Frequency Electronics (NASDAQ:FEIM) Stock Price Down 12.2% - Should You Sell?

Key Points

• Frequency Electronics shares fell 12.2% to about $59.87, below both their 50-day moving average of $73.52 and 200-day moving average of $67.07. The stock carries a high P/E ratio of 246.40.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating from four analysts and an average price target of $59.67, although Freedom Broker downgraded the stock to “Hold.”
• The company recently exceeded quarterly expectations, reporting EPS of $0.41 versus a $0.15 estimate and revenue of $23.45 million versus $17.85 million expected. Institutional investors own 58.6% of the shares, with several firms recently increasing their positions.

Frequency Electronics, Inc. (NASDAQ:FEIM - Get Free Report)'s stock price traded down 12.2% on Thursday. The stock traded as low as $59.54 and last traded at $59.8740. 205,098 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 248,143 shares. The stock had previously closed at $68.19.

Analyst Ratings Changes

FEIM has been the topic of a number of analyst reports. Freedom Broker cut Frequency Electronics from a "buy" rating to a "hold" rating and raised their price target for the company from $77.00 to $91.00 in a research note on Monday, September 14th. Weiss Ratings upgraded shares of Frequency Electronics from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Finally, Wall Street Zen raised Frequency Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, October 10th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $59.67.

Frequency Electronics Stock Performance

The company's fifty day simple moving average is $73.52 and its two-hundred day simple moving average is $67.07. The stock has a market capitalization of $694.42 million, a PE ratio of 246.40 and a beta of 0.65.

Frequency Electronics (NASDAQ:FEIM - Get Free Report) last posted its quarterly earnings data on Thursday, September 10th. The communications equipment provider reported $0.41 EPS for the quarter, topping analysts' consensus estimates of $0.15 by $0.26. Frequency Electronics had a return on equity of 3.63% and a net margin of 3.68%. The firm had revenue of $23.45 million during the quarter, compared to analysts' expectations of $17.85 million.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in FEIM. BlackRock Inc. bought a new position in Frequency Electronics in the second quarter worth about $34,273,000. Dimensional Fund Advisors LP lifted its position in Frequency Electronics by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 257,402 shares of the communications equipment provider's stock valued at $11,391,000 after purchasing an additional 6,948 shares during the last quarter. Sei Investments Co. lifted its position in Frequency Electronics by 93.1% in the 1st quarter. Sei Investments Co. now owns 91,706 shares of the communications equipment provider's stock valued at $4,059,000 after purchasing an additional 44,218 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its stake in Frequency Electronics by 1.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 57,350 shares of the communications equipment provider's stock valued at $2,538,000 after purchasing an additional 541 shares during the period. Finally, Raiffeisen Bank International AG boosted its stake in Frequency Electronics by 350.0% during the 2nd quarter. Raiffeisen Bank International AG now owns 54,000 shares of the communications equipment provider's stock valued at $3,336,000 after purchasing an additional 42,000 shares during the period. 58.60% of the stock is currently owned by institutional investors.

Frequency Electronics Company Profile

Frequency Electronics, Inc NASDAQ: FEIM develops and manufactures precision timing and frequency-control products for demanding communications, aerospace, defense and commercial applications. Its technologies are designed to generate, stabilize and distribute highly accurate timing signals used by electronic systems and networks.

The company's product portfolio includes crystal oscillators, frequency synthesizers, timing and synchronization systems, GPS/GNSS-disciplined timing products, atomic frequency references and related components.

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