WidePoint (NYSEAMERICAN:WYY) Posts Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• WidePoint missed quarterly expectations: The technology company reported $0.01 in earnings per share, $0.03 below consensus estimates, while revenue of $38.0 million also fell short of the expected $41.83 million.
• Shares traded at $11.63, with the stock ranging from $3.25 to $24.30 over the past year. Analysts maintain a consensus “Buy” rating, though their average price target of $8.67 is below the current share price.
• Insiders have been selling shares: Executives and directors sold 82,745 shares worth about $1.36 million over the past three months, while institutional investors own 22.6% of the company.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) posted its earnings results on Thursday. The technology company reported $0.01 earnings per share for the quarter, missing analysts' consensus estimates of $0.04 by ($0.03), FiscalAI reports. WidePoint had a negative return on equity of 16.24% and a negative net margin of 1.24%.The business had revenue of $38.00 million during the quarter, compared to analyst estimates of $41.83 million.

WidePoint Stock Performance

Shares of WidePoint stock traded up $0.14 during mid-day trading on Thursday, hitting $11.63. 84,613 shares of the stock were exchanged, compared to its average volume of 160,159. WidePoint has a 12 month low of $3.25 and a 12 month high of $24.30. The company has a 50-day simple moving average of $12.76 and a 200 day simple moving average of $8.57. The company has a market capitalization of $115.02 million, a P/E ratio of -58.15 and a beta of 1.77. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.04 and a current ratio of 1.04.

Analysts Set New Price Targets

Separately, Zacks Research raised WidePoint from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company. Based on data from MarketBeat.com, WidePoint has a consensus rating of "Buy" and an average target price of $8.67.

Insider Activity at WidePoint

In related news, Director John J. Fitzgerald sold 15,000 shares of WidePoint stock in a transaction on Monday, July 6th. The stock was sold at an average price of $15.63, for a total transaction of $234,450.00. Following the sale, the director directly owned 90,414 shares in the company, valued at approximately $1,413,170.82. This trade represents a 14.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Robert J. George sold 16,882 shares of the business'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 completion of the transaction, the chief financial officer directly owned 19,842 shares in the company, valued at approximately $320,646.72. This represents a 45.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 82,745 shares of company stock valued at $1,355,144. 16.10% of the stock is owned by insiders.

Hedge Funds Weigh In On WidePoint

Several institutional investors have recently added to or reduced their stakes in the stock. XTX Topco Ltd purchased a new position in WidePoint in the second quarter valued at about $58,000. NewEdge Advisors LLC bought a new position in shares of WidePoint during the 2nd quarter valued at approximately $74,000. Jane Street Group LLC purchased a new stake in shares of WidePoint during the 2nd quarter worth approximately $87,000. Bridgeway Capital Management LLC increased its stake in shares of WidePoint by 87.6% during the 2nd quarter. Bridgeway Capital Management LLC now owns 60,527 shares of the technology company's stock worth $207,000 after purchasing an additional 28,269 shares during the last quarter. Finally, Vanguard Group Inc. raised its holdings in shares of WidePoint by 2.4% in the 3rd quarter. Vanguard Group Inc. now owns 376,513 shares of the technology company's stock worth $1,862,000 after purchasing an additional 8,850 shares during the period. Institutional investors own 22.60% of the company's stock.

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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