Ceragon(CRNT, $5.71)shares got rating cut to underperform from buy from Needham
Shares of Israeli cellphone communications equipment maker Ceragon Networks got a double downgrade from analysts at Needham.
Needham analysts lowered their rating on the shares to underperform from buy, amid valuation concerns. The stock has rallied more than 120% year to date.
Needham analyst Alex Henderson says the firm "cannot justify the current valuation,". The analyst mentioned further that even a buyout would be unlikely to justify recent moves.
Ceragon shares climbed more than +30% on Tuesday, and has more than doubled over the past three trading days.
Ceragon gained 33% on Tuesday as ARK Israel Innovative Technology ETF (IZRL) added 44,380 shares of Ceragon, bringing its total holdings to nearly 856,000 shares( according to Bloomberg).
Aroon Indicator for CRNT shows an upward move is likely
CRNT's Aroon Indicator triggered a bullish signal on December 18, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 200 similar instances where the Aroon Indicator showed a similar pattern. In of the 200 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where CRNT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on December 24, 2024. You may want to consider a long position or call options on CRNT as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for CRNT moved above the 200-day moving average on December 02, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRNT advanced for three days, in of 249 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CRNT moved out of overbought territory on December 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for CRNT turned negative on December 17, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRNT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CRNT broke above its upper Bollinger Band on November 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CRNT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.960) is normal, around the industry mean (8.299). P/E Ratio (43.857) is within average values for comparable stocks, (91.676). Projected Growth (PEG Ratio) (0.979) is also within normal values, averaging (1.815). CRNT has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (0.756) is also within normal values, averaging (26.790).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of high-capacity LTE-ready wireless backhaul solutions
Industry TelecommunicationsEquipment