Quarterhill (TSE:QTRH) Stock Falls 2.9% - Here's Why

Key Points

• Quarterhill shares fell 2.9% to C$2.69 in mid-day trading, with volume below the stock’s average session level.
• Despite the decline, ATB Cormark upgraded Quarterhill to “top pick” and raised its price target to C$5.00; the stock has a consensus “Strong Buy” rating.
• The company reported a quarterly loss of C$0.07 per share on C$60.4 million in revenue, alongside negative profitability metrics. Director Stephen A. Smith bought 13,000 shares, increasing his holdings by 76.47%.

Shares of Quarterhill Inc. (TSE:QTRH - Get Free Report) dropped 2.9% during mid-day trading on Friday. The company traded as low as C$2.64 and last traded at C$2.69. 166,206 shares were traded during mid-day trading, a decline of 25% from the average session volume of 221,879 shares. The stock had previously closed at C$2.77.

Analyst Upgrades and Downgrades

Separately, ATB Cormark Capital Markets upgraded Quarterhill from an "outperform" rating to a "top pick" rating and increased their target price for the company from C$4.40 to C$5.00 in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, According to data from MarketBeat, Quarterhill has a consensus rating of "Strong Buy" and an average price target of C$5.00.

Quarterhill Stock Down 2.9%

The firm's 50 day moving average is C$2.73 and its two-hundred day moving average is C$2.05. The stock has a market cap of C$382.52 million, a price-to-earnings ratio of -6.26, a P/E/G ratio of 0.46 and a beta of -0.06. The company has a current ratio of 1.19, a quick ratio of 2.58 and a debt-to-equity ratio of 93.85.

Quarterhill (TSE:QTRH - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The company reported C($0.07) earnings per share (EPS) for the quarter. The firm had revenue of C$60.40 million for the quarter. Quarterhill had a negative return on equity of 56.86% and a negative net margin of 31.81%. On average, sell-side analysts predict that Quarterhill Inc. will post 0.0200567 EPS for the current year.

Insider Activity

In other news, Director Stephen A. Smith bought 13,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average price of C$3.04 per share, for a total transaction of C$39,520.00. Following the completion of the transaction, the director owned 30,000 shares in the company, valued at C$91,200. The trade was a 76.47% increase in their ownership of the stock. Insiders own 1.72% of the company's stock.

About Quarterhill

Quarterhill is a global leader in the Intelligent Transportation System (ITS) industry, advancing mobility through smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel. Each year, Quarterhill's platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic to improve travel for everyone. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill's platform delivers automation and predictive insight to help agencies manage transportation networks more efficiently.

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