Climb Global Solutions (NASDAQ:CLMB) Announces Quarterly Earnings Results

Key Points

• Earnings miss but revenue beat: Climb reported $0.19 EPS vs. $0.23 expected (a $0.04 miss) while beating revenue estimates with $182.38 million vs. $151.34 million; the quarter showed a net margin of 3.27% and a return on equity of 21.86%.
• Market view and valuation: Shares traded at $21.27 after the report with a market cap of $391.8M and a P/E of 18.3, and analysts have an average rating of "Moderate Buy" with an average price target of $31.00.
• Insider sale and institutional interest: CEO Dale Richard Foster sold 34,000 shares at about $20.13 (reducing his stake ~10.34%); insiders hold 6.10% while institutional investors own 49.72%, with several hedge funds recently increasing positions.

Climb Global Solutions (NASDAQ:CLMB - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.04), FiscalAI reports. The company had revenue of $182.38 million for the quarter, compared to analyst estimates of $151.34 million. Climb Global Solutions had a return on equity of 21.86% and a net margin of 3.27%.

Climb Global Solutions Price Performance

Climb Global Solutions stock traded up $0.08 during trading hours on Wednesday, hitting $21.27. The company had a trading volume of 158,339 shares, compared to its average volume of 261,128. The firm has a market capitalization of $391.79 million, a P/E ratio of 18.30, a price-to-earnings-growth ratio of 1.32 and a beta of 1.20. The firm's fifty day moving average is $21.91 and its 200-day moving average is $26.32. Climb Global Solutions has a fifty-two week low of $18.91 and a fifty-two week high of $36.26.

Analyst Upgrades and Downgrades

CLMB has been the topic of several recent analyst reports. Northcoast Research upgraded Climb Global Solutions to a "strong-buy" rating in a report on Monday, March 23rd. Barrington Research restated an "outperform" rating and set a $30.00 price objective on shares of Climb Global Solutions in a report on Tuesday, April 21st. Zacks Research upgraded Climb Global Solutions from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 6th. Wall Street Zen upgraded Climb Global Solutions from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Finally, Northland Securities assumed coverage on Climb Global Solutions in a report on Monday, March 23rd. They issued an "outperform" rating and a $32.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $31.00.

Insiders Place Their Bets

In other Climb Global Solutions news, CEO Dale Richard Foster sold 34,000 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $20.13, for a total value of $684,250.00. Following the transaction, the chief executive officer owned 294,760 shares in the company, valued at approximately $5,932,045. This represents a 10.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 6.10% of the company's stock.

Hedge Funds Weigh In On Climb Global Solutions

A number of hedge funds have recently added to or reduced their stakes in CLMB. Wasatch Advisors LP increased its holdings in Climb Global Solutions by 29.5% in the second quarter. Wasatch Advisors LP now owns 281,131 shares of the company's stock worth $30,056,000 after buying an additional 63,975 shares during the last quarter. Invesco Ltd. increased its holdings in Climb Global Solutions by 2,446.4% in the third quarter. Invesco Ltd. now owns 65,263 shares of the company's stock worth $8,800,000 after buying an additional 62,700 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in Climb Global Solutions by 221.5% in the second quarter. JPMorgan Chase & Co. now owns 32,914 shares of the company's stock worth $3,519,000 after buying an additional 22,676 shares during the last quarter. Geode Capital Management LLC increased its holdings in Climb Global Solutions by 20.3% in the fourth quarter. Geode Capital Management LLC now owns 129,194 shares of the company's stock worth $13,283,000 after buying an additional 21,781 shares during the last quarter. Finally, Polar Asset Management Partners Inc. increased its holdings in Climb Global Solutions by 36.2% in the fourth quarter. Polar Asset Management Partners Inc. now owns 71,868 shares of the company's stock worth $7,387,000 after buying an additional 19,087 shares during the last quarter. Institutional investors and hedge funds own 49.72% of the company's stock.

Climb Global Solutions Company Profile

Climb Global Solutions Inc operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter.

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