Frequency Electronics (NASDAQ:FEIM) Shares Up 10.9% - What's Next?

Key Points

• Shares rose 10.9% to $55.62 on Friday, but the move occurred on very light trading (30,919 shares, down ~83% from average), suggesting the jump came on thin volume.
• The rally happened despite a quarterly miss (EPS $0.16 vs. $0.30 estimate; revenue $16.89M vs. $19.06M) and some analyst downgrades, yet MarketBeat's consensus remains a Moderate Buy with a $43.67 price target—well below the current price.
• Key fundamentals: market cap ≈ $566.6M, P/E ≈ 76.9, 50-day/200-day moving averages of $50.47/$45.76, and institutional ownership of 58.6%.

Shares of Frequency Electronics, Inc. (NASDAQ:FEIM - Get Free Report) shot up 10.9% during trading on Friday . The company traded as high as $55.55 and last traded at $55.62. 30,919 shares changed hands during trading, a decline of 83% from the average session volume of 186,346 shares. The stock had previously closed at $50.16.

Analyst Ratings Changes

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

Frequency Electronics Price Performance

The stock's 50-day moving average price is $50.47 and its 200-day moving average price is $45.76. The company has a market cap of $566.64 million, a P/E ratio of 76.89 and a beta of 0.45.

Frequency Electronics (NASDAQ:FEIM - Get Free Report) last announced its earnings results on Wednesday, March 11th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.30 by ($0.14). The business had revenue of $16.89 million during the quarter, compared to the consensus estimate 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

Institutional investors and hedge funds have recently bought and sold shares of the company. GatePass Capital LLC bought a new stake in Frequency Electronics during the third quarter worth about $848,000. Principal Financial Group Inc. bought a new stake in Frequency Electronics during the third quarter worth about $803,000. Navellier & Associates Inc. bought a new stake in Frequency Electronics during the third quarter worth about $915,000. Alps Advisors Inc. bought a new stake in Frequency Electronics during the third quarter worth about $570,000. Finally, GSA Capital Partners LLP bought a new stake in Frequency Electronics during the third quarter worth about $1,245,000. 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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