HLIT stock touches 52-week low at $8.42 amid market challenges

Published 04/04/2025, 15:32
HLIT stock touches 52-week low at $8.42 amid market challenges

Harmonic Inc (NASDAQ:HLIT) stock has reached a 52-week low, dipping to $8.42, as the company faces a challenging market environment. According to InvestingPro data, technical indicators suggest the stock is in oversold territory, with a significant 33.4% decline year-to-date. This latest price level reflects a significant downturn from the previous year, with the stock experiencing a 1-year change of -35.94%. Despite the decline, the company maintains strong fundamentals with a healthy current ratio of 2.18 and operates with moderate debt levels. Investors are closely monitoring the company’s performance and market position, as the current valuation marks a critical point for the company’s financial outlook and future investment decisions. InvestingPro analysis indicates the stock is currently undervalued, with 12 additional exclusive insights available for subscribers.

In other recent news, Harmonic Inc. reported a strong fourth quarter with earnings per share (EPS) of $0.45, exceeding analyst estimates of $0.37, and revenue of $222.2 million, surpassing the consensus of $219.95 million. However, the company’s guidance for 2025 fell short, projecting EPS of $0.43-$0.68 on revenue of $585-$645 million, which was below analysts’ expectations. Harmonic attributed this to shifts in customer deployment timing as they transition to Unified DOCSIS 4.0 technology. Despite the weak forecast, Harmonic’s board approved a new $200 million share repurchase program.

Jefferies maintained a Hold rating on Harmonic with a price target of $10, citing industry headwinds and delays in technology upgrades by major clients like Comcast (NASDAQ:CMCSA) and Charter Communications (NASDAQ:CHTR). Rosenblatt Securities cut its price target for Harmonic from $16 to $12 but kept a Buy rating, suggesting that the company is not losing market share and may outperform its current projections. Needham also lowered its price target to $14 from $18 while maintaining a Buy rating, highlighting a 33% year-over-year revenue increase in the fourth quarter. Despite the challenges, analysts from Needham see potential benefits from Harmonic’s transition to DOCSIS 4 Unified (D4U) and believe there could be strong upside when industry spending rebounds.

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