EMCORE (EMKR) Stock Price Down 15.5% on Disappointing Earnings

EMCORE Corporation (NASDAQ:EMKR) shares fell 15.5% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $5.80 and last traded at $6.25. 2,284,100 shares changed hands during mid-day trading, an increase of 597% from the average session volume of 327,848 shares. The stock had previously closed at $7.40.

The semiconductor company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.02). The firm had revenue of $29.20 million for the quarter, compared to analyst estimates of $30.29 million. EMCORE had a return on equity of 9.45% and a net margin of 6.70%. The company’s quarterly revenue was up 14.1% compared to the same quarter last year. During the same period last year, the firm earned $0.10 EPS.

Several research firms have recently issued reports on EMKR. Northland Securities downgraded EMCORE from an “outperform” rating to a “market perform” rating in a research note on Tuesday. B. Riley reaffirmed a “neutral” rating and set a $8.75 price target (down previously from $10.50) on shares of EMCORE in a research note on Friday, December 1st. Finally, Lake Street Capital reiterated a “buy” rating and set a $10.00 price objective on shares of EMCORE in a research report on Wednesday. One analyst has rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company’s stock. EMCORE presently has a consensus rating of “Hold” and a consensus price target of $9.13.

In related news, CEO Jeffrey Rittichier sold 9,189 shares of EMCORE stock in a transaction dated Thursday, October 19th. The stock was sold at an average price of $8.45, for a total transaction of $77,647.05. Following the completion of the sale, the chief executive officer now owns 288,505 shares in the company, valued at approximately $2,437,867.25. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 0.77% of the company’s stock.

A number of institutional investors have recently bought and sold shares of EMKR. Vanguard Group Inc. increased its position in EMCORE by 6.0% during the 1st quarter. Vanguard Group Inc. now owns 1,107,447 shares of the semiconductor company’s stock worth $9,967,000 after purchasing an additional 63,020 shares in the last quarter. Geode Capital Management LLC grew its holdings in EMCORE by 3.6% in the 1st quarter. Geode Capital Management LLC now owns 212,423 shares of the semiconductor company’s stock valued at $1,911,000 after buying an additional 7,376 shares during the period. Schwab Charles Investment Management Inc. grew its holdings in EMCORE by 47.5% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 50,590 shares of the semiconductor company’s stock valued at $456,000 after buying an additional 16,300 shares during the period. Goldman Sachs Group Inc. grew its holdings in EMCORE by 73.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 39,548 shares of the semiconductor company’s stock valued at $356,000 after buying an additional 16,774 shares during the period. Finally, Rhumbline Advisers grew its holdings in EMCORE by 2.6% in the 2nd quarter. Rhumbline Advisers now owns 32,677 shares of the semiconductor company’s stock valued at $348,000 after buying an additional 825 shares during the period. Hedge funds and other institutional investors own 78.34% of the company’s stock.

The stock has a market cap of $167.99, a price-to-earnings ratio of 16.03 and a beta of 0.45.

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About EMCORE

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment.

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