Frequency Electronics (NASDAQ:FEIM) Sees Unusually-High Trading Volume – Still a Buy?

Frequency Electronics, Inc. (NASDAQ:FEIM) saw unusually-strong trading volume on Thursday . 253,774 shares traded hands during mid-day trading, an increase of 31% from the previous session’s volume of 193,413 shares.The stock last traded at $51.7490 and had previously closed at $59.27.

Key Headlines Impacting Frequency Electronics

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

• Positive Sentiment: Frequency Electronics said it has a record $111 million funded backlog, which was up sharply year over year and gives investors better visibility into future revenue. Article Title
• Positive Sentiment: The company reaffirmed a three-year revenue target of at least $150 million and said it aims to reach 50% gross margin and 30% operating margin, suggesting management is confident about longer-term profitability. Article Title
• Neutral Sentiment: Several articles published today covered the earnings call and previewed the results, but they mainly reiterated the same mix of weak near-term results and optimistic long-term goals. Article Title
• Negative Sentiment: The quarterly miss on EPS and revenue points to softer near-term execution, which is weighing on the stock despite the improved backlog outlook. Article Title

Analyst Ratings Changes

Several research firms have issued reports on FEIM. Freedom Capital upgraded Frequency Electronics from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of Frequency Electronics in a research report on Monday, June 15th. Finally, Wall Street Zen upgraded Frequency Electronics from a “strong sell” rating to a “sell” rating in a research note on Saturday, July 4th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $43.67.

Frequency Electronics Trading Down 8.7%

The firm has a market capitalization of $532.53 million, a price-to-earnings ratio of 71.74 and a beta of 0.71. The business has a 50-day moving average price of $65.69 and a two-hundred day moving average price of $56.77.

Frequency Electronics (NASDAQ:FEIM) last released its quarterly earnings data on Wednesday, July 15th. The communications equipment provider reported ($0.50) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.76). The company had revenue of $15.40 million for the quarter, compared to analyst estimates of $18.57 million. Frequency Electronics had a net margin of 10.78% and a return on equity of 12.69%.

Hedge Funds Weigh In On Frequency Electronics

Several institutional investors have recently modified their holdings of FEIM. Invesco Ltd. acquired a new position in Frequency Electronics during the 4th quarter valued at about $9,446,000. Next Century Growth Investors LLC increased its stake in shares of Frequency Electronics by 200.4% in the fourth quarter. Next Century Growth Investors LLC now owns 219,463 shares of the communications equipment provider’s stock valued at $11,816,000 after purchasing an additional 146,397 shares during the period. Millennium Management LLC increased its stake in shares of Frequency Electronics by 403.6% in the third quarter. Millennium Management LLC now owns 136,976 shares of the communications equipment provider’s stock valued at $4,645,000 after purchasing an additional 109,776 shares during the period. Two Sigma Investments LP raised its holdings in shares of Frequency Electronics by 179.4% during the third 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. Finally, UBS Group AG raised its holdings in shares of Frequency Electronics by 63.8% during the third quarter. UBS Group AG now owns 208,334 shares of the communications equipment provider’s stock valued at $7,065,000 after buying an additional 81,165 shares during the last quarter. Institutional investors own 58.60% of the company’s stock.

Frequency Electronics Company Profile

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.