Are Institutions Shedding Interest in Comtech Telecommunications Corp. (NASDAQ:CMTL)?

According to the latest SEC Filings, institutions owning shares of Comtech Telecommunications Corp. (NASDAQ:CMTL) have decreased their positions by -1.53%.  Institutions now own 89.50% of the company.

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TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Comtech Telecommunications Corp. (NASDAQ:CMTL)’s RSI (Relative Strength Index) is 50.81.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Comtech Telecommunications Corp.’s EPS is 1.24.  Their EPS should be compared to other companies in the Technology sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Comtech Telecommunications Corp.’s  P/E ratio is 27.89. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Comtech Telecommunications Corp.’s  PEG is 1.64.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 6.10%.  Calculated by dividing Comtech Telecommunications Corp.’s annual earnings by its total assets, investors will note a return on assets of 3.60%.  Finally, Comtech Telecommunications Corp.’s return on investment stands at 4.10% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.20 for Comtech Telecommunications Corp. (NASDAQ:CMTL).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.