WidePoint (NYSEAMERICAN:WYY) Share Price Breaks Below 50 Day Moving Average - Should You Sell?

Key Points

• WidePoint shares fell below their 50-day moving average, trading as low as $6.00 versus the $9.25 average, with the stock last at $6.02.
• Zacks Research downgraded the stock from “strong buy” to “hold.” Despite one Buy and one Hold rating, analysts’ consensus remains “Moderate Buy” with a $9.00 price target.
• The company missed quarterly expectations, reporting $0.01 EPS versus $0.04 expected and revenue of $38.0 million versus $41.83 million forecast; WidePoint also posted negative net margin and return on equity.

WidePoint Corporation (NYSEAMERICAN:WYY - Get Free Report)'s stock price passed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $9.25 and traded as low as $6.00. WidePoint shares last traded at $6.02, with a volume of 93,358 shares traded.

Wall Street Analyst Weigh In

Separately, Zacks Research lowered WidePoint from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 13th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $9.00.

WidePoint Stock Down 2.1%

The company's 50-day moving average is $9.25 and its two-hundred day moving average is $9.95. The company has a market capitalization of $60.20 million, a P/E ratio of -46.30 and a beta of 1.84.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The technology company reported $0.01 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.04 by ($0.03). WidePoint had a negative return on equity of 10.74% and a negative net margin of 0.81%. The company had revenue of $38.00 million for the quarter, compared to the consensus estimate of $41.83 million. On average, sell-side analysts predict that WidePoint Corporation will post 0.05 EPS for the current year.

Institutional Investors Weigh In On WidePoint

Institutional investors have recently made changes to their positions in the business. Royal Bank of Canada boosted its position in WidePoint by 19,130.8% during the first quarter. Royal Bank of Canada now owns 5,000 shares of the technology company's stock valued at $25,000 after buying an additional 4,974 shares during the period. PNC Financial Services Group Inc. purchased a new position in shares of WidePoint in the first quarter worth about $50,000. Finally, Cassaday & Co Wealth Management LLC purchased a new position in shares of WidePoint in the first quarter worth about $87,000. Hedge funds and other institutional investors own 22.60% of the company's stock.

WidePoint Company Profile

WidePoint Corporation is a technology services company that provides cybersecurity, identity management and managed mobility solutions. Its customers include U.S. government agencies, government contractors and commercial organizations that require secure access to communications, devices, applications and data.

The company's offerings include identity, credential and access management; public key infrastructure and digital certificate services; mobile device and telecommunications management; and telecom expense management.

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