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

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Shares of Applied Micro Circuits Corp. (NASDAQ:AMCC) traded down 0.58% during mid-day trading on Tuesday, hitting $6.90. The company had a trading volume of 146,061 shares. The firm has a 50-day moving average of $7.03 and a 200-day moving average of $6.58. Applied Micro Circuits Corp. has a 12 month low of $4.93 and a 12 month high of $7.68. The company’s market cap is $589.03 million.

Applied Micro Circuits Corp. (NASDAQ:AMCC) last issued its quarterly earnings data on Wednesday, July 27th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ 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 company earned $41.50 million during the quarter, compared to analysts’ expectations of $41.51 million. During the same quarter in the prior year, the company earned ($0.04) earnings per share. The firm’s revenue was up 9.8% compared to the same quarter last year. On average, analysts expect that Applied Micro Circuits Corp. will post ($0.05) EPS for the current year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Menta Capital LLC boosted 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. Geode Capital Management LLC boosted its stake in shares of Applied Micro Circuits Corp. by 7.3% in the first quarter. Geode Capital Management LLC now owns 591,032 shares of the company’s stock worth $3,818,000 after buying an additional 40,147 shares during the last quarter. University of Notre Dame DU Lac boosted its stake in shares of Applied Micro Circuits Corp. by 62.7% in the first quarter. University of Notre Dame DU Lac now owns 246,624 shares of the company’s stock worth $1,593,000 after buying an additional 94,999 shares during the last quarter. Friess Associates LLC boosted its stake in shares of Applied Micro Circuits Corp. by 1.2% in the first quarter. Friess Associates LLC now owns 841,126 shares of the company’s stock worth $5,434,000 after buying an additional 10,126 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its stake in shares of Applied Micro Circuits Corp. by 87.5% in the first quarter. Renaissance Technologies LLC now owns 474,736 shares of the company’s stock worth $3,067,000 after buying an additional 221,600 shares during the last quarter. 76.24% of the stock is currently owned by institutional investors.

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.

5 Day Chart for NASDAQ:AMCC

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