Analysts Mostly Positive on Acacia Communications After Quiet-Period Expiration

By Jon C. Ogg Updated Jan 13, 7:06AM EST · Published Jun 7, 10:45AM EDT

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Analysts Mostly Positive on Acacia Communications After Quiet-Period Expiration — © Thinkstock

Acacia Communications Inc. (NASDAQ: ACIA) has done quite well since its initial public offering in May. Now the quiet period has ended for the provider of high-speed coherent interconnect products and the analysts from the underwriting syndicate have initiated coverage.

What stands out here is that Acacia Communications was last seen trading at more than $39, up over 50% from the initial $23 per share pricing. That price was also at the higher end of the $21.00 to $23.00 range that had been indicated by the underwriting syndicate.

Another issue was that only 4.5 million shares were initially sold, so the float is low. Acacia Communications had top venture capital investors behind it: Matrix Partners, Commonwealth Capital Ventures, as well as Summit Partners.

Investors know that this is a serious growth company. Acacia’s revenue in 2015 was $239.1 million, which was up more than 63% from its revenues of 2014.

[nativounit]

24/7 Wall St. wanted to see how the analysts initiated coverage on Acacia. For the most part the ratings are positive:

Merrill Lynch started it with a Buy rating and $44 price objective.
Cowen started it with an Outperform rating and $53 price target.
Deutsche Bank started it with a Buy rating and $50 price target.
Goldman Sachs started it with a Neutral rating and $39 price target.
Needham started it with a Buy rating and $48 price target.

Northland Capital Markets was listed as a co-manager in the syndicate as well. Unfortunately, we have not seen that firm’s official rating and price target yet.

Acacia Communications traded up 1.7% at $36.50 in the premarket on Tuesday. Then the stock was up 9% at $39.13 mid-morning on Tuesday. Its post-IPO range is $27.05 to $43.10.

[wallst_email_signup]

DISCLOSURE:

Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $15. Probability of member receiving $3,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $3,000 are subject to decrease. See full terms and conditions.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.

Follow 24/7 Wall St. on Google

About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.