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).
CRNT in downward trend: 10-day moving average broke below 50-day moving average on April 21, 2022
The 10-day Moving Average for CRNT crossed bearishly below the 50-day moving average on April 21, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Current price $1.64 crossed the support line at $3.66 and is trading between $3.66 support and $0.16 support lines. Throughout the month of 04/25/22 - 05/25/22, the price experienced a -14% Downtrend. During the week of 05/18/22 - 05/25/22, the stock fell -4%.
The Moving Average Convergence Divergence Histogram (MACD) for CRNT turned negative on May 24, 2022. 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 40 similar instances when the indicator turned negative. In 33 of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
CRNT moved below its 50-day Moving Average on April 21, 2022 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
The Aroon Indicator for CRNT entered a downward trend on May 23, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CRNT's RSI Indicator exited the oversold zone, 32 of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 84%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 52 of 64 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 81%.
The Momentum Indicator moved above the 0 level on May 25, 2022. You may want to consider a long position or call options on CRNT as a result. In 65 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
Following a +6.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRNT advanced for three days, in 190 of 237 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
CRNT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 1 to 2.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CRNT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
The Tickeron Price Growth Rating for this company is 81 (best 1 - 100 worst), indicating slightly worse than average price growth. CRNT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.014) is normal, around the industry mean (6.794). P/E Ratio (0.000) is within average values for comparable stocks, (49.172). CRNT's Projected Growth (PEG Ratio) (4.600) is slightly higher than the industry average of (2.440). CRNT has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (0.469) is also within normal values, averaging (67.477).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued 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 44 (best 1 - 100 worst), pointing to consistent 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.
The Tickeron SMR rating for this company is 10 (best 1 - 100 worst), indicating very 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 Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.
The average market capitalization across the Telecommunications Equipment Industry is 3.8B. The market cap for tickers in the group ranges from 22.4K to 180.1B. CSCO holds the highest valuation in this group at 180.1B. The lowest valued company is DIRV at 22.4K.
The average weekly price growth across all stocks in the Telecommunications Equipment Industry was -3.39%. For the same Industry, the average monthly price growth was -4.61%, and the average quarterly price growth was -16.65%. BEWFF experienced the highest price growth at 13.6%, while ASNS experienced the biggest fall at -31.79%.
- 5/12/22 5:38 AM: Ceragon Networks (CRNT, $1.61) is a top weekly loser for penny stocks, falling -19.5%
- 3/3/22 7:26 AM: Ceragon Networks (CRNT, $2.22) is a top weekly gainer for penny stocks, rising +16.84%
The average weekly volume growth across all stocks in the Telecommunications Equipment Industry was 1.83%. For the same stocks of the Industry, the average monthly volume growth was -40.35% and the average quarterly volume growth was 32.32%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the RSI Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 29%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.06.
26 stocks in the group of tickers confirmed the positive outlook based on the Stochastic indicator with average odds of 75%.
The most notable companies in this group are Apple (NASDAQ:AAPL), QUALCOMM (NASDAQ:QCOM), Nokia Corp (NYSE:NOK), Ericsson (NASDAQ:ERIC), Ciena Corp (NYSE:CIEN), CommScope Holding Company (NASDAQ:COMM), Casa Systems (NASDAQ:CASA), Avaya Holdings Corp (NYSE:AVYA).
The average market capitalization across the group is 52.9B. The market cap for tickers in the group ranges from 3M to 2.3T. AAPL holds the highest valuation in this group at 2.3T. The lowest valued company is TCCO at 3M.
- 5/24/22 7:00 AM: Apple (AAPL, $143.11) saw a $128.7B market cap decrease this week
- 5/17/22 6:52 AM: Apple (AAPL, $145.54) saw a $80.1B market cap decrease this week
- 5/10/22 5:36 AM: Apple (AAPL, $152.06) saw a $91.7B market cap decrease this week
The average weekly price growth across all stocks in the group was -0.33%. For the same group, the average monthly price growth was -8.92%, and the average quarterly price growth was -26.56%. DZSI experienced the highest price growth at 16.01%, while AVYA experienced the biggest fall at -34.82%.
- 5/21/22 6:30 AM: UTStarcom Holdings (UTSI, $0.61) is a top weekly loser for penny stocks, falling -15.13%
- 5/20/22 5:28 AM: Energous (WATT, $1) is a top weekly gainer for penny stocks, rising +19.33%
- 5/19/22 8:24 AM: ClearOne (CLRO, $0.55) is a top weekly gainer for penny stocks, rising +17.24%
The average weekly volume growth across all stocks in the group was 154.08%. For the same stocks of the group, the average monthly volume growth was 81.07% and the average quarterly volume growth was 119.36%
- 5/19/22 8:16 AM: The volume for EchoStar stock increased for a consecutive 5 days, with an average daily gain of 164%
- 5/17/22 6:45 AM: The volume for EchoStar stock increased for three consecutive days, resulting in a record-breaking daily growth of 135% of the 65-Day Volume Moving Average
- 5/6/22 5:00 AM: The volume for Sonim Technologies stock increased for one day, resulting in a record-breaking daily growth of 1,012% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows