CommScope (NASDAQ:COMM) Shares Gap Up on Strong Earnings

CommScope Holding Company, Inc. (NASDAQ:COMM)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $3.74, but opened at $4.50. CommScope shares last traded at $4.30, with a volume of 1,641,101 shares trading hands.

The communications equipment provider reported $0.14 EPS for the quarter, beating analysts’ consensus estimates of $0.07 by $0.07. The firm had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.11 billion. CommScope had a negative net margin of 18.10% and a negative return on equity of 1.01%. The business’s revenue for the quarter was up 23.5% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.08) earnings per share.

Analyst Upgrades and Downgrades

COMM has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $7.00 price target on shares of CommScope in a research note on Thursday, February 27th. JPMorgan Chase & Co. upgraded shares of CommScope from an “underweight” rating to a “neutral” rating and set a $5.00 target price for the company in a research note on Tuesday, January 14th. Raymond James downgraded CommScope from a “market perform” rating to an “underperform” rating in a research note on Monday, January 6th. Finally, StockNews.com raised CommScope from a “hold” rating to a “buy” rating in a report on Friday, February 28th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $4.75.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Aster Capital Management DIFC Ltd bought a new stake in CommScope during the fourth quarter valued at about $27,000. Sterling Capital Management LLC lifted its holdings in CommScope by 826.0% in the 4th quarter. Sterling Capital Management LLC now owns 6,760 shares of the communications equipment provider’s stock worth $35,000 after purchasing an additional 6,030 shares in the last quarter. Tower Research Capital LLC TRC boosted its stake in CommScope by 67.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 9,986 shares of the communications equipment provider’s stock worth $52,000 after purchasing an additional 4,026 shares during the period. Sciencast Management LP purchased a new stake in CommScope during the 4th quarter valued at approximately $56,000. Finally, Ballentine Partners LLC bought a new stake in shares of CommScope during the fourth quarter valued at approximately $58,000. Hedge funds and other institutional investors own 88.04% of the company’s stock.

CommScope Stock Up 4.6 %

The stock has a market cap of $1.03 billion, a PE ratio of -1.08, a P/E/G ratio of 0.41 and a beta of 1.98. The firm’s fifty day moving average price is $4.64 and its 200 day moving average price is $5.11.

About CommScope

CommScope Holding Company, Inc provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments.