Quarterhill (TSE:QTRH) Stock Price Passes Below 50-Day Moving Average - Should You Sell?

Key Points

• Quarterhill shares fell below their 50-day moving average, trading as low as C$2.44 before closing at C$2.55, compared with the moving average of C$2.67.
• Despite the technical weakness, ATB Cormark upgraded Quarterhill to a “top pick” and raised its price target to C$5.00. The stock retains a consensus “Strong Buy” rating from the analyst coverage cited.
• Quarterhill reported a quarterly loss of C$0.07 per share on C$60.40 million in revenue, with negative net margin and return on equity; meanwhile, a director purchased 13,000 shares at C$3.04 each.

Shares of Quarterhill Inc. (TSE:QTRH - Get Free Report) crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of C$2.67 and traded as low as C$2.44. Quarterhill shares last traded at C$2.55, with a volume of 160,317 shares traded.

Analysts Set New Price Targets

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

Quarterhill Stock Up 4.5%

The company has a debt-to-equity ratio of 93.85, a current ratio of 1.19 and a quick ratio of 2.58. The firm's 50-day moving average is C$2.67 and its 200 day moving average is C$1.88. The stock has a market cap of C$309.40 million, a price-to-earnings ratio of -5.93, a price-to-earnings-growth ratio of 0.46 and a beta of 0.09.

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

Insider Buying and Selling

In other news, Director Stephen A. Smith acquired 13,000 shares of the business's stock in a transaction dated Friday, August 14th. The shares were bought at an average cost of C$3.04 per share, for a total transaction of C$39,520.00. Following the acquisition, the director directly owned 30,000 shares in the company, valued at C$91,200. This trade represents a 76.47% increase in their position. 1.72% of the stock is owned by corporate insiders.

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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