ORBCOMM (ORBC) Trading 9.8% Higher on Better-Than-Expected Earnings

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ORBCOMM Inc (NASDAQ:ORBC) traded up 9.8% on Wednesday following a better than expected earnings announcement. The company traded as high as $9.94 and last traded at $9.53. 1,366,791 shares traded hands during mid-day trading, an increase of 136% from the average session volume of 578,693 shares. The stock had previously closed at $8.68.

The technology company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.01. ORBCOMM had a negative net margin of 22.71% and a negative return on equity of 12.82%. The business had revenue of $71.04 million during the quarter, compared to the consensus estimate of $75.37 million. During the same quarter in the prior year, the firm earned ($0.10) EPS. The business’s revenue was up 2.4% on a year-over-year basis.

Several research firms have commented on ORBC. BidaskClub downgraded shares of ORBCOMM from a “sell” rating to a “strong sell” rating in a report on Saturday, October 27th. ValuEngine downgraded shares of ORBCOMM from a “buy” rating to a “hold” rating in a report on Saturday, October 27th. Finally, Zacks Investment Research downgraded shares of ORBCOMM from a “hold” rating to a “sell” rating in a report on Saturday, August 4th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $14.00.

In other ORBCOMM news, Director Jerome B. Eisenberg sold 5,000 shares of the stock in a transaction dated Monday, October 1st. The shares were sold at an average price of $10.86, for a total transaction of $54,300.00. Following the completion of the transaction, the director now owns 930,305 shares of the company’s stock, valued at approximately $10,103,112.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 7.80% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Goodman Financial Corp boosted its holdings in shares of ORBCOMM by 5.2% during the 2nd quarter. Goodman Financial Corp now owns 640,029 shares of the technology company’s stock valued at $6,464,000 after purchasing an additional 31,560 shares during the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of ORBCOMM by 3.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 676,732 shares of the technology company’s stock valued at $6,835,000 after acquiring an additional 24,837 shares during the last quarter. Federated Investors Inc. PA lifted its holdings in shares of ORBCOMM by 48.0% in the 2nd quarter. Federated Investors Inc. PA now owns 838,926 shares of the technology company’s stock valued at $8,473,000 after acquiring an additional 272,010 shares during the last quarter. Ardsley Advisory Partners lifted its holdings in shares of ORBCOMM by 53.3% in the 2nd quarter. Ardsley Advisory Partners now owns 115,000 shares of the technology company’s stock valued at $1,162,000 after acquiring an additional 40,000 shares during the last quarter. Finally, HPM Partners LLC lifted its holdings in shares of ORBCOMM by 8.1% in the 2nd quarter. HPM Partners LLC now owns 609,007 shares of the technology company’s stock valued at $6,151,000 after acquiring an additional 45,568 shares during the last quarter. 75.18% of the stock is owned by institutional investors and hedge funds.

The company has a current ratio of 2.53, a quick ratio of 1.81 and a debt-to-equity ratio of 0.94. The firm has a market cap of $671.06 million, a P/E ratio of -11.35 and a beta of 1.07.

ORBCOMM Company Profile (NASDAQ:ORBC)

ORBCOMM Inc provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally. The company offers solutions, including network connectivity, devices, device management, and Web reporting applications that are designed to track, monitor, control, and enhance security for various assets, including trailers, trucks, rail cars, sea containers, power generators, fluid tanks, marine vessels, diesel or electric powered generators, oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime, and government.

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