Castellum (NYSEAMERICAN:CTM) Stock Gets Downgrade from Zacks Research

Castellum (NYSEAMERICAN:CTM) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks reports.

Castellum Trading Up 11.0%

CTM stock opened at $0.50 on Tuesday. The company’s 50 day moving average is $0.57 and its 200 day moving average is $0.70. The stock has a market cap of $47.48 million, a price-to-earnings ratio of -16.66 and a beta of -6.32. Castellum has a 1-year low of $0.34 and a 1-year high of $1.24.

Castellum (NYSEAMERICAN:CTM) last announced its earnings results on Thursday, November 5th. The company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.02). Castellum had a negative net margin of 5.69% and a negative return on equity of 8.75%. The company had revenue of $14.70 million for the quarter, compared to the consensus estimate of $14.90 million. As a group, sell-side analysts forecast that Castellum will post -0.04 EPS for the current fiscal year.

Castellum announced that its board has initiated a share repurchase program on Monday, November 9th that authorizes the company to repurchase $6 million in shares. This buyback authorization authorizes the company to repurchase up to 12.9% of its stock through open market purchases. Share buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In related news, COO Andrew Merriman bought 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 9th. The stock was bought at an average cost of $0.62 per share, for a total transaction of $31,000.00. Following the completion of the transaction, the chief operating officer owned 588,531 shares of the company’s stock, valued at approximately $364,889.22. The trade was a 9.28% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last ninety days, insiders have acquired 54,492 shares of company stock worth $33,426. Insiders own 8.41% of the company’s stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Castellum stock. Two Sigma Securities LLC raised its position in shares of Castellum, Inc. (NYSEAMERICAN:CTM) by 166.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 40,530 shares of the company’s stock after purchasing an additional 25,308 shares during the period. Two Sigma Securities LLC’s holdings in Castellum were worth $29,000 at the end of the most recent reporting period. 3.39% of the stock is owned by institutional investors.

About Castellum

Castellum, Inc. is a U.S.-based technology and defense contractor that provides cybersecurity, intelligence, information technology and engineering services. The company primarily serves federal government customers, including agencies and organizations involved in defense, national security and critical infrastructure. Its offerings include cybersecurity assessments and operations, network and information technology support, intelligence analysis, electronic warfare capabilities, systems engineering and mission-support services.