A better buy-in window may exist right now for CommScope Holding Company Inc. (COMM)

CommScope Holding Company Inc. (NASDAQ: COMM) stock jumped 1.61% on Friday to $9.44 against a previous-day closing price of $9.29. With 4.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.19 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $9.52 whereas the lowest price it dropped to was $9.07. The 52-week range on COMM shows that it touched its highest point at $21.68 and its lowest point at $5.56 during that stretch. It currently has a 1-year price target of $9.60. Beta for the stock currently stands at 1.85.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of COMM was up-trending over the past week, with a rise of 19.49%, but this was up by 57.86% over a month. Three-month performance surged to 49.84% while six-month performance rose 0.53%. The stock lost -53.86% in the past year, while it has lost -14.49% so far this year. A look at the trailing 12-month EPS for COMM yields -2.75 with Next year EPS estimates of 2.23. For the next quarter, that number is 0.29. This implies an EPS growth rate of 20.20% for this year and 45.94% for next year. EPS is expected to grow by 28.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -33.60%.

Float and Shares Shorts:

At present, 205.40 million COMM shares are outstanding with a float of 202.07 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.94 million, which was 7.21% higher than short shares on Jun 14, 2022. In addition to Mr. Charles L. Treadway as the firm’s Pres, CEO & Director, Mr. Kyle D. Lorentzen serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 93.40% of COMM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.02% of COMM, in contrast to 41.60% held by mutual funds. Shares owned by individuals account for 12.91%. As the largest shareholder in COMM with 12.87% of the stake, The Vanguard Group, Inc. holds 26,669,243 shares worth 26,669,243. A second-largest stockholder of COMM, FPR Partners LLC, holds 19,673,018 shares, controlling over 9.49% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in COMM, holding 18,146,557 shares or 8.76% stake. With a 4.10% stake in COMM, the Hartford Mid Cap Fund is the largest stakeholder. A total of 8,495,862 shares are owned by the mutual fund manager. The Undiscovered Managers Behavioral, which owns about 2.83% of COMM stock, is the second-largest Mutual Fund holder. It holds 5,857,111 shares valued at 35.85 million. Vanguard Total Stock Market Index holds 2.80% of the stake in COMM, owning 5,797,855 shares worth 35.48 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, COMM reported revenue of $2.23B and operating income of $38.90M. Over the past year, revenue came in at $8.74B while operating income stood at $66.50M. It generated -$139.90M net income for the quarter, which came to -$504.90M over the last twelve months. The EBITDA in the recently reported quarter was $219.80M and diluted EPS was -$0.75. EBITDA for the full year was $884.40M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COMM since 13 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With COMM analysts setting a high price target of $15.00 and a low target of $6.00, the average target price over the next 12 months is $9.36. Based on these targets, COMM could surge 58.9% to reach the target high and fall by -36.44% to reach the target low. Reaching the average price target will result in a decline of -0.85% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. COMM will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $1.66 being high and $1.34 being low. For COMM, this leads to a yearly average estimate of $1.53. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CommScope Holding Company Inc. surprised analysts by $0.06 when it reported $0.26 EPS against a consensus estimate of $0.20. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is $0.34 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.28.

Summary of Insider Activity:

Insiders traded COMM stock several times over the past three months with 20 Buys and 5 Sells. In these transactions, 414,212 shares were bought while 28,958 shares were sold. The number of buy transactions has increased to 55 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 2,011,646 while 243,293 shares were sold.

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