CommScope Holding Company Inc. (NASDAQ: COMM) – Suitable For Long Term Buy?

GLBE Stock
GLBE Stock

Wellington Management Co. LLP recently announced the acquisition of new stake in CommScope Holding Company Inc. (NASDAQ:COMM). The institutional investor has increased its shareholding in the Technology company by 29.42% to 21.38 million shares with purchase of 4.86 million shares. This fresh investment now brings its stake to 10.91% valued currently at $198.37 million. In addition, JPMorgan Investment Management, I.. raised its holdings by 64467.0 to 12.23 million shares. And Adage Capital Management LP has lifted its position by 47.18% or 3.71 million shares – to 11.58 million shares.

With over 4.09 million CommScope Holding Company Inc. (COMM) shares trading Tuesday and a closing price of $10.72 on the day, the dollar volume was approximately $43.82 million. The shares have shown a positive weekly performance of 2.10% and its price on 09/01/20 gained nearly 4.08%. Currently, there are 195.90M common shares owned by the public and among those 192.96M 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: 14 analysts who have offered their price forecasts for COMM have a consensus price objective of $13.23. The analysts have set the share’s price value over the next 12 months at a high of $18.00 and a low of $10.00 should the stock experience a downside. Incidentally, analysts’ outlook for the CommScope Holding Company Inc. stock is 2.40 for the next 12 months. The average price target is 20.47% above its last price level and an upside to the estimated low will see the stock lose -7.2% over that period. But an upside of 40.44% will see the stock hit the forecast high price target while mean target price for the stock is $12.50.

Insiders at the company have transacted a total of 31 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 20 of these insider trades were purchases, accounting for 688,246 shares. Insider sales of the common stock occurred on 11 occasions, with total insider shares sold totaling 276,480 shares.

The top 3 mutual fund holders in CommScope Holding Company Inc. are Hartford Mid Cap Fund, First Trust Dow Jones Internet In, and Fidelity Select Port. – Semicondu. Hartford Mid Cap Fund owns 15.8 million shares of the company’s stock, all valued at over $146.6 million. The company bought an additional 1.67 million shares recently to bring their total holdings to about 8.07% of the shares outstanding. First Trust Dow Jones Internet In sold 14467.0 shares to see its total holdings shrink to 7.08 million shares valued at over $65.66 million and representing 3.61% of the shares outstanding. Fidelity Select Port. – Semicondu sold -0.15 million shares to bring its total holdings to over 6.49 million shares at a value of $60.23 million. Fidelity Select Port. – Semicondu now owns shares totaling to 3.31% of the shares outstanding.

Shares of CommScope Holding Company Inc. (NASDAQ: COMM) opened at $10.28, down -$0.02 from a prior closing price of $10.30. However, the script later closed the day at $10.72, up 4.08%. The company’s stock has a 5-day price change of 2.10% and 1.42% over the past three months. COMM shares are trading -24.45% year to date (YTD), with the 12-month market performance up to 3.68% higher. It has a 12-month low price of $5.50 and touched a high of $15.79 over the same period. Currently, 4.09 million shares have been traded, compared to an average intraday trading volume of 4.38 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.33%, 15.06%, and -2.05% respectively.

Institutional ownership of CommScope Holding Company Inc. (NASDAQ: COMM) shares accounts for 96.70% of the company’s 195.90M shares outstanding. Mutual fund holders own 45.55%, while other institutional holders and individual stakeholders account for 51.76% and 12.08% respectively.

It has a market capitalization of $2.07B and a beta (3y monthly) value of 1.70. The earnings-per-share (ttm) stands at -$5.79. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.73% over the week and 4.06% over the month.

Analysts forecast that CommScope Holding Company Inc. (COMM) will achieve an EPS of $0.36 for the current quarter, $0.47 for the next quarter and $1.91 for 2021. The lowest estimate earnings-per-share for the quarter is $0.23 while analysts give the company a high EPS estimate of $0.46. Comparatively, EPS for the current quarter was $0.55 a year ago. Earnings per share for the fiscal year are expected to decrease by -839.90%, and 49.18% over the next financial year. EPS should grow at an annualized rate of -0.25% over the next five years, compared to -43.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate CommScope Holding Company Inc. (COMM) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 8 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the COMM, a number of firms have released research notes about the stock. Wolfe Research stated their Outperform rating for the stock in a research note on July 24, 2020, with the firm’s price target at. Raymond James coverage for the CommScope Holding Company Inc. (COMM) stock in a research note released on July 07, 2020 offered a Mkt Perform rating with a price target of. Loop Capital was of a view on May 05, 2020 that the stock is Hold, while JP Morgan gave the stock Neutral rating on April 20, 2020, issuing a price target of $12. Citigroup on their part issued Neutral rating on March 16, 2020.


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