CommScope (NASDAQ:COMM) Reaches New 1-Year High After Earnings Beat

Key Points

• CommScope's stock reached a new 52-week high on Monday, trading at $13.83, reflecting a significant increase from its previous closing price of $7.79.
• Analysts have mixed views on CommScope, with ratings ranging from "outperform" to "sell," while the average price target is currently $7.38.
• Institutional investors hold a substantial 88.04% of CommScope's stock, indicating strong interest and investment in the company.

CommScope Holding Company, Inc. (NASDAQ:COMM - Get Free Report) hit a new 52-week high during trading on Monday following a stronger than expected earnings report. The company traded as high as $13.83 and last traded at $13.57, with a volume of 15048062 shares traded. The stock had previously closed at $7.79.

The communications equipment provider reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.20. The company had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.27 billion. CommScope had a negative return on equity of 6.29% and a net margin of 16.61%. The firm's quarterly revenue was up 31.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.34 earnings per share.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on COMM shares. Northland Capmk raised CommScope from a "hold" rating to a "strong-buy" rating in a research note on Monday. Morgan Stanley raised CommScope from an "underweight" rating to an "equal weight" rating and boosted their price target for the company from $4.00 to $17.00 in a research note on Tuesday. Citigroup raised CommScope to an "outperform" rating in a research note on Monday. Wall Street Zen lowered CommScope from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, May 13th. Finally, Wolfe Research began coverage on CommScope in a research note on Monday, July 7th. They issued a "peer perform" rating on the stock. Four research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $14.75.

Hedge Funds Weigh In On CommScope

A number of institutional investors have recently modified their holdings of COMM. Raymond James Financial Inc. acquired a new position in shares of CommScope during the fourth quarter worth approximately $138,000. Pictet Asset Management Holding SA acquired a new position in shares of CommScope during the fourth quarter worth approximately $171,000. Franklin Resources Inc. raised its position in shares of CommScope by 73.7% during the fourth quarter. Franklin Resources Inc. now owns 233,884 shares of the communications equipment provider's stock worth $1,219,000 after purchasing an additional 99,238 shares during the period. Geode Capital Management LLC raised its position in shares of CommScope by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 5,126,442 shares of the communications equipment provider's stock worth $26,715,000 after purchasing an additional 14,576 shares during the period. Finally, Wells Fargo & Company MN raised its position in shares of CommScope by 23.8% during the fourth quarter. Wells Fargo & Company MN now owns 135,532 shares of the communications equipment provider's stock worth $706,000 after purchasing an additional 26,016 shares during the period. 88.04% of the stock is owned by institutional investors and hedge funds.

CommScope Stock Up 3.9%

The business has a 50-day moving average price of $8.04 and a two-hundred day moving average price of $6.02. The company has a market capitalization of $3.45 billion, a price-to-earnings ratio of 5.86, a price-to-earnings-growth ratio of 0.44 and a beta of 2.38.

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.