NEW YORK (TheStreet) -- Shares of Harmonic (HLIT) - Get Report were advancing 20.25% to $5.60 on heavy trading volume mid-morning Wednesday as Comcast (CMCSA) signed a warrant agreement to buy shares of the San Jose, CA-based company.
As part of the deal, the Philadelphia-based media company can acquire shares of Harmonic's common stock based on whether it meets certain sales and deployment milestones during a given time frame, Harmonic said in a statement.
A warrant gives a holder the right but not the obligation to buy or sell a stock.
"We are well positioned to further strengthen our partnership with Comcast, drive new growth and create value for our shareholders," said Harmonic CEO Patrick Harshman in a statement.
Harmonic designs, manufactures and sells video infrastructure products for companies that produce, process and distribute video content for television and the Internet.
About 1.69 million of the company's shares have changed hands so far today vs. its average volume of 579,158 shares per day.
Shares of Comcast were higher in mid-morning trading on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Harmonic as a Hold with a ratings score of C-. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, the team also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: HLIT