Harmonic Stock Price and Value Analysis

Should you buy Harmonic stock? (NasdaqGS:HLIT). Let's see how it does in our automated value investing analysis system.

HLIT Free Cash Flow Trend

Free Cash Flow trendline for HLIT
Free Cash Flow trendline for Harmonic

Based on historical returns, we believe that Harmonic can grow its free cash at a rate of about 4%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company is solid.
  • This company has wild ups and downs.
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the HLIT Numbers

HLIT Price
(Harmonic stock price per share)
$8.14
[?] HLIT Fair Price
(based on intrinsic value)
$3.40
[?] HLIT Safety Price (based on a variable margin of safety) $2.21
[?] PE Ratio versus Sector 66% higher than other Technology stocks
[?] PE Ratio versus Industry 8% higher than other Communication Equipment stocks
[?] Cash Yield 1.48%
[?] Free Cash Flow Jitter 90%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 7,853,944 shares shorted. With 85,149,742 shares available for purchase and an average trading volume over the past 10 trading days of 749,433, it would take at least 10.48 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is Harmonic Stock on Sale?

We believe that Harmonic may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Harmonic looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy HLIT Stock?

Does Harmonic have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.