Radcom (NASDAQ:RDCM) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Radcom from “hold” to “sell,” while analyst opinions remain mixed. MarketBeat reports an average “hold” rating and an average price target of $14.00.
• Radcom’s latest quarterly results fell short of expectations, with an adjusted loss of $0.09 per share versus the $0.24 estimate and revenue of $11.76 million compared with the $15.57 million consensus.
• Shares opened at $10.49, near the lower end of their yearly range of $9.40 to $16.74; hedge funds and other institutional investors own approximately 48.32% of the company.

Radcom (NASDAQ:RDCM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

RDCM has been the topic of a number of other research reports. Weiss Ratings upgraded shares of Radcom from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday. Zacks Research downgraded shares of Radcom from a "hold" rating to a "strong sell" rating in a research note on Wednesday. Finally, Needham & Company LLC lowered their target price on shares of Radcom from $18.00 to $14.00 and set a "buy" rating for the company in a report on Wednesday. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $14.00.

Radcom Price Performance

NASDAQ:RDCM opened at $10.49 on Friday. The firm has a market capitalization of $175.60 million, a price-to-earnings ratio of 24.98 and a beta of 0.74. The business has a 50 day simple moving average of $12.63 and a 200-day simple moving average of $12.85. Radcom has a 1 year low of $9.40 and a 1 year high of $16.74.

Radcom (NASDAQ:RDCM - Get Free Report) last released its earnings results on Wednesday, August 12th. The technology company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.33). Radcom had a net margin of 10.47% and a return on equity of 6.51%. The company had revenue of $11.76 million for the quarter, compared to the consensus estimate of $15.57 million. As a group, analysts expect that Radcom will post 0.59 earnings per share for the current fiscal year.

Institutional Trading of Radcom

A number of hedge funds have recently added to or reduced their stakes in RDCM. Lynrock Lake LP increased its position in Radcom by 7.7% during the 4th quarter. Lynrock Lake LP now owns 2,441,775 shares of the technology company's stock valued at $31,938,000 after purchasing an additional 175,094 shares during the period. Private Advisor Group LLC lifted its position in shares of Radcom by 2.1% in the 1st quarter. Private Advisor Group LLC now owns 351,019 shares of the technology company's stock worth $4,268,000 after purchasing an additional 7,372 shares during the period. Janney Montgomery Scott LLC boosted its stake in shares of Radcom by 1.7% during the first quarter. Janney Montgomery Scott LLC now owns 327,479 shares of the technology company's stock valued at $3,982,000 after purchasing an additional 5,380 shares in the last quarter. Renaissance Technologies LLC boosted its stake in shares of Radcom by 12.7% during the fourth quarter. Renaissance Technologies LLC now owns 208,733 shares of the technology company's stock valued at $2,730,000 after purchasing an additional 23,511 shares in the last quarter. Finally, Marshall Wace LLP increased its holdings in Radcom by 58.1% during the fourth quarter. Marshall Wace LLP now owns 195,554 shares of the technology company's stock valued at $2,558,000 after buying an additional 71,873 shares during the period. 48.32% of the stock is owned by hedge funds and other institutional investors.

About Radcom

Radcom Ltd. NASDAQ: RDCM is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users.

Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services.

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