Needham & Company LLC Issues Pessimistic Forecast for Radcom (NASDAQ:RDCM) Stock Price

Key Points

• Needham lowered Radcom’s price target from $18 to $14 but maintained a “Buy” rating, implying approximately 34% upside from the prior close.
• Wall Street Zen downgraded the stock to “Hold”; analysts’ overall consensus remains “Moderate Buy,” with an average target price of $14.
• Radcom shares rose 4% to $10.45, despite the company reporting a quarterly loss of $0.09 per share and revenue of $11.76 million, both below analyst expectations.

Radcom (NASDAQ:RDCM - Get Free Report) had its price target lowered by equities researchers at Needham & Company LLC from $18.00 to $14.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. Needham & Company LLC's target price points to a potential upside of 33.97% from the company's previous close.

Separately, Wall Street Zen cut shares of Radcom from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $14.00.

Radcom Trading Up 4.0%

Radcom stock traded up $0.40 during trading on Wednesday, reaching $10.45. The company had a trading volume of 166,151 shares, compared to its average volume of 150,538. Radcom has a 52 week low of $9.40 and a 52 week high of $16.74. The firm's 50-day simple moving average is $12.84 and its 200 day simple moving average is $12.91. The firm has a market capitalization of $174.93 million, a price-to-earnings ratio of 13.93 and a beta of 0.74.

Radcom (NASDAQ:RDCM - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The technology company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.33). The firm had revenue of $11.76 million for the quarter, compared to analysts' expectations of $15.57 million. Radcom had a net margin of 17.18% and a return on equity of 11.68%. On average, analysts predict that Radcom will post 0.59 earnings per share for the current year.

Hedge Funds Weigh In On Radcom

A number of hedge funds and other institutional investors have recently modified their holdings of RDCM. Raymond James Financial Inc. bought a new position in shares of Radcom during the 2nd quarter worth approximately $34,000. Lazard Asset Management LLC lifted its holdings in shares of Radcom by 171.1% during the second quarter. Lazard Asset Management LLC now owns 8,136 shares of the technology company's stock worth $110,000 after purchasing an additional 5,135 shares during the period. Bank of America Corp DE lifted its stake in Radcom by 93.8% during the 3rd quarter. Bank of America Corp DE now owns 9,014 shares of the technology company's stock valued at $131,000 after acquiring an additional 4,364 shares during the period. Jump Financial LLC acquired a new position in Radcom during the second quarter valued at $165,000. Finally, Boothbay Fund Management LLC purchased a new stake in shares of Radcom in the third quarter worth about $211,000. 48.32% of the stock is currently owned by institutional investors.

About Radcom

Radcom Ltd. NASDAQ: RDCM is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users.

Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services.

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