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

Key Points

• WidePoint shares briefly fell below their 50-day moving average of $10.88, trading as low as $10.81 before closing at $11.13. The stock remains above its 200-day average of $9.29.
• Analyst sentiment is still moderately positive, with two Buy ratings and one Hold rating, but Zacks Research downgraded the stock to Hold. The consensus price target is $9.00, below the recent share price.
• WidePoint missed quarterly expectations, reporting $0.01 in EPS versus $0.04 expected and revenue of $38.0 million versus $41.83 million forecast. Insiders have also sold 72,745 shares worth approximately $1.25 million over the past 90 days.

WidePoint Corporation (NYSEAMERICAN:WYY - Get Free Report)'s share price passed below its fifty day moving average during trading on Monday . The stock has a fifty day moving average of $10.88 and traded as low as $10.81. WidePoint shares last traded at $11.13, with a volume of 113,475 shares trading hands.

Analysts Set New Price Targets

Separately, Zacks Research downgraded WidePoint from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 13th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, WidePoint currently has a consensus rating of "Moderate Buy" and an average price target of $9.00.

WidePoint Stock Up 2.8%

The firm has a market cap of $111.30 million, a P/E ratio of -85.61 and a beta of 1.79. The firm has a fifty day moving average of $10.88 and a 200-day moving average of $9.29.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) last announced 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). The company had revenue of $38.00 million for the quarter, compared to the consensus estimate of $41.83 million. WidePoint had a negative return on equity of 10.74% and a negative net margin of 0.81%. On average, equities analysts forecast that WidePoint Corporation will post 0.03 EPS for the current year.

Insider Activity at WidePoint

In other WidePoint news, CFO Robert J. George sold 16,882 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $16.16, for a total value of $272,813.12. Following the transaction, the chief financial officer directly owned 19,842 shares of the company's stock, valued at $320,646.72. This represents a 45.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Todd Dzyak sold 5,000 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $12.75, for a total value of $63,750.00. Following the transaction, the chief operating officer owned 110,436 shares in the company, valued at $1,408,059. The trade was a 4.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 72,745 shares of company stock worth $1,249,244 in the last ninety days. 16.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On WidePoint

Several institutional investors and hedge funds have recently modified their holdings of WYY. Royal Bank of Canada raised 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 purchasing an additional 4,974 shares in the last quarter. PNC Financial Services Group Inc. acquired a new stake in WidePoint during the first quarter worth approximately $50,000. Cassaday & Co Wealth Management LLC acquired a new stake in WidePoint during the first quarter worth approximately $87,000. Finally, Potomac Capital Management Inc. bought a new position in WidePoint during the 4th quarter worth $1,051,000. 22.60% of the stock is currently owned by institutional investors and hedge funds.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a provider of secure mobility management and identity management solutions. Headquartered in Reston, Virginia, the company delivers a range of managed services designed to help organizations control and secure their telecommunications and IT environments. Since its inception in the late 1990s, WidePoint has focused on helping businesses and government agencies optimize their mobile device portfolios and ensure regulatory compliance.

WidePoint's core offerings include mobile device management, telecom expense management, and unified endpoint security.

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