The stock price of CommScope Holding Company Inc (NASDAQ: COMM) has jumped by 4.29 compared to previous close of 5.36. Despite this, the company has seen a gain of 13.62% in its stock price over the last five trading days. seekingalpha.com reported 2024-12-20 that CommScope stock surged over 250% despite ongoing challenges, with Q2 earnings showing significant bottom-line growth, but Q3 results coming in weak. The asset sale announcement initially triggered a sell-off in COMM stock, but bullish momentum had already begun. Long-term debt remains a significant burden, with management potentially considering additional debt capital, which may not be a sustainable solution.
Is It Worth Investing in CommScope Holding Company Inc (NASDAQ: COMM) Right Now?
Additionally, the 36-month beta value for COMM is 1.92. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 5 rating it as “hold,” and 1 rating it as “sell.”
The public float for COMM is 208.22M and currently, short sellers hold a 4.58% ratio of that float. The average trading volume of COMM on January 22, 2025 was 4.40M shares.
COMM’s Market Performance
COMM’s stock has seen a 13.62% increase for the week, with a -0.36% drop in the past month and a -1.06% fall in the past quarter. The volatility ratio for the week is 6.19%, and the volatility levels for the past 30 days are at 7.51% for CommScope Holding Company Inc. The simple moving average for the past 20 days is 4.16% for COMM’s stock, with a 57.06% simple moving average for the past 200 days.
Analysts’ Opinion of COMM
Many brokerage firms have already submitted their reports for COMM stocks, with JP Morgan repeating the rating for COMM by listing it as a “Neutral.” The predicted price for COMM in the upcoming period, according to JP Morgan is $5 based on the research report published on January 14, 2025 of the current year 2025.
Morgan Stanley gave a rating of “Underweight” to COMM, setting the target price at $5 in the report published on December 17th of the previous year.
COMM Trading at 7.54% from the 50-Day Moving Average
After a stumble in the market that brought COMM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.25% of loss for the given period.
Volatility was left at 7.51%, however, over the last 30 days, the volatility rate increased by 6.19%, as shares sank -8.81% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.81% lower at present.
During the last 5 trading sessions, COMM rose by +13.62%, which changed the moving average for the period of 200-days by +381.90% in comparison to the 20-day moving average, which settled at $5.37. In addition, CommScope Holding Company Inc saw 7.29% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at COMM starting from Lorentzen Kyle David, who purchase 11,600 shares at the price of $1.25 back on Mar 27 ’24. After this action, Lorentzen Kyle David now owns 712,475 shares of CommScope Holding Company Inc, valued at $14,500 using the latest closing price.
KRAUSE L WILLIAM, the Director of CommScope Holding Company Inc, purchase 92,127 shares at $1.60 during a trade that took place back on Mar 13 ’24, which means that KRAUSE L WILLIAM is holding 320,000 shares at $147,154 based on the most recent closing price.
Stock Fundamentals for COMM
Current profitability levels for the company are sitting at:
- 0.09 for the present operating margin
- 0.34 for the gross margin
The net margin for CommScope Holding Company Inc stands at -0.18. The total capital return value is set at 0.07.
Based on CommScope Holding Company Inc (COMM), the company’s capital structure generated 1.36 points at debt to capital in total, while cash flow to debt ratio is standing at 0.01. The debt to equity ratio resting at -3.77. The interest coverage ratio of the stock is 0.63.
Currently, EBITDA for the company is 519.1 million with net debt to EBITDA at 9.61. When we switch over and look at the enterprise to sales, we see a ratio of 1.82. The receivables turnover for the company is 7.26for trailing twelve months and the total asset turnover is 0.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.40.
Conclusion
In conclusion, CommScope Holding Company Inc (COMM) has seen mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
