nLight (NASDAQ:LASR) Shares Gap Up Following Earnings Beat

nLight (NASDAQ:LASR) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $29.34, but opened at $36.88. nLight shares last traded at $36.4620, with a volume of 322,149 shares.

The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.05 by $0.11. The company had revenue of $73.76 million for the quarter, compared to the consensus estimate of $68.16 million. nLight had a negative net margin of 4.02% and a negative return on equity of 2.83%. The company’s revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.08 EPS.

More nLight News

Here are the key news stories impacting nLight this week:

• Positive Sentiment: Q3 earnings were $0.16 per share, ahead of analyst estimates of roughly $0.05–$0.06 and up from $0.08 a year earlier. Revenue rose 10.5% year over year to $73.76 million, exceeding the $68.16 million consensus estimate. Zacks earnings report
• Positive Sentiment: Management said revenue came in above the high end of guidance, with record product gross margins and strong adjusted EBITDA. These results indicate solid execution despite operational headwinds. nLIGHT Q3 results
• Negative Sentiment: nLIGHT still faces supply constraints, which could limit its ability to fulfill demand or sustain growth. The company also reported a negative net margin and negative return on equity, underscoring that profitability remains a concern despite the quarterly earnings beat.

Analysts Set New Price Targets

A number of brokerages have issued reports on LASR. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of nLight in a research note on Thursday, October 15th. Zacks Research cut shares of nLight from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Craig Hallum upped their target price on shares of nLight from $80.00 to $100.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Needham & Company LLC initiated coverage on nLight in a research note on Tuesday. They issued a “buy” rating and a $50.00 price target on the stock. Finally, Wall Street Zen cut nLight from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $82.06.

Insider Buying and Selling at nLight

In related news, CAO James Nias sold 1,025 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $40.69, for a total transaction of $41,707.25. Following the sale, the chief accounting officer directly owned 96,596 shares in the company, valued at $3,930,491.24. This trade represents a 1.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Geoffrey Moore sold 4,452 shares of the business’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $34.57, for a total transaction of $153,905.64. Following the completion of the sale, the director directly owned 81,265 shares in the company, valued at $2,809,331.05. This represents a 5.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 621,149 shares of company stock valued at $27,153,700 over the last quarter. 3.10% of the stock is currently owned by corporate insiders.

Institutional Trading of nLight

Institutional investors have recently modified their holdings of the company. Bank of America Corp DE acquired a new stake in shares of nLight in the second quarter valued at approximately $8,938,000. Amundi acquired a new position in nLight during the first quarter worth $1,023,000. Tidal Investments LLC boosted its holdings in nLight by 2,995.5% during the second quarter. Tidal Investments LLC now owns 406,624 shares of the company’s stock worth $28,309,000 after purchasing an additional 393,488 shares during the last quarter. Rice Hall James & Associates LLC acquired a new position in nLight during the second quarter worth $3,740,000. Finally, Lazard Asset Management LLC bought a new position in nLight in the first quarter valued at $1,847,000. 83.88% of the stock is currently owned by institutional investors.

nLight Price Performance

The firm has a market cap of $2.12 billion, a P/E ratio of -147.01 and a beta of 2.46. The business’s 50-day moving average is $38.62 and its two-hundred day moving average is $57.25.

nLight Company Profile

nLight, Inc (NASDAQ: LASR) develops and manufactures semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense, and other specialized applications. Its products are designed to deliver high optical power, precision and reliability for uses such as materials processing, metal cutting and welding, additive manufacturing, and directed-energy systems.

The company offers a range of laser components and systems, including high-power diode lasers, fiber lasers, and related optical and beam-delivery technologies.