Zacks Investment Research Downgrades Comtech Telecomm. (CMTL) to Hold

Comtech Telecomm. (NASDAQ:CMTL) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday.

According to Zacks, “Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets. The Company believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable, inefficient or too expensive. The Company conducts business through three complementary segments: telecommunications transmission, RF microwave amplifiers and mobile data communications. “

Other research analysts have also recently issued research reports about the company. TheStreet cut Comtech Telecomm. from a “b-” rating to a “c+” rating in a research note on Thursday, November 15th. ValuEngine upgraded Comtech Telecomm. from a “hold” rating to a “buy” rating in a research note on Thursday, February 14th. BidaskClub cut Comtech Telecomm. from a “hold” rating to a “sell” rating in a research note on Friday, March 1st. Finally, Noble Financial set a $38.00 price target on Comtech Telecomm. and gave the stock a “buy” rating in a research note on Saturday, December 8th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and three have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $34.80.

Shares of NASDAQ:CMTL opened at $22.28 on Wednesday. The firm has a market cap of $545.97 million, a price-to-earnings ratio of 29.71, a P/E/G ratio of 3.97 and a beta of 1.33. Comtech Telecomm. has a 12-month low of $22.00 and a 12-month high of $36.94. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.20 and a quick ratio of 1.53.

Comtech Telecomm. (NASDAQ:CMTL) last announced its quarterly earnings data on Wednesday, March 6th. The communications equipment provider reported $0.32 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.16 by $0.16. The business had revenue of $164.10 million during the quarter, compared to analysts’ expectations of $159.96 million. Comtech Telecomm. had a return on equity of 6.56% and a net margin of 4.21%. The firm’s quarterly revenue was up 22.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 earnings per share. As a group, research analysts anticipate that Comtech Telecomm. will post 1.14 EPS for the current year.

In other news, Director Edwin Kantor sold 1,000 shares of the business’s stock in a transaction on Tuesday, December 18th. The stock was sold at an average price of $25.50, for a total value of $25,500.00. Following the completion of the transaction, the director now owns 500 shares in the company, valued at $12,750. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP John Branscum sold 1,158 shares of the business’s stock in a transaction on Friday, January 18th. The stock was sold at an average price of $25.16, for a total value of $29,135.28. Following the completion of the transaction, the vice president now owns 35,162 shares of the company’s stock, valued at approximately $884,675.92. The disclosure for this sale can be found here. 7.30% of the stock is owned by insiders.

Institutional investors have recently bought and sold shares of the stock. Resources Investment Advisors Inc. increased its position in Comtech Telecomm. by 56.9% during the fourth quarter. Resources Investment Advisors Inc. now owns 1,765 shares of the communications equipment provider’s stock valued at $43,000 after acquiring an additional 640 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. purchased a new stake in Comtech Telecomm. during the fourth quarter valued at $89,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS purchased a new stake in Comtech Telecomm. during the third quarter valued at $205,000. ClariVest Asset Management LLC purchased a new stake in Comtech Telecomm. during the fourth quarter valued at $148,000. Finally, SG Americas Securities LLC increased its position in Comtech Telecomm. by 104.9% during the third quarter. SG Americas Securities LLC now owns 7,260 shares of the communications equipment provider’s stock valued at $263,000 after acquiring an additional 3,716 shares during the last quarter. Institutional investors own 88.21% of the company’s stock.

Comtech Telecomm. Company Profile

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions. The company's Commercial Solutions segment offers ground-based equipment, including single channel per carrier modems and solid-state amplifiers that facilitate the transmission of voice, video, and data over satellite links; and traveling wave tube amplifiers, such as high power narrow-band amplifiers used to amplify signals from satellite earth stations, as well as safety and security technologies.

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