Radcom (NASDAQ:RDCM) Upgraded to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Radcom from “strong sell” to “hold,” while analysts overall maintain an average “hold” rating and a $14.00 price target.
• Radcom’s latest quarterly results missed expectations, reporting a $0.09 loss per share versus the expected $0.24 profit and revenue of $11.76 million against estimates of $15.57 million.
• The board authorized a $20 million stock buyback, allowing the company to repurchase up to 11.8% of its outstanding shares; the stock opened at $10.22, near its 52-week low.

Radcom (NASDAQ:RDCM - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

Other analysts also recently issued research reports about the stock. Wall Street Zen raised shares of Radcom from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Weiss Ratings lowered shares of Radcom from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 9th. Finally, Needham & Company LLC decreased their price target on shares of Radcom from $18.00 to $14.00 and set a "buy" rating for the company in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Radcom presently has an average rating of "Hold" and an average target price of $14.00.

Radcom Price Performance

Shares of RDCM stock opened at $10.22 on Monday. Radcom has a 1-year low of $9.40 and a 1-year high of $16.74. The stock's fifty day moving average price is $10.21 and its 200 day moving average price is $12.45. The company has a market cap of $171.08 million, a price-to-earnings ratio of 22.60 and a beta of 0.76.

Radcom (NASDAQ:RDCM - Get Free Report) last announced its earnings results on Wednesday, August 12th. The technology company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.33). The business had revenue of $11.76 million for the quarter, compared to analyst estimates of $15.57 million. Radcom had a net margin of 10.47% and a return on equity of 6.51%. As a group, equities research analysts anticipate that Radcom will post -0.03 earnings per share for the current year.

Radcom announced that its board has authorized a stock buyback plan on Thursday, September 17th that permits the company to buy back $20.00 million in outstanding shares. This buyback authorization permits the technology company to buy up to 11.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Private Advisor Group LLC lifted its stake in Radcom by 2.1% during the 1st quarter. Private Advisor Group LLC now owns 351,019 shares of the technology company's stock valued at $4,268,000 after acquiring an additional 7,372 shares during the period. Janney Montgomery Scott LLC boosted its holdings in shares of Radcom by 1.7% in the 1st quarter. Janney Montgomery Scott LLC now owns 327,479 shares of the technology company's stock valued at $3,982,000 after acquiring an additional 5,380 shares during the last quarter. NewEdge Advisors LLC purchased a new stake in shares of Radcom in the 1st quarter valued at $369,000. Lazard Asset Management LLC acquired a new stake in shares of Radcom in the first quarter worth $236,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in shares of Radcom in the second quarter worth $35,000. 48.32% of the stock is owned by institutional investors and hedge funds.

Radcom Company Profile

Radcom Ltd. NASDAQ: RDCM is an Israel-based provider of cloud-native service assurance and network intelligence solutions for communication service providers. Founded in 1991, the company develops software that helps telecommunications operators monitor network performance, identify service issues and improve customer experience across complex, evolving networks.

Radcom's product portfolio is designed to support 4G and 5G mobile networks, cloud-based network functions and other virtualized telecommunications environments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.