Crexendo (NASDAQ:CXDO) Stock Price Down 4.4% - Should You Sell?

Key Points

• Crexendo shares fell 4.4% to about $6.10 on Thursday with volume above average, while analysts hold a consensus "Moderate Buy" rating and a $9.40 average price target.
• The company reported quarterly EPS of $0.09, beating estimates by $0.01 although revenue of $18.06M slightly missed expectations, leaving a market cap near $190M and a P/E around 35.9.
• CTO David Tzat‑Kin Wang sold 20,482 shares at $7 and insiders collectively own 47.2% of the company, while institutional ownership is roughly 9.5%.

Crexendo Inc. (NASDAQ:CXDO - Get Free Report) shares fell 4.4% during trading on Thursday . The company traded as low as $6.05 and last traded at $6.10. 164,441 shares changed hands during trading, an increase of 12% from the average session volume of 147,209 shares. The stock had previously closed at $6.38.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CXDO. Needham & Company LLC reaffirmed a "buy" rating on shares of Crexendo in a research report on Monday, March 2nd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Crexendo in a research report on Friday, January 9th. Lake Street Capital upped their price objective on shares of Crexendo from $8.50 to $9.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Finally, Wall Street Zen lowered shares of Crexendo from a "strong-buy" rating to a "buy" rating in a research report on Friday, January 23rd. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $9.40.

Crexendo Stock Down 4.4%

The stock has a market cap of $190.02 million, a price-to-earnings ratio of 35.88 and a beta of 0.94. The company's 50-day moving average is $6.35 and its 200-day moving average is $6.55.

Crexendo (NASDAQ:CXDO - Get Free Report) last posted its quarterly earnings results on Tuesday, March 3rd. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.08 by $0.01. Crexendo had a net margin of 7.44% and a return on equity of 13.74%. The firm had revenue of $18.06 million during the quarter, compared to analyst estimates of $18.14 million. On average, research analysts forecast that Crexendo Inc. will post 0.14 earnings per share for the current year.

Insiders Place Their Bets

In other Crexendo news, CTO David Tzat-Kin Wang sold 20,482 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $7.00, for a total transaction of $143,374.00. Following the sale, the chief technology officer directly owned 629,949 shares of the company's stock, valued at approximately $4,409,643. This represents a 3.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 47.20% of the company's stock.

Institutional Trading of Crexendo

Several large investors have recently added to or reduced their stakes in the company. D.A. Davidson & CO. grew its stake in Crexendo by 4.8% during the fourth quarter. D.A. Davidson & CO. now owns 37,152 shares of the company's stock worth $240,000 after buying an additional 1,717 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Crexendo by 2.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 94,318 shares of the company's stock worth $610,000 after buying an additional 2,260 shares during the last quarter. Bank of America Corp DE grew its stake in Crexendo by 71.7% during the fourth quarter. Bank of America Corp DE now owns 6,174 shares of the company's stock worth $32,000 after buying an additional 2,578 shares during the last quarter. BNP Paribas Financial Markets grew its stake in shares of Crexendo by 172.6% during the third quarter. BNP Paribas Financial Markets now owns 4,394 shares of the company's stock valued at $29,000 after purchasing an additional 2,782 shares during the last quarter. Finally, Independent Advisor Alliance grew its stake in shares of Crexendo by 13.2% during the third quarter. Independent Advisor Alliance now owns 24,725 shares of the company's stock valued at $161,000 after purchasing an additional 2,890 shares during the last quarter. 9.53% of the stock is owned by institutional investors.

About Crexendo

Crexendo, Inc NASDAQ: CXDO is a provider of cloud-based communications and collaboration solutions tailored to businesses of varying sizes. The company's flagship offering, CXsuite, integrates enterprise-grade voice, video conferencing, instant messaging, presence, and contact center functionality into a single platform delivered over the internet. By leveraging hosted infrastructure and a subscription-based model, Crexendo aims to reduce on-premises hardware costs and simplify management for IT teams and resellers.

Crexendo's product portfolio includes a multi-tenant cloud PBX, SIP trunking, session border controllers and an application programming interface (API) suite that allows partners and customers to embed real-time communications into custom workflows.

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