Applied Micro Circuits Corp. (NASDAQ:AMCC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “Applied Micro is focused on offering innovative products like Mudan storage reference platform to augments its revenues. The company expects the embedded computer products to generate solid revenues in the next 18 to 24 months as it transitions to X-Gene based embedded products. However, the company’s computing segment continues to be adversely impacted by the overall business spending cuts as the PowerPC architecture is reportedly in secular decline. Stiff competition from other industry players and high technology obsolescence remain additional headwinds. The company also has a lackluster earnings history in the trailing four quarters. Earnings estimates have remained steady over the last month at a loss of $0.09. High operating expenses owing to significant R&D expenses reduced the profitability of the company and remain concerns. Moreover, the company continues to be cautious about the erratic macroeconomic environment.”

Other analysts have also recently issued research reports about the stock. Susquehanna began coverage on shares of Applied Micro Circuits Corp. in a research note on Tuesday. They issued a “neutral” rating and a $8.00 price target for the company. BMO Capital Markets reaffirmed a “hold” rating and set a $7.00 price objective on shares of Applied Micro Circuits Corp. in a research report on Thursday, July 28th. Oppenheimer Holdings Inc. reaffirmed a “hold” rating on shares of Applied Micro Circuits Corp. in a research report on Wednesday, June 15th. Finally, Roth Capital began coverage on shares of Applied Micro Circuits Corp. in a research report on Thursday, September 1st. They set a “buy” rating and a $8.00 price objective for the company. Six research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $8.19.

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Applied Micro Circuits Corp. (NASDAQ:AMCC) traded down 0.648% during trading on Tuesday, reaching $6.895. 151,217 shares of the company’s stock traded hands. The company has a 50 day moving average price of $7.03 and a 200-day moving average price of $6.58. The company’s market cap is $588.60 million. Applied Micro Circuits Corp. has a 12-month low of $4.93 and a 12-month high of $7.68.

Applied Micro Circuits Corp. (NASDAQ:AMCC) last posted its quarterly earnings results on Wednesday, July 27th. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.02) by $0.01. Applied Micro Circuits Corp. had a negative net margin of 21.91% and a negative return on equity of 31.29%. The firm earned $41.50 million during the quarter, compared to analysts’ expectations of $41.51 million. During the same period last year, the company earned ($0.04) EPS. The business’s quarterly revenue was up 9.8% on a year-over-year basis. On average, equities research analysts forecast that Applied Micro Circuits Corp. will post ($0.05) EPS for the current fiscal year.

Large investors have recently added to or reduced their stakes in the company. Jane Street Group LLC raised its stake in Applied Micro Circuits Corp. by 49.3% in the second quarter. Jane Street Group LLC now owns 16,655 shares of the company’s stock worth $107,000 after buying an additional 5,503 shares during the period. Tower Research Capital LLC TRC raised its stake in shares of Applied Micro Circuits Corp. by 2,462.9% in the second quarter. Tower Research Capital LLC TRC now owns 16,915 shares of the company’s stock worth $109,000 after buying an additional 16,255 shares during the last quarter. Stifel Financial Corp raised its stake in shares of Applied Micro Circuits Corp. by 6.6% in the second quarter. Stifel Financial Corp now owns 20,250 shares of the company’s stock worth $130,000 after buying an additional 1,250 shares during the last quarter. Menta Capital LLC raised its stake in shares of Applied Micro Circuits Corp. by 28.6% in the first quarter. Menta Capital LLC now owns 21,600 shares of the company’s stock worth $140,000 after buying an additional 4,800 shares during the last quarter. Finally, Quantitative Investment Management LLC purchased a new stake in shares of Applied Micro Circuits Corp. during the second quarter worth $156,000. Institutional investors own 76.24% of the company’s stock.

About Applied Micro Circuits Corp.

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing.

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