Short Bets Getting Lower For CommScope Holding Company, Inc. (COMM) Stock

For the period that ended November 15, 2019, the short interest in CommScope Holding Company, Inc. (NASDAQ:COMM) stock is on the down. The 6.07% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 2.1 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 13.99 million. That number was 903,685 less shares compared with the total of 14.9 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for COMM at the November 15th settlement surged to 5,427,749, versus 3,739,424 at the October 31st report. That led days to cover to move at 2.578225, a 35.28% decrease compared to the 3.983941 days to cover recorded at the prior short interest data release.

On December 03, 2019, CommScope Holding Company, Inc. (NASDAQ:COMM) shares lost -1.8% or -0.24 points to close at $13.12 with a thin trading volume of 3.123 million shares. It opened the trading session at $12.85, the shares rose to $13.16 and dropped to $12.65, the range by which the price of stock traded the whole day. The company now has a market cap of $2.57 billion and currently has 196.1 million outstanding shares. CommScope Holding Company, Inc. (COMM) stock has accumulated 16 percent of market value in 21 trading days.

COMM stock’s trailing 3-year beta is 1.61, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$2.86 share in the trailing 52 weeks. The stock’s value fallen -19.95 percent year to date (YTD) compared to a decline of -27.51 percent in 52 week’s period. The firm’s shares are still trading -51.41 percent below its 1-year high of $27.00 and 37.82 percent up from 52-week low of $9.52. The average consensus ranking on the company is 2.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

CommScope Holding Company, Inc. (COMM) is most likely going to rise 39.63 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $23-month high price target. This represents a whopping 75.3 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $18.5, which means a return possibility of 41.01 percent in comparison with the closing price of the stock of $13.12 on December 03. The lowest price set for the stock is $14 — just above 6.71 percent from COMM share price now.

Past records have indicated that shares in CommScope Holding Company, Inc. rose on 15 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of COMM’s Q4 earnings on February 20. Analysts are predicting revenue to climb 116.4 percent to $2.29B in the financial fourth quarter, while EPS will soar by about -35.29 percent to $0.33 per share. In the last quarter, it earnings of $0.66 per share came better than the $0.33879, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.06B, missing the $1.07B analysts had expected. Earnings are seen to rise by -22.2 percent this year, 7.83 percent in the coming year and the trend continues by 4.58 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at CommScope Holding Company, Inc. (NASDAQ:COMM) and observe the pattern. The earliest insider trade happened on 11/15/2019. DRENDEL FRANK M parted with a total of 153.88 thousand shares of the firm at average share price of $15.08. The total amount for the sale was set at $2.32 million. On completing this exchange, the Director account balance was 2.48 million shares. The stock lost -13 percent from that insider sale. On 09/09/2019, KRAUSE L WILLIAM, Director, did a purchase of 21.25 thousand shares at a price of $11.87 per share. This increased 252.24 thousand shares to the insider’s fortune and the stock experienced a 10.53 percent rally in price since the news became public. This exchange saw 80.84 thousand shares get into the Director account.

On 06/17/2019, Director DRENDEL FRANK M recorded a sale transaction valued at $1.28 million. The sale at $15.84 a share has eliminated 80.8 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -17.17 percent decrease since the transaction reporting date. The company insider is left with 2.48 million shares remaining in the account. McClelland Bruce William, who works as EVP & COO at the company, performed a purchase of 3.5 thousand shares in a transaction worth $63 thousand. The acquisition recorded on 05/22/2019 was priced at $18 per share. The stock price plunged -27.11 percent since the transaction. McClelland Bruce William currently holds a stake of 81.48 thousand in COMM stock which is worth $1.07 million after the insider buying.

The stock is lingering around the initial support level of $12.79. After this, the following support is at the zone of $12.47. Up until the time the COMM stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 47.4 on the daily chart, and this may be a cause for concern. In case the price goes below $12.47 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $13.3 level may cause a pull-back move approaching $13.49 mark.

The industry COMM deals with has an average P/E of 37.8. Its P/B ratio is standing at 2.1X compared to the 3.4 industry average. It is additionally sporting a 0.4 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2. CommScope Holding Company, Inc. has a 29% gross profit margin, with its operating margin around -1.7%. Alongside this, the company’s net profit margin currently stands at -7.7%.