Radcom (NASDAQ:RDCM) to Buyback $20.00 million in Outstanding Shares

Key Points

• Radcom authorized a $20 million share buyback, allowing it to repurchase up to 11.8% of its outstanding shares through open-market purchases—an indication management may view the stock as undervalued.
• Analyst sentiment remains mixed: the stock carries a consensus “Hold” rating with a $14.00 target price, while recent reports included Buy, Hold and Sell assessments.
• Radcom’s latest quarter fell short of expectations, reporting a $0.09 adjusted loss per share versus an expected $0.24 profit and revenue of $11.76 million versus a $15.57 million estimate.

Radcom (NASDAQ:RDCM - Get Free Report) declared that its Board of Directors has initiated a share buyback plan on Thursday, September 17th, RTT News reports. The company plans to buyback $20.00 million in shares. This buyback authorization permits the technology company to reacquire up to 11.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

RDCM has been the topic of several analyst reports. Zacks Research lowered shares of Radcom from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 12th. Wall Street Zen upgraded Radcom from a "sell" rating to a "hold" rating in a report on Saturday, September 12th. Needham & Company LLC dropped their price target on Radcom from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Wednesday, August 12th. Finally, Weiss Ratings cut Radcom from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, September 9th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $14.00.

Radcom Stock Performance

NASDAQ RDCM traded up $0.44 on Thursday, reaching $10.59. The company had a trading volume of 225,561 shares, compared to its average volume of 107,392. The firm has a market capitalization of $177.28 million, a price-to-earnings ratio of 25.21 and a beta of 0.74. Radcom has a 1-year low of $9.40 and a 1-year high of $16.74. The company's fifty day moving average is $11.11 and its 200-day moving average is $12.55.

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

Radcom Company Profile

RADCOM Ltd. NASDAQ: RDCM is an Israel-based provider of network intelligence and service assurance solutions for telecommunications operators. The company helps communications service providers monitor, analyze and optimize mobile and fixed networks, with a focus on cloud-native, virtualized and 5G network environments.

RADCOM's portfolio includes solutions for network visibility, service quality monitoring, performance management and automated troubleshooting. Its software is designed to collect and analyze data from complex network infrastructures, enabling operators to identify service issues, improve customer experiences and support the rollout and operation of new network technologies.

Founded in 1991, RADCOM serves telecommunications companies and network operators in international markets.

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