NEW YORK (TheStreet) --Shares of LightPath Technologies (LPTH) - Get Report were gaining 32.8% to $1.78 on heavy trading Tuesday after the company announced its Infrared 40 degree Field of View modified optical lens assembly was selected for use in the manufacturing of firefighting thermal imaging cameras.

LightPath said an unnamed "leading supplier of integrated products and technologies for defense departments and federal, state and municipal government agencies worldwide" will use the technology in the thermal imaging cameras.

"This is a very large and vital market where increased levels of government spending are being allocated to ensure the safety of both the firefighters and the people they protect," President and CEO Jim Gaynor said in a statement.

About 5.7 million shares of LightPath Technologies were traded by 11:35 a.m. Tuesday, above the company's average trading volume of about 94,000 shares a day.

TheStreet Ratings team rates LIGHTPATH TECHNOLOGIES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate LIGHTPATH TECHNOLOGIES INC (LPTH) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly decreased to -$0.26 million or 386.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LPTH has underperformed the S&P 500 Index, declining 7.41% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, LIGHTPATH TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • LIGHTPATH TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LIGHTPATH TECHNOLOGIES INC swung to a loss, reporting -$0.02 versus $0.02 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.02).
  • The gross profit margin for LIGHTPATH TECHNOLOGIES INC is rather high; currently it is at 53.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.81% trails the industry average.
  • You can view the full analysis from the report here: LPTH Ratings Report