CommScope (NASDAQ:COMM) Reaches New 52-Week 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)'s share price hit a new 52-week high during mid-day 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 the consensus estimate of $0.24 by $0.20. CommScope had a negative return on equity of 5.96% and a net margin of 16.61%. The firm had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter last year, the company earned $0.34 earnings per share. The business's revenue for the quarter was up 31.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on COMM. Raymond James Financial raised CommScope from an "underperform" rating to an "outperform" rating and set a $19.00 target price on the stock in a research note on Tuesday. Deutsche Bank Aktiengesellschaft lifted their target price on CommScope from $6.00 to $7.50 and gave the company a "hold" rating in a research note on Tuesday, June 24th. Northland Securities set a $20.00 target price on CommScope in a research note on Tuesday. Wolfe Research started coverage on CommScope in a report on Monday, July 7th. They set a "peer perform" rating for the company. Finally, Morgan Stanley upgraded CommScope from an "underweight" rating to an "equal weight" rating and raised their price target for the company from $4.00 to $17.00 in a report on Tuesday. Four equities research analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $13.70.

Hedge Funds Weigh In On CommScope

A number of institutional investors and hedge funds have recently modified their holdings of COMM. Goldman Sachs Group Inc. boosted its holdings in shares of CommScope by 244.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 9,498,510 shares of the communications equipment provider's stock worth $50,437,000 after purchasing an additional 6,743,929 shares during the period. Apollo Management Holdings L.P. purchased a new position in shares of CommScope in the 1st quarter worth approximately $32,806,000. Deutsche Bank AG boosted its holdings in shares of CommScope by 182.2% in the 4th quarter. Deutsche Bank AG now owns 9,289,013 shares of the communications equipment provider's stock worth $48,396,000 after purchasing an additional 5,996,931 shares during the period. LMR Partners LLP purchased a new position in shares of CommScope in the 4th quarter worth approximately $14,328,000. Finally, Nuveen LLC purchased a new position in shares of CommScope in the 1st quarter worth approximately $13,507,000. Hedge funds and other institutional investors own 88.04% of the company's stock.

CommScope Stock Performance

The stock has a market cap of $3.09 billion, a PE ratio of 5.33, a PEG ratio of 0.42 and a beta of 2.38. The stock has a fifty day moving average price of $7.51 and a 200 day moving average price of $5.83.

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.