Frequency Electronics (NASDAQ:FEIM) Trading 8% Higher – Time to Buy?

Frequency Electronics, Inc. (NASDAQ:FEIM)’s stock price rose 8% during mid-day trading on Tuesday . The stock traded as high as $59.01 and last traded at $58.87. 184,327 shares were traded during mid-day trading, a decline of 4% from the average session volume of 191,376 shares. The stock had previously closed at $54.50.

Key Stories Impacting Frequency Electronics

Here are the key news stories impacting Frequency Electronics this week:

• Negative Sentiment: FEIM missed on both profit and revenue for the quarter, posting ($0.50) EPS versus $0.26 expected and $15.4 million in revenue versus about $18.6 million expected, which pressured shares in pre-market trading. Article Title
• Positive Sentiment: The company said its funded backlog hit a record $111 million, up 34% sequentially and 59% year over year, suggesting stronger future revenue visibility. Article Title
• Positive Sentiment: Management reaffirmed a three-year goal of at least $150 million in revenue and laid out targets for 50% gross margin and 30% operating margin, which may support the stock’s longer-term outlook if execution improves. Article Title
• Neutral Sentiment: Investors are also parsing the earnings call transcript and preview coverage for more detail on margins, spending, and the turnaround plan, but these items are mainly context rather than new catalysts. Article Title

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on FEIM. Weiss Ratings reiterated a “hold (c+)” rating on shares of Frequency Electronics in a research report on Monday, June 15th. Wall Street Zen raised Frequency Electronics from a “strong sell” rating to a “sell” rating in a research note on Saturday, July 4th. Finally, Freedom Capital upgraded Frequency Electronics from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $43.67.

Frequency Electronics Price Performance

The firm’s fifty day simple moving average is $65.69 and its 200 day simple moving average is $56.77. The company has a market capitalization of $583.22 million, a price-to-earnings ratio of 79.03 and a beta of 0.71.

Frequency Electronics (NASDAQ:FEIM) last announced its earnings results on Wednesday, July 15th. The communications equipment provider reported ($0.50) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.76). The firm had revenue of $15.40 million for the quarter, compared to analyst estimates of $18.57 million. Frequency Electronics had a net margin of 10.78% and a return on equity of 12.69%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Invesco Ltd. acquired a new position in shares of Frequency Electronics in the fourth quarter worth $9,446,000. Next Century Growth Investors LLC boosted its position in Frequency Electronics by 200.4% during the fourth quarter. Next Century Growth Investors LLC now owns 219,463 shares of the communications equipment provider’s stock valued at $11,816,000 after purchasing an additional 146,397 shares during the last quarter. Millennium Management LLC boosted its position in Frequency Electronics by 403.6% during the third quarter. Millennium Management LLC now owns 136,976 shares of the communications equipment provider’s stock valued at $4,645,000 after purchasing an additional 109,776 shares during the last quarter. Two Sigma Investments LP grew its stake in Frequency Electronics by 179.4% in the third quarter. Two Sigma Investments LP now owns 139,687 shares of the communications equipment provider’s stock valued at $4,737,000 after purchasing an additional 89,698 shares in the last quarter. Finally, UBS Group AG grew its stake in Frequency Electronics by 63.8% in the third quarter. UBS Group AG now owns 208,334 shares of the communications equipment provider’s stock valued at $7,065,000 after purchasing an additional 81,165 shares in the last quarter. Institutional investors and hedge funds own 58.60% of the company’s stock.

Frequency Electronics Company Profile

Frequency Electronics, Inc (NASDAQ:FEIM) is a U.S.-based designer and manufacturer of precision frequency control products and timing solutions. The company’s portfolio includes oven-controlled crystal oscillators (OCXOs), atomic frequency standards such as rubidium oscillators, GPS-disciplined oscillators (GPSDOs), microwave synthesizers, and integrated timing subsystems. These products are used to provide stable and accurate frequency and time references for applications that demand high performance and reliability.

FEI serves a broad range of markets, including telecommunications, aerospace and defense, satellite and space systems, test and measurement equipment, and critical infrastructure.