Short-term stake in CommScope Holding Company, Inc. (NASDAQ:COMM) drops 13.6%

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CommScope Holding Company, Inc. (NASDAQ: COMM – Get a rating) benefited from a sharp drop in short-term interest rates during August. As of August 15, there was short interest totaling 10,210,000 shares, down 13.6% from the July 31 total of 11,820,000 shares. Based on an average daily volume of 3,720,000 shares, the short interest rate is currently 2.7 days. Currently, 5.1% of the stock’s shares are sold short.

CommScope stock up 4.1%

NASDAQ COMM was up $0.42 during Tuesday’s trading, hitting $10.70. 3,120,386 shares of the shares traded were traded at an average volume of 4,094,867. The company has a market capitalization of $2.23 billion, a price/earnings ratio of -4.67, a price/earnings ratio of growth of 0.29 and a beta of 1.87. CommScope has a fifty-two week low of $5.56 and a fifty-two week high of $16.19. The stock’s 50-day moving average price is $8.33 and its 200-day moving average price is $7.87.

CommScope (NASDAQ:COMM – Get a rating) last released its quarterly results on Thursday, August 4. The communications equipment provider reported earnings per share of $0.36 for the quarter, beating the consensus estimate of $0.27 by $0.09. The company posted revenue of $2.30 billion in the quarter, compared to analysts’ expectations of $2.26 billion. CommScope had a negative net margin of 4.65% and a negative return on equity of 105.05%. The company’s quarterly revenue increased 5.3% from the same quarter last year. In the same quarter of the previous year, the company had earned earnings per share of $0.38. Analysts expect CommScope to post 1.51 EPS for the current fiscal year.

Insider Activity at CommScope

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In related news, CEO Charles L. Treadway purchased 59,927 shares of the company in a trade on Thursday, June 2. The stock was purchased at an average cost of $8.34 per share, with a total value of $499,791.18. Following the completion of the purchase, the CEO now owns 1,212,302 shares of the company, valued at approximately $10,110,598.68. The acquisition was disclosed in a legal filing with the SEC, available at this hyperlink. In related news, CEO Charles L. Treadway purchased 59,927 shares of the company in a trade on Thursday, June 2. The stock was purchased at an average cost of $8.34 per share, with a total value of $499,791.18. Following the completion of the purchase, the CEO now owns 1,212,302 shares of the company, valued at approximately $10,110,598.68. The acquisition was disclosed in a legal filing with the SEC, available at this hyperlink. Also, CFO Kyle David Lorentzen bought 17,887 shares of the company in a trade on Friday, June 3. The stock was purchased at an average cost of $8.11 per share, with a total value of $145,063.57. Following the completion of the purchase, the CFO now owns 209,398 shares of the company, valued at approximately $1,698,217.78. Disclosure of this purchase can be found here. Insiders have purchased 140,890 shares of the company valued at $1,290,176 over the past ninety days. Insiders hold 2.40% of the shares of the company.

Institutional entries and exits

Several institutional investors and hedge funds have recently changed their positions in the stock. Captrust Financial Advisors increased its position in CommScope shares by 124.4% in the second quarter. Captrust Financial Advisors now owns 6,356 shares of the communications equipment supplier worth $39,000 after buying 3,524 additional shares last quarter. Legal & General Group Plc increased its position in CommScope shares by 10.8% in the second quarter. Legal & General Group Plc now owns 197,187 shares of the communications equipment supplier worth $1,207,000 after buying a further 19,153 shares last quarter. Walleye Capital LLC increased its position in CommScope shares by 51.6% in the second quarter. Walleye Capital LLC now owns 181,933 shares of the communications equipment provider worth $1,113,000 after buying an additional 61,941 shares last quarter. First Republic Investment Management Inc. increased its position in CommScope shares by 2.0% in the second quarter. First Republic Investment Management Inc. now owns 66,552 shares of the communications equipment provider worth $407,000 after buying an additional 1,331 shares last quarter. Finally, Wolf Hill Capital Management LP purchased a new equity stake in CommScope in the second quarter at a value of $22,785,000. Institutional investors and hedge funds own 90.79% of the company’s shares.

Analysts set new price targets

A number of research companies have recently weighed in on COMM. Morgan Stanley downgraded CommScope shares from an “overweight” rating to an “equal weight” rating and raised its price target for the stock from $9.00 to $11.00 in a Friday research note 5 August. Deutsche Bank Aktiengesellschaft raised its price target on CommScope shares from $9.00 to $12.00 and gave the stock a “buy” rating in a Friday, Aug. 5 research note. JPMorgan Chase & Co. lowered its price target on CommScope shares from $9.00 to $7.00 and set a “neutral” rating for the company in a Thursday, July 14 research note. Evercore ISI lowered its price target on CommScope shares from $8.00 to $7.00 and set an “in-line” rating for the company in a Tuesday, June 28 research note. Finally, Citigroup raised its price target on CommScope shares from $6.00 to $7.00 and gave the stock a “sell” rating in a Friday, Aug. 5 research note. Three analysts gave the stock a sell rating, seven gave the company a hold rating and two gave the company a buy rating. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $9.67.

About CommScope

(Get a rating)

CommScope Holding Company, Inc provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Site and Campus Networks (VCN) and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products and hardened closures to the broadband market of telecommunications operators and cable companies.

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