WidePoint (NYSEAMERICAN:WYY) Shares Cross Below 50-Day Moving Average - Time to Sell?

Key Points

• WidePoint shares fell below their 50-day moving average, trading as low as $6.81 and last changing hands at $6.95, compared with a 50-day average of $9.80.
• Zacks Research downgraded the stock from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with a $9.00 average price target.
• The company missed quarterly expectations, reporting $0.01 in earnings per share versus $0.04 expected and revenue of $38.0 million versus $41.83 million forecast.

WidePoint Corporation (NYSEAMERICAN:WYY - Get Free Report) crossed below its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $9.80 and traded as low as $6.81. WidePoint shares last traded at $6.95, with a volume of 107,118 shares traded.

Wall Street Analysts Forecast Growth

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

WidePoint Trading Down 4.7%

The company has a 50-day simple moving average of $9.80 and a 200 day simple moving average of $9.89. The company has a market cap of $69.50 million, a P/E ratio of -53.46 and a beta of 1.84.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) last released its earnings results on Thursday, August 13th. The technology company reported $0.01 earnings per share 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 business had revenue of $38.00 million during the quarter, compared to analysts' expectations of $41.83 million. On average, equities analysts forecast that WidePoint Corporation will post 0.05 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in WYY. Cassaday & Co Wealth Management LLC bought a new stake in WidePoint during the 1st quarter valued at about $87,000. PNC Financial Services Group Inc. purchased a new stake in WidePoint in the 1st quarter valued at about $50,000. Finally, Royal Bank of Canada grew its stake in WidePoint by 19,130.8% in the 1st quarter. Royal Bank of Canada now owns 5,000 shares of the technology company's stock worth $25,000 after acquiring an additional 4,974 shares in the last quarter. Hedge funds and other institutional investors own 22.60% of the company's stock.

About WidePoint

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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