Frequency Electronics (NASDAQ:FEIM) Upgraded by Wall Street Zen to Hold Rating

Wall Street Zen upgraded shares of Frequency Electronics (NASDAQ:FEIM) from a sell rating to a hold rating in a research note issued to investors on Saturday,Wall Street Zen reports.

Separately, Weiss Ratings cut shares of Frequency Electronics from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $43.67.

Frequency Electronics Stock Up 42.4%

FEIM opened at $88.38 on Friday. Frequency Electronics has a 52 week low of $26.05 and a 52 week high of $89.76. The business has a fifty day simple moving average of $66.01 and a 200-day simple moving average of $60.82. The firm has a market cap of $988.09 million, a P/E ratio of 353.52 and a beta of 0.72.

Frequency Electronics (NASDAQ:FEIM) last posted its quarterly earnings data on Thursday, September 10th. The communications equipment provider reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.26. Frequency Electronics had a return on equity of 4.59% and a net margin of 3.68%.The firm had revenue of $23.45 million for the quarter, compared to the consensus estimate of $17.85 million.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Frequency Electronics during the 2nd quarter worth $34,273,000. Invesco Ltd. acquired a new position in shares of Frequency Electronics in the fourth quarter valued at approximately $9,446,000. Next Century Growth Investors LLC raised its stake in shares of 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 worth $11,816,000 after purchasing an additional 146,397 shares during the last quarter. Millennium Management LLC raised its stake in shares of Frequency Electronics by 403.6% during the third quarter. Millennium Management LLC now owns 136,976 shares of the communications equipment provider’s stock worth $4,645,000 after purchasing an additional 109,776 shares during the last quarter. Finally, Two Sigma Investments LP grew its position in Frequency Electronics by 179.4% in the 3rd quarter. Two Sigma Investments LP now owns 139,687 shares of the communications equipment provider’s stock valued at $4,737,000 after buying an additional 89,698 shares during the last quarter. Institutional investors and hedge funds own 58.60% of the company’s stock.

Trending Headlines about Frequency Electronics

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

• Positive Sentiment: Record revenue and earnings beat: Fiscal Q1 revenue rose 70% year over year and 52% sequentially to a record $23.5 million, exceeding analyst expectations of approximately $17.9 million. Adjusted earnings of $0.41 per share surpassed the $0.15 consensus estimate. Frequency Electronics fiscal 2027 first-quarter results
• Positive Sentiment: Visibility from a growing backlog: Funded backlog reached a record $129 million, up 82% year over year and 16% sequentially. This supports expectations for continued revenue growth in the communications and aerospace markets. Frequency Electronics financial results announcement
• Positive Sentiment: Strong operating leverage and expansion plans: Management reported an operating margin above 22% and indicated that capacity expansion, funded in part by a $73 million equity raise, could accelerate progress toward its $150 million-plus fiscal 2029 revenue target. The prospect of pulling forward that target is supporting investor optimism. Frequency Electronics capacity expansion update
• Neutral Sentiment: The earnings call reinforced the company’s growth outlook, but investors will be watching whether Frequency Electronics can convert its backlog into sustained revenue and profitability as production capacity expands. Frequency Electronics Q1 2027 earnings call transcript
• Negative Sentiment: Despite the earnings beat, the company still reported a negative net margin of 1.43% and negative return on equity of 1.56%. The equity financing also creates potential shareholder dilution, although management expects the investment to support higher future growth.

About Frequency Electronics

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.