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).
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where CRNT declined for three days, in of 290 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for CRNT moved out of overbought territory on February 23, 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 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
CRNT broke above its upper Bollinger Band on February 21, 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 Momentum Indicator moved above the 0 level on February 06, 2024. You may want to consider a long position or call options on CRNT as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CRNT just turned positive on February 16, 2024. Looking at past instances where CRNT's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRNT advanced for three days, in of 253 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 165 cases where CRNT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 PE Growth Rating for this company is (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 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 (1.795) is normal, around the industry mean (8.744). P/E Ratio (40.714) is within average values for comparable stocks, (87.838). Projected Growth (PEG Ratio) (0.979) is also within normal values, averaging (1.730). CRNT has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.041). P/S Ratio (0.702) is also within normal values, averaging (23.131).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Profit vs. Risk Rating rating for this company is (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 88, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of high-capacity LTE-ready wireless backhaul solutions
A.I.dvisor tells us that CRNT and KN have been poorly correlated (+31% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that CRNT and KN's prices will move in lockstep.