May 26, 2023 – Brandywine Global Investment Management LLC has increased its holdings in IPG Photonics Co. (NASDAQ:IPGP) by a staggering 35.2% during the fourth quarter, according to a recent filing with the US Securities and Exchange Commission. The institutional investor now owns 30,036 shares of the semiconductor company’s stock worth approximately $2,844,000 after purchasing an additional 7,823 shares during the period. It is interesting to note that the firm owns around 0.06% of IPG Photonics’ total market capitalization.
This news comes right on the heels of major shareholder Valentin Gapontsev Trust I selling off 8,250 shares of IPGP stock at an average price of $109.90 per share on May 24th for a total transaction value of $906,675.00. As per SEC filings, following the sale, the insider now directly owns a whopping 7,336,849 shares in IPG Photonics at a total estimated value of $806 million.
Notably, another high-ranking executive associated with the company has sold their shares as well. Director Jeanmarie F. Desmond sold off 1180 shares last Wednesday at an average price of $109.70 each for a total transaction value of more than $129k.
These insider sales have caused some ripples among investors as over the last ninety days alone insiders have liquidated nearly sixty thousand shares of company stock worth almost seven million dollars altogether. If this trend continues it might prompt further speculation from industry experts and analysts.
The long-term picture for IPGP remains upbeat as trading opened at $111.56 today amidst steady momentum built over recent weeks due to positive analyst ratings and higher demand for semiconductor-based technologies ahead . The business’s current fifty-day moving average stands at $115.45 while its two-hundred day moving average sits at $108.73. IPG Photonics Co. has a twelve month low of $79.88 and a twelve month high of $134.81, with the firm currently sporting a market capitalization of $5.28 billion, price-to-earnings ratio of 58.10, and a beta of 1.22 with competitors in the industry.
Given the current economic trends in the industry and possible upcoming changes like shifts in policies regarding semiconductor trade as well as rapid advancement in technological innovation IPGP’s future growth remains unpredictable but one thing is certain; it will continue to remain highly profitable for its investors over time .
Hedge Funds and Institutional Investors Take Notice of IPG Photonics
IPG Photonics, a semiconductor company traded on NASDAQ as IPGP, has recently attracted the attention of hedge funds and institutional investors. Concord Wealth Partners has purchased a new position in the company, while Eagle Bay Advisors LLC has boosted its holdings by 363.9%, with Signaturefd LLC and Janiczek Wealth Management LLC also owning shares of IPGP. Finally, EverSource Wealth Advisors LLC bought a new stake in IPGP just this year.
Despite some analysts’ concerns about the stock based on benchmark data and decreased price targets from firms like Citigroup, StockNews.com recently upgraded their rating from “hold” to “buy”. Meanwhile, Stifel Nicolaus raised their price target on IPGP from $110.00 to $145.00 back in February; these differing opinions have lent an average of a “Moderate Buy” rating for the stock.
In early May, IPG Photonics surpassed analysts’ earnings per share estimates by $0.26 with their Q1 2023 report of $1.26 earnings per share; despite having lower revenues than anticipated due to primarily Chinese customers reducing capital expenditures, they still outperformed last year’s numbers.
On that same day, the board of IPGP announced authorization for repurchase up to $200 million dollars worth of outstanding shares through open market purchases in response to decreasing revenue and potential undervaluation of the stock.
All eyes will be on how IPG Photonics navigates trends in customer behavior across markets over the coming year; consistently strong performance could further incentivize large investors while continued disappointing results may warrant caution and second thoughts about dropping larger money into this high-performing but volatile field.
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