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

Shares of nLight (NASDAQ:LASR) 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 for the quarter, beating the consensus estimate of $0.05 by $0.11. The company had revenue of $73.76 million during the quarter, compared to analysts’ expectations of $68.16 million. nLight had a negative return on equity of 2.83% and a negative net margin of 4.02%. nLight’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.08 EPS.

Key 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.

Analyst Upgrades and Downgrades

LASR has been the subject of a number of analyst reports. Needham & Company LLC started coverage on nLight in a research note on Tuesday. They issued a “buy” rating and a $50.00 price target for the company. Northcoast Research upgraded nLight from a “neutral” rating to a “buy” rating and set a $75.00 price objective on the stock in a research note on Wednesday, October 7th. UBS Group set a $90.00 price objective on nLight in a research note on Friday, July 10th. Zacks Research downgraded nLight from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Finally, Wall Street Zen downgraded shares of nLight from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. One investment 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 given a Sell rating to the stock. Based on data from MarketBeat, nLight presently has a consensus rating of “Moderate Buy” and an average price target of $82.06.

Insider Activity at nLight

In other news, CEO Scott Keeney sold 181,750 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $46.88, for a total value of $8,520,440.00. Following the transaction, the chief executive officer directly owned 2,185,039 shares of the company’s stock, valued at $102,434,628.32. This represents a 7.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Geoffrey Moore sold 4,452 shares of the firm’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $34.57, for a total transaction of $153,905.64. Following the sale, the director owned 81,265 shares of the company’s stock, valued at approximately $2,809,331.05. This represents a 5.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 621,149 shares of company stock valued at $27,153,700 in the last ninety days. Company insiders own 3.10% of the company’s stock.

Institutional Investors Weigh In On nLight

Several hedge funds have recently bought and sold shares of LASR. Bank of America Corp DE bought a new stake in shares of nLight during the second quarter worth approximately $8,938,000. Amundi bought a new position in shares of nLight during the first quarter worth approximately $1,023,000. Tidal Investments LLC increased its stake in shares of 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 period. Rice Hall James & Associates LLC bought a new position in shares of nLight during the second quarter worth approximately $3,740,000. Finally, Lazard Asset Management LLC acquired a new stake in nLight during the 1st quarter worth approximately $1,847,000. 83.88% of the stock is currently owned by institutional investors and hedge funds.

nLight Stock Performance

The firm has a market capitalization of $2.12 billion, a price-to-earnings ratio of -147.01 and a beta of 2.46. The company has a fifty day moving average of $38.62 and a two-hundred day moving average of $57.25.

About nLight

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.