Crexendo (NASDAQ:CXDO) Shares Down 3.8% - Should You Sell?

Key Points

• Crexendo shares fell 3.8% to $5.86, below both its 50-day moving average of $6.33 and 200-day moving average of $7.14.
• Analyst sentiment remains favorable, with three Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $10.50, despite B. Riley cutting its target to $9.00.
• The company exceeded quarterly EPS expectations, reporting $0.12 versus $0.10 expected, while CTO David Wang sold 25,000 shares at an average of $6.50; insiders retain a 47.2% ownership stake.

Shares of Crexendo Inc. (NASDAQ:CXDO - Get Free Report) fell 3.8% on Monday. The company traded as low as $5.80 and last traded at $5.86. 227,373 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 312,173 shares. The stock had previously closed at $6.09.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. B. Riley Financial dropped their target price on shares of Crexendo from $10.00 to $9.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Weiss Ratings restated a "hold (c+)" rating on shares of Crexendo in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Crexendo presently has a consensus rating of "Moderate Buy" and an average price target of $10.50.

Crexendo Stock Performance

The firm has a fifty day moving average price of $6.33 and a 200 day moving average price of $7.14. The company has a current ratio of 2.06, a quick ratio of 1.98 and a debt-to-equity ratio of 0.06. The firm has a market cap of $194.84 million, a PE ratio of 41.86 and a beta of 1.11.

Crexendo (NASDAQ:CXDO - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.02. Crexendo had a net margin of 5.31% and a return on equity of 14.34%. The firm had revenue of $24.65 million during the quarter, compared to analyst estimates of $24.65 million. As a group, equities research analysts expect that Crexendo Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Crexendo

In other news, CTO David Wang sold 25,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $6.50, for a total value of $162,500.00. Following the completion of the sale, the chief technology officer owned 534,747 shares of the company's stock, valued at $3,475,855.50. This represents a 4.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 47.20% of the stock is currently owned by company insiders.

Institutional Trading of Crexendo

Institutional investors have recently made changes to their positions in the company. D.A. Davidson & CO. lifted its position in Crexendo by 3.5% in the first quarter. D.A. Davidson & CO. now owns 38,463 shares of the company's stock valued at $237,000 after buying an additional 1,311 shares during the last quarter. Susquehanna Fundamental Investments LLC purchased a new position in Crexendo during the second quarter worth about $82,000. Deutsche Bank AG acquired a new stake in shares of Crexendo during the second quarter valued at about $138,000. NewEdge Advisors LLC increased its position in shares of Crexendo by 75.3% during the second quarter. NewEdge Advisors LLC now owns 47,897 shares of the company's stock valued at $358,000 after acquiring an additional 20,569 shares during the last quarter. Finally, Diversify Wealth Management LLC purchased a new stake in shares of Crexendo in the 1st quarter valued at approximately $139,000. Hedge funds and other institutional investors own 9.53% of the company's stock.

About Crexendo

Crexendo, Inc is a cloud communications technology company that provides unified communications and collaboration services for businesses. Its offerings include cloud-based business phone systems, voice and video communications, messaging, contact center capabilities, collaboration tools and related communications services.

The company also provides technology through its NetSapiens subsidiary, which develops a communications platform used by service providers, resellers and other channel partners to deliver hosted voice and unified communications services.

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