednesday, February 14th. StockNews.com cut shares of IPG Photonics from a buy rating to a hold rating in a research note on Saturday, February 17th. Finally, Seaport Res Ptn reaffirmed a buy rating on shares of IPG Photonics in a report on Thursday, January 25th. One analyst has rated the stock with a sell rating, one has assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, IPG Photonics currently has a consensus rating of Moderate Buy and an average price target of $117.20.

IPG Photonics Price Performance

IPG Photonics stock opened at $88.58 on Tuesday. The firm’s 50-day moving average is $87.77 and its two-hundred day moving average is $94.21. The stock has a market capitalization of $4.08 billion, a P/E ratio of 19.17, a P/E/G ratio of 17.53 and a beta of 1.19. IPG Photonics has a 12-month low of $83.00 and a 12-month high of $141.85.

IPG Photonics (NASDAQ:IPGP) last released its earnings results on Tuesday, February 13th. The semiconductor company reported $0.89 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.06). IPG Photonics had a return on equity of 9.18% and a net margin of 17.00%. The firm had revenue of $298.89 million during the quarter, compared to analysts’ expectations of $287.03 million. During the same period in the previous year, the firm posted ($1.91) earnings per share. The firm’s revenue was down 10.4% on a year-over-year basis. As a group, analysts forecast that IPG Photonics will post 3.23 EPS for the current year.

IPG Photonics declared that its board has authorized a stock buyback program on Tuesday, February 13th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 7.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, major shareholder Valentin Gapontsev Trust I sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, March 25th. The shares were sold at an average price of $89.56, for a total value of $895,600.00. Following the sale, the insider now directly owns 7,209,599 shares of the company’s stock, valued at $645,691,686.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last ninety days, insiders have sold 29,000 shares of company stock valued at $2,525,140. Insiders own 33.50% of the company’s stock.

IPG Photonics Company Profile

IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. Its laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories.