Comtech Telecomm. (NASDAQ:CMTL) Rating Lowered to Hold at Zacks Investment Research

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, reports.

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. “

A number of other analysts have also issued reports on the stock. BidaskClub upgraded shares of Comtech Telecomm. from a “strong sell” rating to a “sell” rating in a research report on Tuesday. ValuEngine upgraded shares of Comtech Telecomm. from a “sell” rating to a “hold” rating in a report on Friday, June 7th. Finally, Noble Financial restated a “buy” rating and set a $38.00 target price on shares of Comtech Telecomm. in a report on Wednesday, March 13th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $36.00.

Shares of CMTL traded down $0.26 during mid-day trading on Wednesday, hitting $26.26. 85,631 shares of the company’s stock were exchanged, compared to its average volume of 168,728. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.28 and a current ratio of 1.79. The company has a market capitalization of $656.79 million, a price-to-earnings ratio of 35.01, a price-to-earnings-growth ratio of 4.46 and a beta of 1.30. Comtech Telecomm. has a fifty-two week low of $20.94 and a fifty-two week high of $36.94.

Comtech Telecomm. (NASDAQ:CMTL) last issued its earnings results on Wednesday, June 5th. The communications equipment provider reported $0.42 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.21 by $0.21. Comtech Telecomm. had a net margin of 3.98% and a return on equity of 6.88%. The company had revenue of $170.40 million during the quarter, compared to analysts’ expectations of $162.30 million. During the same period last year, the company posted $0.34 earnings per share. The firm’s quarterly revenue was up 15.2% compared to the same quarter last year. Equities research analysts forecast that Comtech Telecomm. will post 1.22 EPS for the current year.

Large investors have recently modified their holdings of the company. Resources Investment Advisors Inc. raised its position in Comtech Telecomm. by 56.9% in the 4th quarter. Resources Investment Advisors Inc. now owns 1,765 shares of the communications equipment provider’s stock valued at $43,000 after buying an additional 640 shares during the last quarter. Investors Research Corp bought a new position in Comtech Telecomm. in the 1st quarter worth about $56,000. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. bought a new stake in shares of Comtech Telecomm. during the 4th quarter valued at about $89,000. ClariVest Asset Management LLC bought a new stake in shares of Comtech Telecomm. during the 4th quarter valued at about $148,000. Finally, Metropolitan Life Insurance Co. NY boosted its position in shares of Comtech Telecomm. by 434.0% during the 4th quarter. Metropolitan Life Insurance Co. NY now owns 7,972 shares of the communications equipment provider’s stock valued at $194,000 after acquiring an additional 6,479 shares during the last quarter. 86.95% of the stock is owned by institutional investors.

About Comtech Telecomm.

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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