Radcom (NASDAQ:RDCM) Shares Break Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Radcom shares fell below their 200-day moving average, trading near $10.20 versus the $12.36 average, signaling continued technical weakness.
• Analysts have an average “Hold” rating and a $14 price target, although Needham lowered its target from $18 while maintaining a Buy rating.
• The company missed quarterly expectations, reporting a $0.09 loss per share and $11.76 million in revenue versus forecasts of $0.24 EPS and $15.57 million revenue; it also authorized a $20 million stock buyback.

Radcom Ltd. (NASDAQ:RDCM - Get Free Report)'s stock price crossed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $12.36 and traded as low as $10.18. Radcom shares last traded at $10.20, with a volume of 30,937 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Zacks Research raised Radcom from a "strong sell" rating to a "hold" rating in a report on Monday, October 12th. Weiss Ratings cut Radcom from a "hold (c+)" rating to a "hold (c)" rating in a research note 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, Needham & Company LLC lowered their price target on Radcom from $18.00 to $14.00 and set a "buy" rating for the company in a research report on Wednesday, August 12th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Radcom currently has an average rating of "Hold" and an average target price of $14.00.

Radcom Price Performance

The firm's 50 day moving average price is $10.21 and its 200-day moving average price is $12.36. The stock has a market cap of $170.75 million, a P/E ratio of 24.29 and a beta of 0.76.

Radcom (NASDAQ:RDCM - Get Free Report) last posted its quarterly earnings results 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 net margin of 10.47% and a return on equity of 6.51%. The firm had revenue of $11.76 million for the quarter, compared to analysts' expectations of $15.57 million. On average, analysts expect that Radcom Ltd. will post -0.03 earnings per share for the current year.

Radcom declared that its board has initiated a stock repurchase plan on Thursday, September 17th that allows the company to buy back $20.00 million in shares. This repurchase authorization allows the technology company to repurchase up to 11.8% of its stock through open market purchases. Share repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Institutional Trading of Radcom

Several institutional investors have recently added to or reduced their stakes in RDCM. NewEdge Advisors LLC purchased a new position in shares of Radcom in the first quarter worth $369,000. Lazard Asset Management LLC bought a new position in shares of Radcom during the first quarter valued at $236,000. Private Advisor Group LLC lifted its holdings in shares of Radcom by 2.1% during the first quarter. Private Advisor Group LLC now owns 351,019 shares of the technology company's stock valued at $4,268,000 after purchasing an additional 7,372 shares in the last quarter. Janney Montgomery Scott LLC boosted its position in shares of Radcom by 1.7% during 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 last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Radcom during the second quarter valued at $35,000. 48.32% of the stock is currently owned by hedge funds and other institutional investors.

Radcom Company Profile

Radcom Ltd. NASDAQ: RDCM is an Israel-based provider of cloud-native service assurance and network intelligence solutions for communication service providers. Founded in 1991, the company develops software that helps telecommunications operators monitor network performance, identify service issues and improve customer experience across complex, evolving networks.

Radcom's product portfolio is designed to support 4G and 5G mobile networks, cloud-based network functions and other virtualized telecommunications environments.

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