Value Hunters: Look To Corning Incorporated (GLW)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Corning Incorporated (NYSE:GLW). The institutional investor has increased its shareholding in the Technology company by 18.69% to 72.04 million shares with purchase of 11.35 million shares. This fresh investment now brings its stake to 9.47% valued currently at $2.23 billion. In addition, Wellington Management Co. LLP raised its holdings by 9.65 million to 52.99 million shares. And SSgA Funds Management, Inc. has lifted its position by 1.28% or 0.48 million shares – to 38.04 million shares.

    With over 6.19 million Corning Incorporated (GLW) shares trading Friday and a closing price of $32.66 on the day, the dollar volume was approximately $202.14 million. The shares have shown a positive weekly performance of 0.59% and its price on 08/28/20 gained nearly 1.65%. Currently, there are 761.78M common shares owned by the public and among those 759.08M 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: 13 analysts who have offered their price forecasts for GLW have a consensus price objective of $31.39. The analysts have set the share’s price value over the next 12 months at a high of $38.00 and a low of $26.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Corning Incorporated stock is 2.40 for the next 12 months. The average price target is -9.63% below its last price level and a downside to the estimated low will see the stock lose -25.62% over that period. But an upside of 14.05% will see the stock hit the forecast high price target while mean target price for the stock is $31.00.

    Insiders at the company have transacted a total of 103 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 61 of these insider trades were purchases, accounting for 510,856 shares. Insider sales of the common stock occurred on 42 occasions, with total insider shares sold totaling 551,058 shares.

    The top 3 mutual fund holders in Corning Incorporated are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Vanguard Wellesley Income Fund. Vanguard Total Stock Market Index owns 21.62 million shares of the company’s stock, all valued at over $670.28 million. The company sold 67354.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard 500 Index Fund sold 92041.0 shares to see its total holdings shrink to 15.65 million shares valued at over $485.18 million and representing 2.06% of the shares outstanding. Vanguard Wellesley Income Fund sold -1.21 million shares to bring its total holdings to over 12.44 million shares at a value of $385.65 million. Vanguard Wellesley Income Fund now owns shares totaling to 1.64% of the shares outstanding.

    Shares of Corning Incorporated (NYSE: GLW) opened at $32.22, up $0.09 from a prior closing price of $32.13. However, the script later closed the day at $32.66, up 1.65%. The company’s stock has a 5-day price change of 0.59% and 43.62% over the past three months. GLW shares are trading 12.20% year to date (YTD), with the 12-month market performance up to 17.82% higher. It has a 12-month low price of $17.44 and touched a high of $33.56 over the same period. Currently, 6.19 million shares have been traded, compared to an average intraday trading volume of 5.72 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 1.61%, 10.78%, and 24.14% respectively.

    Institutional ownership of Corning Incorporated (NYSE: GLW) shares accounts for 78.20% of the company’s 761.78M shares outstanding. Mutual fund holders own 34.61%, while other institutional holders and individual stakeholders account for 43.61% and 1.27% respectively.

    It has a market capitalization of $24.45B and a beta (3y monthly) value of 1.14. The stock’s trailing 12-month PE ratio is 323.37, while the earnings-per-share (ttm) stands at $0.10. The company has a PEG of 67.37 and a Quick Ratio of 1.50 with the debt-to-equity ratio at 0.80. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.38% over the week and 1.68% over the month.

    Analysts forecast that Corning Incorporated (GLW) will achieve an EPS of $0.32 for the current quarter, $0.41 for the next quarter and $1.71 for 2021. The lowest estimate earnings-per-share for the quarter is $0.24 while analysts give the company a high EPS estimate of $0.38. Comparatively, EPS for the current quarter was $0.44 a year ago. Earnings per share for the fiscal year are expected to decrease by -5.70%, and 44.46% over the next financial year. EPS should grow at an annualized rate of 4.80% over the next five years, compared to -9.20% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Corning Incorporated (GLW) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 7 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the GLW, a number of firms have released research notes about the stock. JP Morgan stated their Overweight rating for the stock in a research note on July 16, 2020, with the firm’s price target at $25-$36. Barclays coverage for the Corning Incorporated (GLW) stock in a research note released on April 29, 2020 offered a Equal Weight rating with a price target of $22. Morgan Stanley was of a view on January 08, 2020 that the stock is Equal-Weight, while Deutsche Bank gave the stock Hold rating on October 30, 2019, issuing a price target of $33- $30. BofA/Merrill on their part issued Buy rating on September 17, 2019.


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