In a report released today, Dave Kang from B.Riley FBR maintained a Buy rating on Luna Innovations Inc (LUNA), with a price target of $5.50. The company’s shares closed yesterday at $4.60, close to its 52-week high of $4.69.
Kang observed:
“Luna Innnovations (LUNA) reported 1Q sales/EPS of $14.8M/$0.07 (non-GAAP), ahead of consensus estimates of $13.0M/$0.00. The company also reaffirmed its 2019 revenue/AEBITDA guidance of $60M-$65M/$6.0M-$6.5M. Management cited broad-based strength across both Tech/Dev as well as Prod/Licensing. GM decreased to 45.6% from 48.5% in 4Q, but we expect GM to expand Q/Q in 2019. New products, coupled with secular growth in datacenter and advanced materials, appear to be gathering momentum. We raise our revenue estimates, but lower our EPS estimates, mainly as we have underestimated the opex portion of recently- acquired General Photonics (GP) business. We increase our PT from $5.00 to $5.50, which is based on an EV/sales multiple of 2.2x (1.7x prev.) our 2020 revenue estimate plus net cash. Maintain Buy.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 20.5% and a 66.0% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Acacia Communications, and Lumentum Holdings.
Currently, the analyst consensus on Luna Innovations Inc is a Moderate Buy with an average price target of $4.75.
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The company has a one-year high of $4.69 and a one-year low of $2.68. Currently, Luna Innovations Inc has an average volume of 112.3K.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LUNA in relation to earlier this year. Most recently, in February 2019, John B. Williamson, a Director at LUNA bought 120,000 shares for a total of $164,400.
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Luna Innovations, Inc. develops and manufactures fiber optic test and measurement, sensing and instrumentation products for the healthcare, telecommunications, energy and defense markets. It operates through two segments: Products and Licensing, and Technology Development.
