Radcom (NASDAQ:RDCM) Share Price Crosses Below Two Hundred Day Moving Average - Here's Why

Key Points

• Radcom shares slipped below their 200-day moving average of $12.69, trading as low as $12.11 and last at $12.40 on volume of 44,386, a potentially bearish technical signal.
• Analysts are cautiously positive: the consensus rating is a Moderate Buy with a $18.00 average price target after Needham reiterated a buy and Wall Street Zen trimmed its rating to buy.
• Fundamentals show a recent beat—EPS $0.31 vs. $0.23 estimate and revenue $18.86M vs. $18.46M estimate—while Radcom has a $205.8M market cap, P/E of 17.2 and roughly 48% institutional ownership.

Radcom Ltd. (NASDAQ:RDCM - Get Free Report)'s stock price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $12.69 and traded as low as $12.11. Radcom shares last traded at $12.40, with a volume of 44,386 shares changing hands.

Analyst Ratings Changes

A number of research analysts recently issued reports on RDCM shares. Wall Street Zen lowered shares of Radcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, March 21st. Weiss Ratings reiterated a "hold (c+)" rating on shares of Radcom in a research note on Monday, December 22nd. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $18.00 target price on shares of Radcom in a research note on Wednesday, February 11th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Radcom currently has an average rating of "Moderate Buy" and a consensus target price of $18.00.

Radcom Stock Performance

The company has a market capitalization of $205.75 million, a price-to-earnings ratio of 17.22 and a beta of 0.54. The firm's 50-day simple moving average is $11.71 and its 200-day simple moving average is $12.69.

Radcom (NASDAQ:RDCM - Get Free Report) last posted its quarterly earnings results on Thursday, February 12th. The technology company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.08. The company had revenue of $18.86 million for the quarter, compared to analyst estimates of $18.46 million. Radcom had a net margin of 16.77% and a return on equity of 11.53%. Equities research analysts forecast that Radcom Ltd. will post 0.54 earnings per share for the current year.

Hedge Funds Weigh In On Radcom

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Lynrock Lake LP lifted its holdings in shares of Radcom by 7.7% during the 4th quarter. Lynrock Lake LP now owns 2,441,775 shares of the technology company's stock worth $31,938,000 after acquiring an additional 175,094 shares during the period. Private Advisor Group LLC raised its stake in shares of Radcom by 22.7% in the fourth quarter. Private Advisor Group LLC now owns 343,647 shares of the technology company's stock worth $4,495,000 after acquiring an additional 63,589 shares during the last quarter. Janney Montgomery Scott LLC raised its stake in shares of Radcom by 1.2% in the fourth quarter. Janney Montgomery Scott LLC now owns 322,099 shares of the technology company's stock worth $4,213,000 after acquiring an additional 3,750 shares during the last quarter. Herald Investment Management Ltd raised its stake in shares of Radcom by 9.1% in the third quarter. Herald Investment Management Ltd now owns 300,000 shares of the technology company's stock worth $4,272,000 after acquiring an additional 25,000 shares during the last quarter. Finally, Essex Investment Management Co. LLC raised its stake in shares of Radcom by 3.4% in the third quarter. Essex Investment Management Co. LLC now owns 233,361 shares of the technology company's stock worth $3,381,000 after acquiring an additional 7,642 shares during the last quarter. 48.32% of the stock is owned by 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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