Traders Buy High Volume of Call Options on Comtech Telecommunications (NASDAQ:CMTL)

Comtech Telecommunications Corp. (NASDAQ:CMTL) was the target of some unusual options trading activity on Thursday. Stock investors purchased 1,015 call options on the stock. This represents an increase of 1,620% compared to the typical volume of 59 call options.

Shares of Comtech Telecommunications stock opened at $21.38 on Friday. The company has a quick ratio of 1.11, a current ratio of 1.57 and a debt-to-equity ratio of 0.45. Comtech Telecommunications has a 52 week low of $12.96 and a 52 week high of $30.40. The firm has a 50 day moving average price of $24.33. The firm has a market capitalization of $557.03 million, a PE ratio of -6.40 and a beta of 1.93.

Comtech Telecommunications (NASDAQ:CMTL) last announced its earnings results on Monday, June 7th. The communications equipment provider reported $0.06 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.01) by $0.07. Comtech Telecommunications had a positive return on equity of 3.34% and a negative net margin of 14.54%. The company had revenue of $139.38 million for the quarter, compared to analysts’ expectations of $140.55 million. During the same quarter in the previous year, the firm earned $0.05 earnings per share. Comtech Telecommunications’s quarterly revenue was up 3.1% on a year-over-year basis. As a group, analysts expect that Comtech Telecommunications will post 1 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 20th. Stockholders of record on Wednesday, July 21st will be given a $0.10 dividend. The ex-dividend date is Tuesday, July 20th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.87%. Comtech Telecommunications’s dividend payout ratio (DPR) is currently 51.95%.

Several hedge funds have recently added to or reduced their stakes in CMTL. Ensign Peak Advisors Inc purchased a new position in shares of Comtech Telecommunications during the first quarter worth approximately $30,000. Quantbot Technologies LP bought a new position in shares of Comtech Telecommunications in the 1st quarter worth about $42,000. Vantage Consulting Group Inc bought a new stake in shares of Comtech Telecommunications in the 4th quarter worth approximately $49,000. Captrust Financial Advisors bought a new stake in Comtech Telecommunications in the fourth quarter worth $116,000. Finally, Paloma Partners Management Co purchased a new stake in Comtech Telecommunications during the 1st quarter valued at about $208,000. Institutional investors own 78.92% of the company’s stock.

CMTL has been the subject of several research reports. Northland Securities cut their price objective on shares of Comtech Telecommunications from $31.00 to $28.00 and set an “outperform” rating for the company in a research report on Wednesday. Citigroup lowered their target price on shares of Comtech Telecommunications from $29.00 to $26.00 and set a “neutral” rating on the stock in a report on Wednesday. Zacks Investment Research cut shares of Comtech Telecommunications from a “buy” rating to a “hold” rating in a research note on Wednesday, March 24th. Finally, Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell decreased their price objective on shares of Comtech Telecommunications from $29.00 to $26.00 and set a “neutral” rating on the stock in a research note on Wednesday. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and an average target price of $30.00.

Comtech Telecommunications Company Profile

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally. It operates in two segments, Commercial Solutions and Government Solutions. The Commercial Solutions segment offers satellite ground station technologies, including modems, amplifiers, frequency converters, and network software to modulate, demodulate, and amplify signals, as well as to carry voice, video, and/or data over networks; and public safety and location technologies covering 911 call routing solutions that allow cellular carriers and over the Internet carriers to deliver emergency calls to public safety emergency call centers.

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