Do ORBCOMM Inc. (NASDAQ: ORBC) Fit In A Value Investing Philosophy?


    BlackRock Fund Advisors recently announced the acquisition of new stake in ORBCOMM Inc. (NASDAQ:ORBC). The institutional investor has increased its shareholding in the Communication Services company by 0.33% to 5.09 million shares with purchase of 16830.0 shares. This fresh investment now brings its stake to 6.48% valued currently at $13.95 million. In addition, Rockefeller & Co. LLC raised its holdings by 87896.0 to 2.88 million shares. And Ariel Investments LLC has lifted its position by 4.44% or 0.12 million shares – to 2.73 million shares.

    With over 0.48 million ORBCOMM Inc. (ORBC) shares trading Tuesday and a closing price of $3.58 on the day, the dollar volume was approximately $1.73 million. The shares have shown a negative weekly performance of -4.79% and its price on 07/07/20 lost nearly -5.79%. Currently, there are 78.31M common shares owned by the public and among those 75.00M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for ORBC have a consensus price objective of $6.50. The analysts have set the share’s price value over the next 12 months at a high of $8.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the ORBCOMM Inc. stock is 1.60 for the next 12 months. The average price target is 44.92% above its last price level and an upside to the estimated low will see the stock gain 28.4% over that period. But an upside of 55.25% will see the stock hit the forecast high price target while mean target price for the stock is $6.50.

    Insiders at the company have transacted a total of 53 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 769,899 shares. Insider sales of the common stock occurred on 20 occasions, with total insider shares sold totaling 529,876 shares.

    The top 3 mutual fund holders in ORBCOMM Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Vanguard Extended Market Index Fu. Vanguard Total Stock Market Index owns 2.35 million shares of the company’s stock, all valued at over $6.44 million. The company has a total holdings of about 2.99% of the shares outstanding. iShares Russell 2000 ETF bought 15317.0 shares to see its total holdings expand to 1.53 million shares valued at over $4.2 million and representing 1.95% of the shares outstanding. Vanguard Extended Market Index Fu sold 6064.0 shares to bring its total holdings to over 1.2 million shares at a value of $3.3 million. Vanguard Extended Market Index Fu now owns shares totaling to 1.53% of the shares outstanding.

    Shares of ORBCOMM Inc. (NASDAQ: ORBC) opened at $3.74, down -$0.06 from a prior closing price of $3.80. However, the script later closed the day at $3.58, down -5.79%. The company’s stock has a 5-day price change of -4.79% and 70.48% over the past three months. ORBC shares are trading -14.96% year to date (YTD), with the 12-month market performance down to -54.39% lower. It has a 12-month low price of $1.24 and touched a high of $8.21 over the same period. Currently, 0.48 million shares have been traded, compared to an average intraday trading volume of 885.88K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.55%, 10.53%, and 0.06% respectively.

    Institutional ownership of ORBCOMM Inc. (NASDAQ: ORBC) shares accounts for 73.10% of the company’s 78.31M shares outstanding. Mutual fund holders own 30.64%, while other institutional holders and individual stakeholders account for 42.29% and 21.66% respectively.

    It has a market capitalization of $281.53M and a beta (3y monthly) value of 1.17. The stock’s earnings-per-share (ttm) stands at -$0.25. The company has a Quick Ratio of 2.50 with the debt-to-equity ratio at 1.15. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.49% over the week and 7.26% over the month.

    Analysts forecast that ORBCOMM Inc. (ORBC) will achieve an EPS of -$0.13 for the current quarter, -$0.1 for the next quarter and -$0.24 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.16 while analysts give the company a high EPS estimate of -$0.12. Comparatively, EPS for the current quarter was -$0.08 a year ago. Earnings per share for the fiscal year are expected to increase by 31.30%, and 41.50% over the next financial year. EPS should grow at an annualized rate of 20.00% over the next five years, compared to -22.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate ORBCOMM Inc. (ORBC) as a “Strong Buy” at a consensus score of 1.60. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 0 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the ORBC, a number of firms have released research notes about the stock. Craig Hallum stated their Buy rating for the stock in a research note on August 22, 2019, with the firm’s price target at $7.50. First Analysis Sec coverage for the ORBCOMM Inc. (ORBC) stock in a research note released on February 28, 2019 offered a Outperform rating with a price target of $10. Chardan Capital Markets was of a view on February 28, 2019 that the stock is Neutral, while ROTH Capital gave the stock Buy rating on February 02, 2018 $14. The Benchmark Company on their part issued Buy rating on April 25, 2017.


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