Frequency Electronics (NASDAQ:FEIM) Shares Down 6.8% - Here's What Happened

Key Points

• Shares fell 6.8% midday to about $50.54 (low $50.01) on light volume of 23,738 shares, an 88% decline versus the average session volume.
• The company missed quarterly estimates, reporting EPS of $0.16 vs. $0.30 expected and revenue of $16.89M vs. $19.06M, while posting a 10.78% net margin and 12.69% ROE.
• Analyst views are mixed: the consensus is a "Moderate Buy" with a $43.67 price target, but several firms have recently downgraded the stock and issued targets in the $42–$46 range.

Frequency Electronics, Inc. (NASDAQ:FEIM - Get Free Report) traded down 6.8% during mid-day trading on Tuesday . The company traded as low as $50.01 and last traded at $50.5360. 23,738 shares traded hands during trading, a decline of 88% from the average session volume of 195,596 shares. The stock had previously closed at $54.25.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on FEIM shares. Wall Street Zen downgraded shares of Frequency Electronics from a "hold" rating to a "sell" rating in a report on Sunday, December 14th. Craig Hallum reaffirmed a "buy" rating and set a $46.00 price objective on shares of Frequency Electronics in a report on Friday, December 12th. Loop Capital set a $42.00 price objective on shares of Frequency Electronics in a report on Tuesday, December 16th. Finally, Weiss Ratings downgraded shares of Frequency Electronics from a "buy (b+)" rating to a "hold (c+)" rating in a report on Wednesday, March 18th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $43.67.

Frequency Electronics Trading Down 0.5%

The company has a market capitalization of $531.36 million, a price-to-earnings ratio of 72.05 and a beta of 0.45. The firm's fifty day simple moving average is $49.34 and its two-hundred day simple moving average is $43.36.

Frequency Electronics (NASDAQ:FEIM - Get Free Report) last posted its earnings results on Wednesday, March 11th. The communications equipment provider reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.14). The firm had revenue of $16.89 million during the quarter, compared to analyst estimates of $19.06 million. Frequency Electronics had a net margin of 10.78% and a return on equity of 12.69%.

Hedge Funds Weigh In On Frequency Electronics

Several institutional investors and hedge funds have recently bought and sold shares of the company. Virtu Financial LLC acquired a new stake in shares of Frequency Electronics during the fourth quarter valued at about $980,000. Invesco Ltd. acquired a new stake in shares of Frequency Electronics during the fourth quarter valued at about $9,446,000. NewEdge Advisors LLC acquired a new stake in shares of Frequency Electronics during the fourth quarter valued at about $52,000. XTX Topco Ltd increased its position in shares of Frequency Electronics by 200.4% during the fourth quarter. XTX Topco Ltd now owns 18,941 shares of the communications equipment provider's stock valued at $1,020,000 after acquiring an additional 12,636 shares during the last quarter. Finally, Susquehanna Portfolio Strategies LLC acquired a new stake in shares of Frequency Electronics during the fourth quarter valued at about $248,000. 58.60% of the stock is currently owned by institutional investors and hedge funds.

Frequency Electronics Company Profile

Frequency Electronics, Inc NASDAQ: FEIM is a U.S.-based designer and manufacturer of precision frequency control products and timing solutions. The company's portfolio includes oven-controlled crystal oscillators (OCXOs), atomic frequency standards such as rubidium oscillators, GPS-disciplined oscillators (GPSDOs), microwave synthesizers, and integrated timing subsystems. These products are used to provide stable and accurate frequency and time references for applications that demand high performance and reliability.

FEI serves a broad range of markets, including telecommunications, aerospace and defense, satellite and space systems, test and measurement equipment, and critical infrastructure.

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