SuperCom (NASDAQ:SPCB) Shares Pass Below 200-Day Moving Average - What's Next?

Key Points

• SuperCom shares fell below their 200-day moving average, trading as low as $9.67 versus the $10.06 average, with the latest price near $9.77.
• Analyst sentiment is bearish: Wall Street Zen downgraded the stock to “hold,” Weiss Ratings maintained a “sell (D+)” rating, and MarketBeat reports a consensus “Sell” rating.
• Despite the technical weakness, SuperCom exceeded quarterly expectations, reporting $0.52 in earnings per share versus $0.28 expected and revenue of $8.09 million versus $7.15 million projected.

Shares of SuperCom, Ltd. (NASDAQ:SPCB - Get Free Report) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $10.06 and traded as low as $9.67. SuperCom shares last traded at $9.77, with a volume of 64,427 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms recently commented on SPCB. Wall Street Zen lowered SuperCom from a "buy" rating to a "hold" rating in a research report on Saturday, August 22nd. Weiss Ratings restated a "sell (d+)" rating on shares of SuperCom in a report on Thursday, August 27th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, SuperCom currently has a consensus rating of "Sell".

SuperCom Price Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 7.49 and a current ratio of 7.96. The stock has a market cap of $54.22 million, a price-to-earnings ratio of 5.90 and a beta of 1.17. The business's fifty day simple moving average is $10.66 and its 200 day simple moving average is $10.06.

SuperCom (NASDAQ:SPCB - Get Free Report) last announced its earnings results on Thursday, August 13th. The industrial products company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.24. SuperCom had a return on equity of 21.28% and a net margin of 2.92%.The company had revenue of $8.09 million during the quarter, compared to the consensus estimate of $7.15 million.

Institutional Investors Weigh In On SuperCom

A hedge fund recently raised its position in SuperCom stock. Corsair Capital Management L.P. boosted its holdings in shares of SuperCom, Ltd. (NASDAQ:SPCB - Free Report) by 14.7% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 135,971 shares of the industrial products company's stock after purchasing an additional 17,400 shares during the quarter. Corsair Capital Management L.P. owned approximately 2.53% of SuperCom worth $1,065,000 at the end of the most recent quarter. 47.81% of the stock is owned by institutional investors.

About SuperCom

SuperCom Ltd. NASDAQ: SPCB is an Israel-based technology company that develops secure solutions for the e-government, public safety and electronic-monitoring markets. Its products are designed to help government agencies, law-enforcement organizations and service providers manage individuals and cases through digital identification, tracking and monitoring technologies.

The company's PureSecurity product suite supports electronic monitoring programs, including GPS-based location tracking, home detention, offender monitoring and domestic-violence prevention.

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