CommScope (NASDAQ:COMM) Trading Down 6% – Here’s Why

CommScope Holding Company, Inc. (NASDAQ:COMM) dropped 6% during trading on Friday . The company traded as low as $5.42 and last traded at $5.48. Approximately 973,298 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 4,142,654 shares. The stock had previously closed at $5.83.

Wall Street Analyst Weigh In

Separately, Morgan Stanley cut shares of CommScope from an “equal weight” rating to an “underweight” rating and set a $5.00 price target on the stock. in a research note on Tuesday, December 17th. Three investment analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $2.50.

CommScope Stock Down 6.9 %

The stock has a market capitalization of $1.17 billion, a P/E ratio of -1.23 and a beta of 1.95. The business has a fifty day moving average price of $5.51 and a 200-day moving average price of $4.14.

CommScope (NASDAQ:COMM) last announced its quarterly earnings results on Thursday, November 7th. The communications equipment provider reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.33 by ($0.38). CommScope had a negative net margin of 18.10% and a negative return on equity of 1.01%. The company had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the previous year, the business earned $0.10 EPS. The business’s revenue was up 2.7% compared to the same quarter last year. On average, equities analysts expect that CommScope Holding Company, Inc. will post -0.77 earnings per share for the current fiscal year.

Institutional Investors Weigh In On CommScope

A number of hedge funds have recently added to or reduced their stakes in the stock. Monarch Alternative Capital LP purchased a new position in shares of CommScope in the 3rd quarter worth $16,623,000. Assenagon Asset Management S.A. purchased a new position in CommScope in the third quarter worth about $11,023,000. Bank of Montreal Can bought a new stake in shares of CommScope during the 3rd quarter valued at about $7,023,000. Two Sigma Advisers LP increased its position in shares of CommScope by 29.3% during the 3rd quarter. Two Sigma Advisers LP now owns 4,303,800 shares of the communications equipment provider’s stock valued at $26,296,000 after purchasing an additional 975,200 shares during the last quarter. Finally, Acadian Asset Management LLC lifted its stake in shares of CommScope by 319.3% in the 2nd quarter. Acadian Asset Management LLC now owns 1,251,705 shares of the communications equipment provider’s stock worth $1,537,000 after purchasing an additional 953,171 shares during the period. 88.04% of the stock is currently owned by hedge funds and other institutional investors.

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.