Zacks Investment Research Downgrades Corning Inc. (GLW) to Hold
Corning Inc. (NYSE:GLW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “Corning is primarily a developer of advanced glass substrates for multiple markets. The company reported strong result in the third quarter with both earnings and revenues comfortably beating the Zacks Consensus Estimates. Revenue growth was positive driven by solid performance from the Display Technologies and Optical Communications segment. We believe the company remains focused on expanding its footprint in the automotive market, which will drive top-line growth. However, managemnt expects Specialty Materials segment to remain weak in the upcoming quarter due to lower-than-expected demand for mobile devices. Also important to note that several key end markets (tablets, mobile, etc) are underperforming in 2016 and the company has slipped into a net debt position.”
A number of other research firms have also recently commented on GLW. Goldman Sachs Group Inc. reissued a “buy” rating on shares of Corning in a research note on Friday, August 26th. Deutsche Bank AG boosted their target price on shares of Corning from $25.00 to $26.00 and gave the stock a “buy” rating in a research note on Wednesday, October 26th. Citigroup Inc. boosted their target price on shares of Corning from $23.00 to $26.00 and gave the stock a “buy” rating in a research note on Friday, August 26th. Vetr upgraded shares of Corning from a “sell” rating to a “buy” rating and set a $26.00 price target on the stock in a research report on Tuesday, November 15th. Finally, Bank of America Corp. restated a “sell” rating and set a $17.50 price target on shares of Corning in a research report on Wednesday, September 21st. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and seven have assigned a buy rating to the company’s stock. Corning presently has a consensus rating of “Hold” and an average target price of $22.91.
Shares of Corning (NYSE:GLW) opened at 23.87 on Friday. Corning has a 52-week low of $16.13 and a 52-week high of $24.14. The company has a 50-day moving average of $23.35 and a 200-day moving average of $21.92. The stock has a market capitalization of $22.71 billion, a price-to-earnings ratio of 12.17 and a beta of 1.32.
Corning (NYSE:GLW) last released its earnings results on Tuesday, October 25th. The company reported $0.42 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.04. The business earned $2.51 billion during the quarter, compared to analysts’ expectations of $2.52 billion. Corning had a net margin of 25.66% and a return on equity of 10.11%. The company’s quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.34 earnings per share. Equities research analysts anticipate that Corning will post $1.49 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Investors of record on Thursday, November 17th will be paid a dividend of $0.135 per share. This represents a $0.54 annualized dividend and a yield of 2.26%. The ex-dividend date of this dividend is Tuesday, November 15th. Corning’s payout ratio is currently 27.84%.
In related news, CEO Wendell P. Weeks sold 204,750 shares of the company’s stock in a transaction that occurred on Wednesday, October 26th. The shares were sold at an average price of $23.07, for a total transaction of $4,723,582.50. Following the sale, the chief executive officer now directly owns 136,500 shares of the company’s stock, valued at approximately $3,149,055. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Martin J. Curran sold 54,416 shares of the company’s stock in a transaction that occurred on Wednesday, September 7th. The stock was sold at an average price of $22.87, for a total transaction of $1,244,493.92. Following the sale, the vice president now directly owns 32,115 shares in the company, valued at $734,470.05. The disclosure for this sale can be found here. Corporate insiders own 0.60% of the company’s stock.
Large investors have recently made changes to their positions in the company. HighPoint Advisor Group LLC increased its stake in shares of Corning by 5.7% in the third quarter. HighPoint Advisor Group LLC now owns 20,715 shares of the company’s stock worth $493,000 after buying an additional 1,114 shares in the last quarter. Piedmont Investment Advisors LLC purchased a new stake in shares of Corning during the third quarter worth approximately $5,235,000. Quantitative Systematic Strategies LLC purchased a new stake in shares of Corning during the third quarter worth approximately $2,476,000. J.P. Marvel Investment Advisors LLC increased its stake in shares of Corning by 6.3% in the third quarter. J.P. Marvel Investment Advisors LLC now owns 277,930 shares of the company’s stock worth $6,573,000 after buying an additional 16,425 shares in the last quarter. Finally, CORDA Investment Management LLC. purchased a new stake in shares of Corning during the third quarter worth approximately $1,076,000. 80.30% of the stock is currently owned by hedge funds and other institutional investors.
Corning Incorporated (Corning) is engaged in the manufacture of specialty glass and ceramics. The Company operates in five segments: Display Technologies, which manufactures glass substrates; Optical Communications, which is engaged in providing optical solutions; Environmental Technologies, which manufactures ceramic substrates and filter products; Specialty Materials, which manufactures products that provide over 150 material formulations for glass, glass ceramics and fluoride crystals, and Life Sciences segment, which is a developer, manufacturer and supplier of scientific laboratory products.
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