Frequency Electronics (NASDAQ:FEIM) Trading 8.5% Higher - Time to Buy?

Key Points

• Frequency Electronics shares rose 8.5% on Tuesday, trading as high as $71.39 after closing at $66.72, though volume was well below average at 33,601 shares.
• Recent analyst sentiment is mixed but leans positive: one firm upgraded the stock to strong-buy, while another downgraded it to sell; MarketBeat shows a consensus rating of Buy with an average target price of $43.67.
• The company recently reported weak quarterly results, posting a loss of $0.50 per share versus expectations for a profit and missing revenue estimates as well.

Frequency Electronics, Inc. (NASDAQ:FEIM - Get Free Report)'s stock price rose 8.5% during trading on Tuesday . The company traded as high as $71.39 and last traded at $72.4170. 33,601 shares were traded during trading, a decline of 83% from the average session volume of 203,550 shares. The stock had previously closed at $66.72.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on FEIM shares. Wall Street Zen raised Frequency Electronics from a "strong sell" rating to a "sell" rating in a research note on Saturday, July 4th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Frequency Electronics in a research report on Monday, June 15th. Finally, Freedom Capital raised Frequency Electronics from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $43.67.

Frequency Electronics Stock Performance

The firm's 50 day simple moving average is $65.83 and its 200-day simple moving average is $56.92. The company has a market capitalization of $753.94 million, a price-to-earnings ratio of -851.33 and a beta of 0.71.

Frequency Electronics (NASDAQ:FEIM - Get Free Report) last released its earnings results on Wednesday, July 15th. The communications equipment provider reported ($0.50) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.76). Frequency Electronics had a negative net margin of 1.43% and a negative return on equity of 1.55%. The business had revenue of $15.40 million during the quarter, compared to analysts' expectations of $18.57 million.

Institutional Investors Weigh In On Frequency Electronics

A number of institutional investors have recently bought and sold shares of the business. Invesco Ltd. purchased a new stake in shares of Frequency Electronics in the fourth quarter worth approximately $9,446,000. Next Century Growth Investors LLC grew its position in Frequency Electronics by 200.4% during the fourth quarter. Next Century Growth Investors LLC now owns 219,463 shares of the communications equipment provider's stock valued at $11,816,000 after purchasing an additional 146,397 shares in the last quarter. Millennium Management LLC grew its position in Frequency Electronics by 403.6% during the third quarter. Millennium Management LLC now owns 136,976 shares of the communications equipment provider's stock valued at $4,645,000 after purchasing an additional 109,776 shares in the last quarter. Two Sigma Investments LP increased its stake in Frequency Electronics by 179.4% in the 3rd quarter. Two Sigma Investments LP now owns 139,687 shares of the communications equipment provider's stock valued at $4,737,000 after buying an additional 89,698 shares during the period. Finally, UBS Group AG increased its stake in Frequency Electronics by 63.8% in the 3rd quarter. UBS Group AG now owns 208,334 shares of the communications equipment provider's stock valued at $7,065,000 after buying an additional 81,165 shares during the period. 58.60% of the stock is currently owned by institutional investors and hedge funds.

About Frequency Electronics

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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