Frequency Electronics (NASDAQ:FEIM) Shares Down 8.9% - Time to Sell?

Key Points

• Shares of Frequency Electronics plunged 8.9% to about $52.40 in mid-day trading, with roughly 90,366 shares changing hands — about 52% below its average daily volume.
• The company missed estimates, reporting quarterly EPS of $0.16 versus a consensus of $0.30 and revenue of $16.89M versus expected $19.06M.
• Analysts are mixed: MarketBeat shows a consensus rating of Moderate Buy but an average price target of $43.67 (below the current price), while recent research includes downgrades from Weiss and a move toward "sell" from Wall Street Zen.

Frequency Electronics, Inc. (NASDAQ:FEIM - Get Free Report) shares were down 8.9% during mid-day trading on Monday . The stock traded as low as $53.01 and last traded at $52.3950. Approximately 90,366 shares traded hands during trading, a decline of 52% from the average daily volume of 188,711 shares. The stock had previously closed at $57.53.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on FEIM shares. Weiss Ratings lowered shares of Frequency Electronics from a "buy (b+)" rating to a "hold (c+)" rating in a report on Wednesday, March 18th. Wall Street Zen raised shares of Frequency Electronics from a "strong sell" rating to a "sell" rating in a report on Saturday, April 11th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Frequency Electronics has a consensus rating of "Moderate Buy" and a consensus price target of $43.67.

Frequency Electronics Price Performance

The company has a market capitalization of $520.93 million, a PE ratio of 70.59 and a beta of 0.53. The business has a 50-day moving average of $50.47 and a 200 day moving average of $45.87.

Frequency Electronics (NASDAQ:FEIM - Get Free Report) last released its quarterly 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 for the quarter, compared to analysts' expectations of $19.06 million. Frequency Electronics had a net margin of 10.78% and a return on equity of 12.69%.

Institutional Investors Weigh In On Frequency Electronics

A number of hedge funds have recently bought and sold shares of FEIM. XML Financial LLC grew its stake in shares of Frequency Electronics by 12.6% in the 1st quarter. XML Financial LLC now owns 6,500 shares of the communications equipment provider's stock worth $288,000 after buying an additional 725 shares in the last quarter. Thompson Davis & CO. Inc. increased its holdings in shares of Frequency Electronics by 18.1% in the 1st quarter. Thompson Davis & CO. Inc. now owns 28,615 shares of the communications equipment provider's stock worth $1,266,000 after buying an additional 4,380 shares during the last quarter. Virtu Financial LLC purchased a new stake in shares of Frequency Electronics during the 4th quarter valued at about $980,000. Invesco Ltd. bought a new position in shares of Frequency Electronics in the 4th quarter valued at about $9,446,000. Finally, NewEdge Advisors LLC purchased a new position in Frequency Electronics in the fourth quarter worth about $52,000. Hedge funds and other institutional investors own 58.60% of the company's stock.

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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