Crexendo (NASDAQ:CXDO) Issues Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Crexendo reported quarterly earnings of $0.07 per share, surpassing estimates by $0.01.
• The stock witnessed a 1.0% decline, trading at $5.81, while also experiencing notable insider selling, particularly by CTO David Tzat-Kin Wang, who sold over 392,610 shares.
• Analysts have a consensus buy rating for Crexendo, with price targets around $8.38.

Crexendo (NASDAQ:CXDO - Get Free Report) announced its earnings results on Tuesday. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.01, Zacks reports. Crexendo had a return on equity of 11.33% and a net margin of 4.75%. The company had revenue of $16.55 million during the quarter, compared to the consensus estimate of $16.27 million.

Crexendo Stock Down 8.1%

NASDAQ:CXDO traded down $0.53 during trading hours on Friday, reaching $6.10. 370,324 shares of the stock were exchanged, compared to its average volume of 195,406. The stock has a market capitalization of $183.92 million, a P/E ratio of 61.20 and a beta of 0.98. The firm has a 50 day simple moving average of $5.75 and a 200-day simple moving average of $5.60. Crexendo has a 52 week low of $3.75 and a 52 week high of $7.34.

Insider Buying and Selling at Crexendo

In related news, CTO David Tzat-Kin Wang sold 392,610 shares of the firm's stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $4.90, for a total transaction of $1,923,789.00. Following the transaction, the chief technology officer directly owned 445,995 shares in the company, valued at $2,185,375.50. This trade represents a 46.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last ninety days, insiders sold 406,210 shares of company stock valued at $2,012,473. 56.20% of the stock is currently owned by insiders.

Institutional Trading of Crexendo

A number of institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC boosted its holdings in shares of Crexendo by 120.1% in the 2nd quarter. Geode Capital Management LLC now owns 318,001 shares of the company's stock valued at $1,930,000 after buying an additional 173,530 shares during the period. Goldman Sachs Group Inc. acquired a new stake in Crexendo during the first quarter worth about $431,000. NewEdge Advisors LLC lifted its holdings in Crexendo by 28.1% in the first quarter. NewEdge Advisors LLC now owns 74,125 shares of the company's stock worth $361,000 after acquiring an additional 16,267 shares during the last quarter. Finally, Bank of America Corp DE boosted its stake in Crexendo by 71.7% in the fourth quarter. Bank of America Corp DE now owns 6,174 shares of the company's stock valued at $32,000 after acquiring an additional 2,578 shares during the period. 9.53% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages recently commented on CXDO. Lake Street Capital increased their price target on Crexendo from $8.00 to $8.50 and gave the company a "buy" rating in a report on Wednesday. Needham & Company LLC initiated coverage on Crexendo in a research report on Tuesday, July 1st. They issued a "buy" rating and a $8.00 target price on the stock. Wall Street Zen downgraded shares of Crexendo from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 5th. Finally, D. Boral Capital lifted their price target on shares of Crexendo from $10.00 to $11.00 and gave the stock a "buy" rating in a research note on Wednesday. Six investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $8.60.

About Crexendo

Crexendo, Inc provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support.