Zacks Investment Research Downgrades Cambium Networks (NASDAQ:CMBM) to Strong Sell

Zacks Investment Research cut shares of Cambium Networks (NASDAQ:CMBM) from a hold rating to a strong sell rating in a research report report published on Tuesday morning, Zacks.com reports. Zacks Investment Research currently has $24.00 price objective on the stock.

According to Zacks, “Cambium operates in an intensely competitive environment and is prone to rapid technology shifts. High research and development expenses for the expansion of product offerings dent its margins. It is exposed to price competition from both lower and higher cost vendors that sell functionally versatile products for greater market share. As a result, the increased pricing pressure reduces its profit margins. It relies on third-party manufacturers to design its products. Supply chain woes and shipment delays affect its relationship with channel partners. An extensive international footprint makes it vulnerable to macroeconomic risks. Its business is highly susceptible to seasonality that creates variance in quarterly revenues. However, Cambium continues to benefit from robust demand for wireless broadband connectivity with the acceptance of new products.”

Several other research analysts have also recently issued reports on the company. Northland Securities dropped their price target on Cambium Networks from $64.00 to $50.00 and set an outperform rating on the stock in a report on Friday, October 22nd. JMP Securities lowered their price target on shares of Cambium Networks from $70.00 to $60.00 and set an outperform rating on the stock in a report on Friday, October 22nd. Vertical Research cut shares of Cambium Networks from a neutral rating to a sell rating in a report on Tuesday, October 12th. Roth Capital boosted their target price on shares of Cambium Networks from $64.00 to $69.00 and gave the stock a buy rating in a research report on Tuesday, August 10th. Finally, TheStreet lowered shares of Cambium Networks from a b- rating to a c+ rating in a research report on Thursday, August 19th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of Hold and an average target price of $51.22.

Shares of NASDAQ CMBM opened at $28.11 on Tuesday. Cambium Networks has a 1 year low of $20.03 and a 1 year high of $66.40. The firm has a market cap of $745.17 million, a price-to-earnings ratio of 16.63, a PEG ratio of 1.04 and a beta of 0.56. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.65 and a current ratio of 1.98. The stock’s 50-day simple moving average is $36.21 and its 200-day simple moving average is $45.45.

Cambium Networks (NASDAQ:CMBM) last issued its earnings results on Sunday, August 8th. The company reported $0.45 EPS for the quarter, beating the Zacks’ consensus estimate of $0.33 by $0.12. Cambium Networks had a return on equity of 63.79% and a net margin of 14.09%. The company had revenue of $92.71 million during the quarter, compared to the consensus estimate of $88.17 million. During the same period in the previous year, the firm posted $0.16 earnings per share. Cambium Networks’s quarterly revenue was up 48.9% compared to the same quarter last year. As a group, research analysts predict that Cambium Networks will post 1.31 EPS for the current year.

In related news, VP Scott Imhoff sold 5,000 shares of Cambium Networks stock in a transaction that occurred on Friday, September 10th. The shares were sold at an average price of $35.69, for a total transaction of $178,450.00. Following the sale, the vice president now directly owns 10,037 shares of the company’s stock, valued at approximately $358,220.53. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Sally Rau sold 21,250 shares of the business’s stock in a transaction that occurred on Tuesday, September 7th. The stock was sold at an average price of $36.56, for a total transaction of $776,900.00. Following the sale, the general counsel now directly owns 11,250 shares in the company, valued at $411,300. The disclosure for this sale can be found here. 66.80% of the stock is currently owned by company insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Citigroup Inc. grew its stake in shares of Cambium Networks by 25.2% in the 1st quarter. Citigroup Inc. now owns 1,338 shares of the company’s stock worth $63,000 after acquiring an additional 269 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of Cambium Networks by 50.9% in the second quarter. Legal & General Group Plc now owns 1,325 shares of the company’s stock worth $64,000 after buying an additional 447 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Cambium Networks by 12.9% in the second quarter. The Manufacturers Life Insurance Company now owns 5,617 shares of the company’s stock worth $272,000 after buying an additional 644 shares in the last quarter. Quantbot Technologies LP lifted its holdings in shares of Cambium Networks by 40.5% in the first quarter. Quantbot Technologies LP now owns 2,890 shares of the company’s stock worth $135,000 after buying an additional 833 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its stake in Cambium Networks by 14,450.0% in the second quarter. PNC Financial Services Group Inc. now owns 873 shares of the company’s stock valued at $42,000 after purchasing an additional 867 shares in the last quarter. Institutional investors own 84.82% of the company’s stock.

About Cambium Networks

Cambium Networks Corp. engages in the provision of wireless broadband networking infrastructure solutions for network operators. Its products include point-to-point, enterprise Wi-Fi and switching, CCTV,software, and point-to multipoint. The company was founded in 2011 and is headquartered in Rolling Meadows, IL.

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