CommScope Holding Company Inc. (NASDAQ: COMM) stock fell -2.74% on Friday to $3.55 against a previous-day closing price of $3.65. With 7.39 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.27 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $3.7200 whereas the lowest price it dropped to was $3.5000. The 52-week range on COMM shows that it touched its highest point at $13.73 and its lowest point at $3.04 during that stretch. It currently has a 1-year price target of $5.36. Beta for the stock currently stands at 1.95.
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 down-trending over the past week, with a drop of -1.93%, but this was down by -6.82% over a month. Three-month performance dropped to -28.14% while six-month performance fell -43.11%. The stock lost -70.83% in the past year, while it has lost -51.70% so far this year. A look at the trailing 12-month EPS for COMM yields -5.99 with Next year EPS estimates of 1.66. For the next quarter, that number is 0.32. This implies an EPS growth rate of -154.10% for this year and 34.88% for next year. EPS is expected to decline by -2.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -56.70%.
Float and Shares Shorts:
At present, 210.50 million COMM shares are outstanding with a float of 204.92 million shares on hand for trading. On Aug 30, 2023, short shares totaled 12.86 million, which was 6.07% higher than short shares on Jul 30, 2023. In addition to Mr. Charles L. Treadway as the firm’s Pres, CEO & Director, Mr. Kyle D. Lorentzen serves as its Exec. VP & CFO.
Through their ownership of 90.33% of COMM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.66% of COMM, in contrast to 40.10% held by mutual funds. Shares owned by individuals account for 12.92%. As the largest shareholder in COMM with 15.80% of the stake, The Vanguard Group, Inc. holds 33,484,201 shares worth 33,484,201. A second-largest stockholder of COMM, FPR Partners LLC, holds 20,953,018 shares, controlling over 9.89% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in COMM, holding 14,053,636 shares or 6.63% stake. With a 3.48% stake in COMM, the First Trust Dow Jones Internet In is the largest stakeholder. A total of 7,368,357 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.96% of COMM stock, is the second-largest Mutual Fund holder. It holds 6,269,922 shares valued at 20.94 million. Vanguard Small Cap Index Fund holds 2.46% of the stake in COMM, owning 5,205,083 shares worth 17.38 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 Jun 29, 2023, COMM reported revenue of $2.30B and operating income of $101.60M. The EBITDA in the recently reported quarter was $277.50M and diluted EPS was -$0.36.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COMM 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 COMM analysts setting a high price target of $10.50 and a low target of $3.75, the average target price over the next 12 months is $5.57. Based on these targets, COMM could surge 195.77% to reach the target high and rise by 5.63% to reach the target low. Reaching the average price target will result in a growth of 56.9% 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 COMM stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 47,400 shares were bought while 0 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 2,635,319 while 245,511 shares were sold.