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SAN JOSE, Calif.—Daniel T. Whalen, a director at Harmonic Inc . (NASDAQ:HLIT), recently acquired 1,000 shares of the company’s common stock. The purchase, made on February 25, 2025, was completed at a price of $9.99 per share, totaling $9,990. The timing is notable as the stock has declined nearly 30% over the past six months, and InvestingPro analysis suggests the company is currently undervalued.
Following this transaction, Whalen holds a total of 9,840 shares in the company. The acquisition was executed as an open market purchase, as noted in the SEC filing. Analyst price targets for Harmonic range from $10 to $14 per share, according to InvestingPro data.
Harmonic Inc., headquartered in San Jose, California, operates in the radio and TV broadcasting and communications equipment industry. The company, valued at $1.18 billion, maintains strong financial health with liquid assets exceeding short-term obligations and a current ratio of 2.18.
In other recent news, Harmonic Inc. reported its fourth-quarter results, showcasing a 33% year-over-year revenue increase and adjusted earnings per share (EPS) of $0.45, surpassing analyst estimates of $0.37. Despite this strong performance, the company’s guidance for 2025 fell short of expectations, forecasting Q1 EPS of $0.02-$0.08 on revenue of $120-$135 million, compared to analyst projections of $0.12 EPS and $149.39 million in revenue. The full-year 2025 guidance also disappointed, with EPS of $0.43-$0.68 on revenue of $585-$645 million, below the consensus estimates of $0.87 EPS and $720.73 million in revenue. In response, Harmonic’s shares experienced a significant decline.
Jefferies maintained a Hold rating for Harmonic with a price target of $10, citing industry headwinds and delays in customer technology upgrades as concerns. Meanwhile, Rosenblatt Securities cut its price target for Harmonic to $12 from $16 but maintained a Buy rating, suggesting that the company’s guidance might outperform management’s projections. Needham also lowered its price target to $14 from $18 while retaining a Buy rating, noting the potential benefits of the transition to DOCSIS 4 Unified (D4U) for Harmonic’s market position.
Harmonic’s management attributed the weak guidance to shifts in customer deployment timing as operators transition to Unified DOCSIS 4.0. Despite the challenges, the company authorized a new $200 million share repurchase program, doubling its previous initiative. Harmonic ended the quarter with $101.5 million in cash, up from $84.3 million a year ago, reflecting its strong financial position amidst the current market conditions.
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