We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Micro Hits 52-Week High, to Be Acquired by MACOM
Read MoreHide Full Article
Share price of Applied Micro Circuits Corporation rallied to a new 52-week high of $8.25, eventually closing a tad bit lower at $8.10 on Nov 21. This represents a strong one year return of 27.16%, better than the S&P 500’s 7.5% over the same period.
Currently, Applied Micro holds a Zacks Rank #2 (Buy). Notably, the stock has a market cap of $626 million.
Most recently, MACOM Technology Solutions (MTSI - Free Report) announced that it is set to buy Applied Micro for almost $770 million, which will help it to foray into the growing cloud market.
Applied Micro is a global leader in network and embedded PowerPC processing, optical transport and storage solutions. The company reported better-than-expected second-quarter fiscal 2017 results wherein the bottom line beat the Zacks Consensus Estimate. Moreover, management provided strong revenue guidance for the third-quarter fiscal 2017.
MACOM will pay approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro. The price represented a 15.4% premium over the company’s closing price of $7.25 on Nov 18.
Moreover, MACOM will sell off Applied Micro’s business of manufacturing computer chips after the acquisition process gets completed (within the first 100 days of closing).
Estimate Revisions
The Zacks Consensus Estimate for the current year has narrowed down to a loss of 29 cents from a loss of 39 cents over the last 30 days as most of the analysts revised their figures upward. Also, for fiscal 2018, estimates have surged 35.7% to a loss of 9 cents per share over the same time frame, as most of the analysts revised their estimates upward.
Notably, the consensus estimate for Applied Optoelectronics’ current year improved to 81 cents from 51 cents over the last 30 days.
The consensus estimate for Acacia’s current year improved to $2.33 from $2.31 over the last seven days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Applied Micro Hits 52-Week High, to Be Acquired by MACOM
Share price of Applied Micro Circuits Corporation rallied to a new 52-week high of $8.25, eventually closing a tad bit lower at $8.10 on Nov 21. This represents a strong one year return of 27.16%, better than the S&P 500’s 7.5% over the same period.
Currently, Applied Micro holds a Zacks Rank #2 (Buy). Notably, the stock has a market cap of $626 million.
Most recently, MACOM Technology Solutions (MTSI - Free Report) announced that it is set to buy Applied Micro for almost $770 million, which will help it to foray into the growing cloud market.
APPLD MICRO CIR Price and Consensus
APPLD MICRO CIR Price and Consensus | APPLD MICRO CIR Quote
Key Factors
Applied Micro is a global leader in network and embedded PowerPC processing, optical transport and storage solutions. The company reported better-than-expected second-quarter fiscal 2017 results wherein the bottom line beat the Zacks Consensus Estimate. Moreover, management provided strong revenue guidance for the third-quarter fiscal 2017.
MACOM will pay approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro. The price represented a 15.4% premium over the company’s closing price of $7.25 on Nov 18.
Moreover, MACOM will sell off Applied Micro’s business of manufacturing computer chips after the acquisition process gets completed (within the first 100 days of closing).
Estimate Revisions
The Zacks Consensus Estimate for the current year has narrowed down to a loss of 29 cents from a loss of 39 cents over the last 30 days as most of the analysts revised their figures upward. Also, for fiscal 2018, estimates have surged 35.7% to a loss of 9 cents per share over the same time frame, as most of the analysts revised their estimates upward.
Key Sector Picks
Some better-ranked stock in the broader technology space are Applied Optoelectronics, Inc. (AAOI - Free Report) and Acacia Communications, Inc. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Applied Optoelectronics’ current year improved to 81 cents from 51 cents over the last 30 days.
The consensus estimate for Acacia’s current year improved to $2.33 from $2.31 over the last seven days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>