Acacia Communications Inc. [NASDAQ: ACIA] jumped around 27.19 points on Thursday, while shares priced at $113.64 at the close of the session, up 31.45%. The company report on January 12, 2021 that Acacia Communications Files Counterclaim Against Cisco.
Acacia Communications, Inc. (Nasdaq: ACIA) (“Acacia” or “the Company”) announced that it filed its answer and affirmative defenses in response to the complaint filed by Cisco Systems, Inc. (Nasdaq: CSCO) (“Cisco”) in the Delaware Court of Chancery and simultaneously filed a counterclaim against Cisco seeking a declaration that Acacia validly terminated the merger agreement with Cisco because the required Chinese regulatory approval was not obtained and the merger did not close before the agreed-upon termination date under the agreement.
As previously announced, on January 8, 2021, Acacia delivered to Cisco a notice to terminate the merger agreement for the proposed acquisition of Acacia by Cisco. The transaction was conditioned on the satisfaction or mutual waiver of agreed-upon closing conditions, including obtaining necessary regulatory approvals. The merger agreement afforded the parties 18 months to obtain the necessary antitrust approvals from the Chinese government before, as Acacia asserts, either Acacia or Cisco could terminate the agreement on January 8, 2021. Such approval was not received before January 8, 2021, and Acacia delivered a notice of termination of the merger agreement on that date. Cisco has initiated litigation against Acacia in Delaware challenging the Company’s termination of the merger agreement, claiming that the Chinese Government’s State Administration for Market Regulation (“SAMR”) approval was received on January 7, 2021.
Acacia Communications Inc. stock is now 55.76% up from its year-to-date (YTD) trading value. ACIA Stock saw the intraday high of $114.73 and lowest of $112.9006 per share. The company’s 52-week high price is 86.98, which means current price is +62.44% above from all time high which was touched on 01/14/21.
Compared to the average trading volume of 1.11M shares, ACIA reached a trading volume of 14982433 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Acacia Communications Inc. [ACIA]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ACIA shares is $70.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ACIA stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Rosenblatt have made an estimate for Acacia Communications Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 12, 2021. The new note on the price target was released on January 08, 2021, representing the official price target for Acacia Communications Inc. stock.
The Average True Range (ATR) for Acacia Communications Inc. is set at 3.92, with the Price to Sales ratio for ACIA stock in the period of the last 12 months amounting to 7.95. The Price to Book ratio for the last quarter was 7.23, with the Price to Cash per share for the same quarter was set at 11.88. Price to Free Cash Flow for ACIA in the course of the last twelve months was 56.98 with Quick ratio for the last quarter at 4.30.
How has ACIA stock performed recently?
Acacia Communications Inc. [ACIA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 56.85. With this latest performance, ACIA shares gained by 62.16% in over the last four-week period, additionally plugging by 67.12% over the last 6 months – not to mention a rise of 65.97% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ACIA stock in for the last two-week period is set at 96.49, with the RSI for the last a single of trading hit 97.37, and the three-weeks RSI is set at 95.65 for Acacia Communications Inc. [ACIA]. The present Moving Average for the last 50 days of trading for this stock 72.17, while it was recorded at 89.40 for the last single week of trading, and 68.86 for the last 200 days.
Acacia Communications Inc. [ACIA]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Acacia Communications Inc. [ACIA] shares currently have an operating margin of +4.09 and a Gross Margin at +47.49. Acacia Communications Inc.’s Net Margin is presently recorded at +7.07.
Return on Total Capital for ACIA is now 3.45, given the latest momentum, and Return on Invested Capital for the company is 5.99. Return on Equity for this stock inclined to 6.07, with Return on Assets sitting at 4.93. When it comes to the capital structure of this company, Acacia Communications Inc. [ACIA] has a Total Debt to Total Equity ratio set at 3.45. Additionally, ACIA Total Debt to Total Capital is recorded at 3.33, with Total Debt to Total Assets ending up at 2.74. Long-Term Debt to Equity for the company is recorded at 2.72, with the Long-Term Debt to Total Capital now at 2.63.
Reflecting on the efficiency of the workforce at the company, Acacia Communications Inc. [ACIA] managed to generate an average of $76,548 per employee. Receivables Turnover for the company is 4.92 with a Total Asset Turnover recorded at a value of 0.70.Acacia Communications Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.30 and a Current Ratio set at 4.60.
Earnings analysis for Acacia Communications Inc. [ACIA]
With the latest financial reports released by the company, Acacia Communications Inc. posted 0.48/share EPS, while the average EPS was predicted by analysts to be reported at 0.56/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -14.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ACIA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Acacia Communications Inc. go to -12.00%.
Insider trade positions for Acacia Communications Inc. [ACIA]
There are presently around $4,126 million, or 93.50% of ACIA stock, in the hands of institutional investors. The top three institutional holders of ACIA stocks are: VANGUARD GROUP INC with ownership of 3,499,131, which is approximately -5.919% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 2,895,779 shares of the stock with an approximate value of $329.08 million in ACIA stocks shares; and ALPINE ASSOCIATES MANAGEMENT INC., currently with $256.49 million in ACIA stock with ownership of nearly 2.6% of the company’s market capitalization.
Positions in Acacia Communications Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 86 institutional holders increased their position in Acacia Communications Inc. [NASDAQ:ACIA] by around 5,621,217 shares. Additionally, 90 investors decreased positions by around 5,472,269 shares, while 25 investors held positions by with 25,209,959 shares. The mentioned changes placed institutional holdings at 36,303,445 shares, according to the latest SEC report filing. ACIA stock had 34 new institutional investments in for a total of 2,191,313 shares, while 23 institutional investors sold positions of 1,609,577 shares during the same period.