Radcom (NASDAQ:RDCM) Stock 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 $10.22 versus the $12.47 average, and last traded near $10.30.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $14.00; Needham maintained a Buy rating but reduced its target from $18 to $14, while Zacks downgraded the stock to Strong Sell.
• Radcom’s latest quarter missed 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. Despite the weak results, the board authorized a $20 million share buyback, covering up to 11.8% of outstanding shares.

Radcom Ltd. (NASDAQ:RDCM - Get Free Report)'s stock price passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $12.47 and traded as low as $10.22. Radcom shares last traded at $10.30, with a volume of 28,407 shares.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. 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. Wall Street Zen raised Radcom from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Weiss Ratings lowered Radcom from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 9th. Finally, Zacks Research cut Radcom from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $14.00.

Radcom Stock Down 1.1%

The stock's 50-day simple moving average is $10.20 and its two-hundred day simple moving average is $12.47. The company has a market capitalization of $172.42 million, a price-to-earnings ratio of 24.52 and a beta of 0.76.

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

Radcom announced that its Board of Directors has initiated a stock repurchase plan on Thursday, September 17th that allows the company to buyback $20.00 million in shares. This buyback authorization allows the technology company to buy up to 11.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RDCM. Public Employees Retirement System of Ohio acquired a new stake in Radcom during the 2nd quarter worth approximately $35,000. Janney Montgomery Scott LLC boosted its position in Radcom by 1.7% in the 1st 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 stake in shares of Radcom by 2.1% in the first quarter. Private Advisor Group LLC now owns 351,019 shares of the technology company's stock worth $4,268,000 after acquiring an additional 7,372 shares in the last quarter. Lazard Asset Management LLC acquired a new position in shares of Radcom in the first quarter worth $236,000. Finally, NewEdge Advisors LLC purchased a new stake in shares of Radcom during the first quarter worth $369,000. 48.32% of the stock is 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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