Commscope (NASDAQ:COMM) Shares Gap Up on Earnings Beat

Commscope Holding Company Inc (NASDAQ:COMM) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $17.00, but opened at $14.94. Commscope shares last traded at $15.54, with a volume of 326,302 shares trading hands.

The communications equipment provider reported $0.55 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.11. Commscope had a negative net margin of 5.03% and a positive return on equity of 25.08%. The company had revenue of $2.38 billion for the quarter, compared to analyst estimates of $2.42 billion. During the same quarter in the prior year, the business posted $0.59 EPS. The firm’s revenue was up 106.9% compared to the same quarter last year.

Several equities research analysts have commented on the stock. Rosenblatt Securities lowered shares of Commscope from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $16.00 to $13.00 in a research note on Tuesday, October 29th. Nomura reiterated a “buy” rating and issued a $16.00 price objective on shares of Commscope in a research note on Thursday. Bank of America decreased their price objective on shares of Commscope from $26.00 to $16.00 and set a “neutral” rating for the company in a research note on Friday, August 9th. Deutsche Bank set a $28.00 price objective on shares of Commscope and gave the company a “buy” rating in a research note on Friday, August 9th. Finally, Northland Securities reiterated a “buy” rating and issued a $22.50 price objective on shares of Commscope in a research note on Friday, August 9th. Three equities research analysts have rated the stock with a sell rating, four have issued a hold rating and nine have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $18.35.

In related news, Director L William Krause bought 21,250 shares of Commscope stock in a transaction dated Monday, September 9th. The stock was purchased at an average cost of $11.87 per share, with a total value of $252,237.50. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. 3.25% of the stock is owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the company. Maverick Capital Ltd. boosted its holdings in Commscope by 84.4% in the 2nd quarter. Maverick Capital Ltd. now owns 18,511,826 shares of the communications equipment provider’s stock worth $291,191,000 after buying an additional 8,470,190 shares during the period. First Trust Advisors LP boosted its holdings in Commscope by 1,388.3% in the 3rd quarter. First Trust Advisors LP now owns 8,433,088 shares of the communications equipment provider’s stock worth $99,173,000 after buying an additional 7,866,476 shares during the period. Nuveen Asset Management LLC bought a new position in Commscope in the 2nd quarter worth approximately $23,921,000. Russell Investments Group Ltd. boosted its holdings in Commscope by 26.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 4,922,583 shares of the communications equipment provider’s stock worth $77,406,000 after buying an additional 1,043,254 shares during the period. Finally, State of New Jersey Common Pension Fund D bought a new position in Commscope in the 2nd quarter worth approximately $9,438,000. 97.31% of the stock is owned by hedge funds and other institutional investors.

The company’s fifty day moving average is $11.66 and its 200 day moving average is $14.78. The company has a market capitalization of $2.36 billion, a P/E ratio of 7.34, a P/E/G ratio of 0.41 and a beta of 1.52. The company has a current ratio of 1.88, a quick ratio of 1.27 and a debt-to-equity ratio of 7.23.

About Commscope (NASDAQ:COMM)

CommScope Holding Company, Inc provides infrastructure solutions for communications networks worldwide. The company's CommScope Connectivity Solutions segment offers optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the SYSTIMAX, NETCONNECT, and Uniprise brands; and fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems, and cable assemblies for use in offices and data centers.

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