Gains May Be On The Menu For II-VI Incorporated (NASDAQ: IIVI)


    Wellington Management Co. LLP recently announced the acquisition of new stake in II-VI Incorporated (NASDAQ:IIVI). The institutional investor has increased its shareholding in the Technology company by 11.69% to 10.44 million shares with purchase of 1.09 million shares. This fresh investment now brings its stake to 11.44% valued currently at $493.08 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.1 million to 8.23 million shares. And Fidelity Management & Research Co. has lifted its position by 159.19% or 4.75 million shares – to 7.73 million shares.

    With over 1.28 million II-VI Incorporated (IIVI) shares trading Thursday and a closing price of $52.26 on the day, the dollar volume was approximately $66.64 million. The shares have shown a positive weekly performance of 6.33% and its price on 08/05/20 lost nearly -0.32%. Currently, there are 91.08M common shares owned by the public and among those 88.17M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for IIVI have a consensus price objective of $52.43. The analysts have set the share’s price value over the next 12 months at a high of $69.00 and a low of $35.00 should the stock experience a downside. Incidentally, analysts’ outlook for the II-VI Incorporated stock is 2.20 for the next 12 months. The average price target is -0.02% below its last price level and a downside to the estimated low will see the stock lose -49.31% over that period. But an upside of 24.26% will see the stock hit the forecast high price target while mean target price for the stock is $54.00.

    Insiders at the company have transacted a total of 87 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 40 of these insider trades were purchases, accounting for 657,196 shares. Insider sales of the common stock occurred on 47 occasions, with total insider shares sold totaling 419,643 shares.

    The top 3 mutual fund holders in II-VI Incorporated are Hartford Mid Cap Fund, Fidelity Blue Chip Growth Fund, and iShares Core S&P Mid Cap ETF. Hartford Mid Cap Fund owns 6.16 million shares of the company’s stock, all valued at over $290.9 million. The company bought an additional 17321.0 shares recently to bring their total holdings to about 6.75% of the shares outstanding. Fidelity Blue Chip Growth Fund bought 0.35 million shares to see its total holdings expand to 2.85 million shares valued at over $134.47 million and representing 3.12% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.83% of the shares outstanding.

    Shares of II-VI Incorporated (NASDAQ: IIVI) opened at $52.84, up $0.41 from a prior closing price of $52.43. However, the script later closed the day at $52.26, down -0.32%. The company’s stock has a 5-day price change of 6.33% and 50.17% over the past three months. IIVI shares are trading 55.21% year to date (YTD), with the 12-month market performance up to 43.06% higher. It has a 12-month low price of $19.00 and touched a high of $52.86 over the same period. Currently, 1.28 million shares have been traded, compared to an average intraday trading volume of 2.21 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 11.40%, 10.26%, and 44.00% respectively.

    Institutional ownership of II-VI Incorporated (NASDAQ: IIVI) shares accounts for 90.20% of the company’s 91.08M shares outstanding. Mutual fund holders own 41.06%, while other institutional holders and individual stakeholders account for 60.26% and 10.95% respectively.

    It has a market capitalization of $5.16B and a beta (3y monthly) value of 1.29. The earnings-per-share (ttm) stands at -$0.99. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.29% over the week and 4.26% over the month.

    Analysts forecast that II-VI Incorporated (IIVI) will achieve an EPS of $0.76 for the current quarter, $0.67 for the next quarter and $2.9 for 2021. The lowest estimate earnings-per-share for the quarter is $0.6 while analysts give the company a high EPS estimate of $1.01. Comparatively, EPS for the current quarter was $0.67 a year ago. Earnings per share for the fiscal year are expected to increase by 10.90%, and 35.06% over the next financial year. EPS should shrink at an annualized rate of 13.18% over the next five years, compared to 22.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate II-VI Incorporated (IIVI) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 4 of the 16 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the IIVI, a number of firms have released research notes about the stock. Loop Capital stated their Buy rating for the stock in a research note on July 23, 2020, with the firm’s price target at. Needham coverage for the II-VI Incorporated (IIVI) stock in a research note released on May 12, 2020 offered a Buy rating with a price target of $52. Barclays was of a view on March 23, 2020 that the stock is Overweight, while Northland Capital gave the stock Outperform rating on March 16, 2020, issuing a price target of. Needham on their part issued Buy rating on March 16, 2020.


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