Infinera Corporation (NASDAQ: INFN) stock fell -1.16% on Friday to $4.27 against a previous-day closing price of $4.32. With 3.79 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.47 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $4.3200 whereas the lowest price it dropped to was $4.1800. The 52-week range on INFN shows that it touched its highest point at $7.80 and its lowest point at $3.62 during that stretch. It currently has a 1-year price target of $6.70. Beta for the stock currently stands at 1.41.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of INFN was up-trending over the past week, with a rise of 1.43%, but this was up by 8.65% over a month. Three-month performance dropped to -13.56% while six-month performance fell -43.74%. The stock lost -19.28% in the past year, while it has lost -36.65% so far this year. A look at the trailing 12-month EPS for INFN yields -0.03 with Next year EPS estimates of 0.36. For the next quarter, that number is -0.01. This implies an EPS growth rate of 57.30% for this year and 191.20% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 23.20%.
Float and Shares Shorts:
At present, 225.92 million INFN shares are outstanding with a float of 223.46 million shares on hand for trading. On Aug 30, 2023, short shares totaled 43.35 million, which was 19.10% higher than short shares on Jul 30, 2023. In addition to Mr. David W. Heard as the firm’s CEO & Director, Dr. David F. Welch Ph.D. serves as its Co-Founder, Chief Innovation Officer & Director.
Through their ownership of 105.50% of INFN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.30% of INFN, in contrast to 39.10% held by mutual funds. Shares owned by individuals account for 17.54%. As the largest shareholder in INFN with 14.91% of the stake, Fidelity Management & Research Co holds 33,842,328 shares worth 33,842,328. A second-largest stockholder of INFN, Oaktree Capital Management LP, holds 25,175,384 shares, controlling over 11.09% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in INFN, holding 23,420,804 shares or 10.32% stake. With a 4.65% stake in INFN, the Fidelity Growth Company Fund is the largest stakeholder. A total of 10,555,702 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.57% of INFN stock, is the second-largest Mutual Fund holder. It holds 5,831,136 shares valued at 27.29 million. Vanguard Small Cap Index Fund holds 2.19% of the stake in INFN, owning 4,980,602 shares worth 23.31 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2023, INFN reported revenue of $357.99M and operating income of -$38.58M. The EBITDA in the recently reported quarter was -$20.86M and diluted EPS was -$0.26.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for INFN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With INFN analysts setting a high price target of $12.00 and a low target of $4.00, the average target price over the next 12 months is $6.70. Based on these targets, INFN could surge 181.03% to reach the target high and fall by -6.32% to reach the target low. Reaching the average price target will result in a growth of 56.91% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded INFN stock several times over the past three months with 10 Buys and 6 Sells. In these transactions, 46,290 shares were bought while 14,311 shares were sold. The number of buy transactions has increased to 59 while that of sell transactions has risen to 43 over the past year. The total number of shares bought during that period was 914,792 while 314,287 shares were sold.