An analyst sees good growth prospects for QualTek Services Inc. (QTEK)

QualTek Services Inc. (NASDAQ: QTEK) stock fell -38.70% on Wednesday to $0.10 against a previous-day closing price of $0.17. With 4.21 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.37 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $0.1522 whereas the lowest price it dropped to was $0.1038. The 52-week range on QTEK shows that it touched its highest point at $2.68 and its lowest point at $0.17 during that stretch.

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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 QTEK was down-trending over the past week, with a drop of -48.02%, but this was down by -56.25% over a month. Three-month performance dropped to -76.56% while six-month performance fell -87.93%. The stock lost -92.76% in the past year, while it has lost -76.18% so far this year. A look at the trailing 12-month EPS for QTEK yields -1.57 with Next year EPS estimates of -0.68. For the next quarter, that number is -0.18. This implies an EPS growth rate of -397.30% for this year and -23.60% for next year.

Float and Shares Shorts:

At present, 24.68 million QTEK shares are outstanding with a float of 15.00 million shares on hand for trading. On Apr 27, 2023, short shares totaled 0.58 million, which was 2.10% higher than short shares on Mar 30, 2023. In addition to Mr. Christopher Scott Hisey as the firm’s CEO & Director, Mr. Matthew J. McColgan serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 67.47% of QTEK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.69% of QTEK, in contrast to 14.33% held by mutual funds. Shares owned by individuals account for 0.56%. As the largest shareholder in QTEK with 11.24% of the stake, Zeke Capital Advisors LLC holds 3,125,000 shares worth 3,125,000. A second-largest stockholder of QTEK, Legacy Advisors LLC, holds 322,656 shares, controlling over 1.16% of the firm’s shares. HighTower Advisors LLC is the third largest shareholder in QTEK, holding 161,883 shares or 0.58% stake. With a 0.28% stake in QTEK, the Fidelity Extended Market Index Fu is the largest stakeholder. A total of 78,127 shares are owned by the mutual fund manager. The iShares Tr. – Micro Cap ETF, which owns about 0.09% of QTEK stock, is the second-largest Mutual Fund holder. It holds 26,027 shares valued at 6793.0. Fidelity Nasdaq Composite Index F holds 0.08% of the stake in QTEK, owning 22,514 shares worth 5876.0.

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 Dec 30, 2022, QTEK reported revenue of $184.22M and operating income of -$11.39M. Over the past year, revenue came in at $612.24M while operating income stood at -$49.25M. It generated -$11.72M net income for the quarter, which came to -$110.43M over the last twelve months. The EBITDA in the recently reported quarter was $3.40M and diluted EPS was -$0.50. EBITDA for the full year was $58.56M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for QTEK since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With QTEK analysts setting a high price target of $4.00 and a low target of $3.50, the average target price over the next 12 months is $3.75. Based on these targets, QTEK could surge 3900.0% to reach the target high and rise by 3400.0% to reach the target low. Reaching the average price target will result in a growth of 3650.0% 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.

Summary of Insider Activity:

Insiders traded QTEK stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 3 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 17,750 while 0 shares were sold.

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