Zacks Research Downgrades WidePoint (NYSEAMERICAN:WYY) to Hold

Key Points

• Zacks Research downgraded WidePoint from “strong buy” to “hold,” while the stock opened at $9.45 after an 18.7% decline.
• WidePoint’s latest results fell short of expectations: quarterly EPS was $0.01 versus a $0.04 estimate, and revenue was $38.0 million compared with the projected $41.83 million.
• Insiders sold 82,745 shares worth $1.36 million over the past 90 days; insiders own 16.1% of the company, while institutional investors and hedge funds hold 22.6%.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

WidePoint Stock Down 18.7%

WidePoint stock opened at $9.45 on Thursday. The business's 50-day moving average price is $12.73 and its 200 day moving average price is $8.60. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.32. The firm has a market cap of $93.46 million, a price-to-earnings ratio of -72.69 and a beta of 1.77. WidePoint has a 52 week low of $3.25 and a 52 week high of $24.30.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) last posted its earnings results on Thursday, August 13th. The technology company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.03). WidePoint had a negative net margin of 0.81% and a negative return on equity of 10.71%. The firm had revenue of $38.00 million for the quarter, compared to analysts' expectations of $41.83 million. As a group, sell-side analysts anticipate that WidePoint will post 0.04 earnings per share for the current year.

Insider Activity

In other WidePoint news, Director John J. Fitzgerald sold 15,000 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $15.63, for a total value of $234,450.00. Following the sale, the director directly owned 90,414 shares of the company's stock, 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 document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Todd Dzyak sold 5,000 shares of the business's stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $12.75, for a total value of $63,750.00. Following the completion of the sale, the chief operating officer owned 110,436 shares of the company's stock, valued at $1,408,059. This trade represents a 4.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 82,745 shares of company stock worth $1,355,144 in the last ninety days. Company insiders own 16.10% of the company's stock.

Hedge Funds Weigh In On WidePoint

Large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada lifted its holdings in WidePoint by 19,130.8% during the first quarter. Royal Bank of Canada now owns 5,000 shares of the technology company's stock valued at $25,000 after purchasing an additional 4,974 shares in the last quarter. PNC Financial Services Group Inc. purchased a new position in WidePoint in the 1st quarter valued at about $50,000. Ritholtz Wealth Management acquired a new stake in WidePoint in the 4th quarter worth about $79,000. XTX Topco Ltd purchased a new stake in WidePoint during the 2nd quarter worth approximately $58,000. Finally, Cassaday & Co Wealth Management LLC acquired a new position in shares of WidePoint during the first quarter valued at approximately $87,000. 22.60% of the stock is currently owned by institutional investors and hedge funds.

WidePoint Company Profile

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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