Radcom (NASDAQ:RDCM) Share Price Crosses Below 200 Day Moving Average - What's Next?

Key Points

• Radcom shares fell below their 200-day moving average, trading as low as $10.04 versus the $12.50 average, and last changed hands at $10.12.
• Analyst sentiment is mixed but leans toward caution: the consensus rating is Hold with a $14.00 target, while recent actions included a target-price cut and a downgrade to “strong sell.”
• Radcom missed quarterly expectations, reporting a $0.09 loss per share and $11.76 million in revenue versus estimates of $0.24 EPS and $15.57 million revenue; however, the board authorized a $20 million share buyback, covering up to 11.8% of outstanding shares.

Radcom Ltd. (NASDAQ:RDCM - Get Free Report) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $12.50 and traded as low as $10.04. Radcom shares last traded at $10.12, with a volume of 64,542 shares trading hands.

Analyst Upgrades and Downgrades

RDCM has been the subject of several recent research reports. Needham & Company LLC decreased their target price on shares of Radcom from $18.00 to $14.00 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Weiss Ratings cut Radcom from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, September 9th. Wall Street Zen upgraded Radcom from a "sell" rating to a "hold" rating in a report on Saturday, September 12th. Finally, Zacks Research lowered shares of Radcom from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 12th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $14.00.

Radcom Price Performance

The stock's fifty day simple moving average is $10.60 and its 200-day simple moving average is $12.50. The company has a market capitalization of $169.41 million, a P/E ratio of 24.10 and a beta of 0.74.

Radcom (NASDAQ:RDCM - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The technology company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of $0.24 by ($0.33). Radcom had a return on equity of 6.51% and a net margin of 10.47%.The business had revenue of $11.76 million during the quarter, compared to the consensus estimate of $15.57 million. On average, research analysts predict that Radcom Ltd. will post -0.03 earnings per share for the current year.

Radcom announced that its board has initiated a share buyback plan on Thursday, September 17th that allows the company to repurchase $20.00 million in outstanding shares. This repurchase authorization allows the technology company to reacquire up to 11.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio bought a new position in shares of Radcom during the 2nd quarter worth about $35,000. Janney Montgomery Scott LLC lifted its stake in shares of Radcom by 1.7% in the first quarter. Janney Montgomery Scott LLC now owns 327,479 shares of the technology company's stock valued at $3,982,000 after buying an additional 5,380 shares during the period. Private Advisor Group LLC grew its position in Radcom by 2.1% during the first quarter. Private Advisor Group LLC now owns 351,019 shares of the technology company's stock worth $4,268,000 after buying an additional 7,372 shares in the last quarter. Lazard Asset Management LLC acquired a new stake in Radcom during the first quarter worth about $236,000. Finally, NewEdge Advisors LLC acquired a new stake in Radcom during the first quarter worth about $369,000. 48.32% of the stock is owned by institutional investors.

About Radcom

RADCOM Ltd. NASDAQ: RDCM is an Israel-based provider of network intelligence and service assurance solutions for telecommunications operators. The company helps communications service providers monitor, analyze and optimize mobile and fixed networks, with a focus on cloud-native, virtualized and 5G network environments.

RADCOM's portfolio includes solutions for network visibility, service quality monitoring, performance management and automated troubleshooting. Its software is designed to collect and analyze data from complex network infrastructures, enabling operators to identify service issues, improve customer experiences and support the rollout and operation of new network technologies.

Founded in 1991, RADCOM serves telecommunications companies and network operators in international markets.

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