Zacks Investment Research Lowers II-VI (IIVI) to Sell

Zacks Investment Research downgraded shares of II-VI (NASDAQ:IIVI) from a hold rating to a sell rating in a research note published on Wednesday morning.

According to Zacks, “II-VI Incorporated designs, manufactures and markets optical and opto-electronic components, devices and materials for infrared, near-infrared, visible light, x-ray and gamma ray instrumentation. The Company’s infrared optics business manufactures optical and opto-electronic components sold under the II-VI brand name and used primarily in CO2 lasers. The Company’s near-infrared optics business manufactures near-infrared & visible light products for industrial, scientific, military & medical instruments and laser gain materials and products for solid-state YAG and YLF lasers at the Company’s VLOC subsidiary. The Company’s military infrared optics business manufactures infrared products for military applications under the Exotic Electro-Optics brand name. “

Several other research firms have also issued reports on IIVI. B. Riley lowered shares of II-VI from a buy rating to a neutral rating and set a $54.00 target price for the company. in a research note on Tuesday, September 4th. Deutsche Bank began coverage on shares of II-VI in a research note on Monday, August 27th. They issued a buy rating and a $58.00 target price for the company. BidaskClub upgraded shares of II-VI from a sell rating to a hold rating in a research note on Thursday, August 23rd. Morgan Stanley set a $48.00 target price on shares of II-VI and gave the stock a hold rating in a research note on Wednesday, August 8th. Finally, Cowen reiterated a buy rating and issued a $64.00 target price on shares of II-VI in a research note on Wednesday, August 8th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and ten have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $53.69.

Shares of NASDAQ IIVI traded up $0.68 during trading on Wednesday, hitting $45.24. The stock had a trading volume of 869,582 shares, compared to its average volume of 754,552. II-VI has a 12 month low of $34.88 and a 12 month high of $53.08. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.22 and a quick ratio of 2.17. The firm has a market cap of $2.37 billion, a price-to-earnings ratio of 26.30, a PEG ratio of 1.19 and a beta of 0.66.

II-VI (NASDAQ:IIVI) last posted its earnings results on Thursday, November 1st. The scientific and technical instruments company reported $0.56 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.56. II-VI had a net margin of 7.59% and a return on equity of 10.09%. The firm had revenue of $314.40 million during the quarter, compared to analyst estimates of $310.92 million. During the same quarter in the prior year, the business posted $0.32 EPS. The business’s revenue was up 20.2% compared to the same quarter last year. On average, research analysts anticipate that II-VI will post 1.84 EPS for the current fiscal year.

In related news, CFO Mary Jane Raymond sold 4,000 shares of the stock in a transaction dated Friday, August 10th. The shares were sold at an average price of $44.88, for a total transaction of $179,520.00. Following the completion of the transaction, the chief financial officer now owns 47,368 shares in the company, valued at $2,125,875.84. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, VP David G. Wagner sold 4,833 shares of the stock in a transaction dated Tuesday, September 25th. The shares were sold at an average price of $49.00, for a total transaction of $236,817.00. Following the transaction, the vice president now owns 65,211 shares of the company’s stock, valued at approximately $3,195,339. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 87,624 shares of company stock valued at $4,063,820. 4.00% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Ontario Teachers Pension Plan Board bought a new position in II-VI during the second quarter valued at about $384,000. Schwab Charles Investment Management Inc. lifted its holdings in II-VI by 6.1% during the second quarter. Schwab Charles Investment Management Inc. now owns 380,920 shares of the scientific and technical instruments company’s stock valued at $16,551,000 after purchasing an additional 22,007 shares during the last quarter. Russell Investments Group Ltd. lifted its holdings in II-VI by 6.6% during the first quarter. Russell Investments Group Ltd. now owns 19,129 shares of the scientific and technical instruments company’s stock valued at $782,000 after purchasing an additional 1,185 shares during the last quarter. Private Advisor Group LLC purchased a new stake in II-VI during the second quarter valued at about $455,000. Finally, Divisar Capital Management LLC lifted its holdings in II-VI by 46.9% during the second quarter. Divisar Capital Management LLC now owns 197,469 shares of the scientific and technical instruments company’s stock valued at $8,580,000 after purchasing an additional 63,000 shares during the last quarter. Institutional investors own 92.64% of the company’s stock.

About II-VI

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide. The company operates in three segments: II-VI Laser Solutions, II-VI Photonics, and II-VI Performance Products. The II-VI Laser Solutions segment offers optical and electro-optical components and materials primarily used in high-power CO2 lasers; fiber-delivered beam delivery systems, and processing tools and direct diode lasers for industrial lasers; direct diode laser modules, sub-systems, and systems; super-hard materials processing laser systems; and compound semiconductor epitaxial and gallium arsenide wafers.

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