Harmonic (HLIT) - 18.27% Below 52-Week High: Buy or Wait?

Stock Details

Harmonic Inc. (HLIT), a prominent company in the technology sector within the communication equipment industry, is based in United States and primarily trades on the NMS.Currently, the stock is trading at $14.45. Over the past 52 weeks, it has ranged between $7.80 and $17.68. This places the current price at 81.7% of its 52-week high and 85.3% above its 52-week low. Recent trading volume was recorded at 2,553,177. The 14-day Relative Strength Index (RSI) stands at 54.11, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $12.97 by 11.41%. Similarly, it is above its 200-day moving average of $10.73 by 34.67%. The MACD histogram is -0.10, indicating bearish momentum (MACD Line: 0.46, Signal Line: 0.57).

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

183.25

Above market average

Forward P/E

18.86

Earnings expected to grow

PEG Ratio

1.84

Reasonably valued

Price to Book

4.48

EV/EBITDA

39.02

EPS (TTM)

$0.08

Price to Sales

4.00

Beta

1.31

Similar volatility to market

Q:How is HLIT valued relative to its earnings and growth?

Harmonic Inc. trades at a P/E ratio of 183.25, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 18.86 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.84 indicates reasonable value when growth is considered.

Q:What is HLIT's risk profile compared to the market?

With a beta of 1.31, Harmonic Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 4.48 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

-10.56%

Operating Margin

16.80%

EBITDA

$41.33M

Return on Equity

2.12%

Return on Assets

2.57%

Revenue Growth (YoY)

43.40%

Earnings Growth (YoY)

31.90%

Q:How profitable and efficient is HLIT's business model?

Harmonic Inc. achieves a profit margin of -10.56%, meaning it retains $-10.56 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 16.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 2.12% and ROA at 2.57%, the company achieves moderate returns on invested capital.

Q:What are HLIT's recent growth trends?

Harmonic Inc.'s revenue grew by 43.40% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 31.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Communication Equipment industry averages for proper context.

Company Size & Market

Market Cap

$1.6B

Revenue (TTM)

$397.34M

Revenue/Share (TTM)

$3.55

Shares Outstanding

108.50M

Book Value/Share

$3.27

Asset Type

EQUITY

Q:What is HLIT's market capitalization and position?

Harmonic Inc. has a market capitalization of $1.6B, classifying it as a small-cap stock (under $2B). Small-caps offer significant growth potential but come with higher volatility and risk. They can be more sensitive to economic conditions but may provide outsized returns if successful. With 108.50M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Communication Equipment industry, it competes with other firms in this sector.

Q:How does HLIT's price compare to its book value?

Harmonic Inc.'s book value per share is $3.27, while the current stock price is $14.45, resulting in a price-to-book (P/B) ratio of 4.41. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$15.29

5.78% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for HLIT?

7 analysts cover HLIT with 57% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $15.29 implies 5.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on HLIT?

Current analyst recommendations:2 Strong Buy, 2 Buy, 2 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jun 24, 2026, 02:08 AM

Technical Indicators

RSI (14-day)

54.11

Neutral

50-Day Moving Average

$12.97

11.41% above MA-50

200-Day Moving Average

$10.73

34.67% above MA-200

MACD Line

0.46

MACD Signal

0.57

MACD Histogram

-0.10

Bearish

Q:What does HLIT's RSI value tell investors?

The RSI (Relative Strength Index) for HLIT is currently 54.11, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

Q:How should traders interpret HLIT's MACD and moving average crossovers?

MACD analysis shows the MACD line at 0.46 below the signal line at 0.57, with histogram at -0.10. This bearish crossover indicates downward pressure. The 50-day MA ($12.97) is above the 200-day MA ($10.73), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jun 24, 2026, 01:08 AM

Harmonic Inc. (HLIT) Stock