LightPath Technologies, Inc. (NASDAQ:LPTH) Executes Vertical Integration Strategy

LightPath Technologies, Inc. (NASDAQ:LPTH)

LightPath Technologies, Inc. (NASDAQ:LPTH) today announced, as part of their vertical integration strategy, the addition of glass manufacturing abilities. This ability also supports their subsidiary’s, ISP Optics, diamond and coating options. ISP Optics was acquired several months ago. News of the company’s new production capabilities was warmly received by the market as LPTH shares are up 15% on heavy volumes – over ten times their daily average.

Since 2009 LPTH shares have generally traded, on a dilution-adjusted basis, between $0.50 and $3.50 with most of the price action taking place between $1.00 and $2.50. LPTH has a 52-week high of $2.64 and a 52-week low of $1.21. LPTH shares have a Relative Strength figure over 78. Market observers believe a number above 70 indicates a stock that is trending to “overbought” status. According to records, institutional investors have recently more than tripled their holdings in LPTH.

LightPath Technologies, Inc. (NASDAQ:LPTH) designs, develops, manufactures, and distributes optical components and assemblies. LightPath offers precision molded glass aspheric optics, infrared aspheric lenses, Gradium glass lenses, and other optical materials used to produce products that manipulate light. Its products are used in various industries, including defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other industries. The company sells its products directly to customers in North America and China, as well as through distributors and channel partners in Europe, the United States, and internationally.

LightPath Technologies, Inc. (NASDAQ:LPTH) has seen impressive performance as of late. LPTH shares are up over 11% in the past month, up over 70% YTD, and up over 34% for the year. LightPath has increased sales YoY since 213 when the company posted a figure of $11.8 million. By 2016 that number grew to $17.3 million. EPS improved for LPTH shareholders from 2015 to 2016. In 2015 there was an EPS loss of -$0.06 but in 2016 there was an EPS profit of $0.09. Dilution has been manageable given the stock’s performance. In 2013 there were 12.1 million shares of LPTH outstanding and that grew to 15.4 million by the end of 2016. Two firms follow LightPath Technologies, Inc. (NASDAQ:LPTH). One rates LPTH shares as a “Strong Buy” and one rates the shares as a “Buy”. Their consensus price target is $2.93 – about a dime below current trading levels.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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