Sequans Communications S.A. (SQNS) Stock Rating Reaffirmed by Needham & Company LLC
Sequans Communications S.A. (NYSE:SQNS)‘s stock had its “buy” rating reiterated by equities research analysts at Needham & Company LLC in a research note issued to investors on Wednesday. They currently have a $3.00 price objective on the semiconductor company’s stock. Needham & Company LLC’s target price suggests a potential upside of 55.44% from the stock’s current price.
The analysts wrote, “SQNS negatively pre-announced 3Q17 results, reducing 3Q17 revenue expectations by ~$5MM from the prior mid-point and shaving $0.01 from the upper end of its EPS range due to continued weakness/pricing pressure in emerging markets broadband CPE equipment and an inventory correction in the Verizon Jetpack business. A Vertical Markets deal also slipped to 4Q17. Management expects the Broadband weakness to continue through year-end. While the CAT 1/CAT M IoT outlook remains intact, we are forced to reduce our forward estimates, which in turn will once again raise concerns about the balance sheet and cash burn. While this near-term impact is disappointing, we remain positive on SQNS given the company’s leadership in narrowband LTE.””
Several other equities analysts also recently issued reports on SQNS. B. Riley reaffirmed a “buy” rating and set a $6.00 price target (up previously from $4.50) on shares of Sequans Communications in a research note on Wednesday, June 7th. Zacks Investment Research downgraded shares of Sequans Communications from a “buy” rating to a “hold” rating in a research note on Wednesday, July 5th. BidaskClub raised shares of Sequans Communications from a “sell” rating to a “hold” rating in a research note on Wednesday, July 19th. Robert W. Baird initiated coverage on shares of Sequans Communications in a research note on Wednesday, August 2nd. They set an “outperform” rating and a $5.00 price target for the company. Finally, Canaccord Genuity raised their price target on shares of Sequans Communications from $5.00 to $6.00 and gave the company a “buy” rating in a research note on Wednesday, August 2nd. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and six have issued a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $5.03.
Sequans Communications (NYSE:SQNS) traded down 36.93% during mid-day trading on Wednesday, reaching $1.93. 8,059,149 shares of the company’s stock were exchanged. The stock has a 50-day moving average of $3.15 and a 200-day moving average of $3.41. The firm’s market cap is $153.94 million. Sequans Communications has a 12 month low of $1.65 and a 12 month high of $4.75.
Sequans Communications (NYSE:SQNS) last released its quarterly earnings results on Tuesday, August 1st. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.06) by ($0.01). The business had revenue of $13.22 million for the quarter, compared to the consensus estimate of $14.48 million. Sequans Communications had a negative net margin of 42.44% and a negative return on equity of 212.46%. Sequans Communications’s revenue was up 33.8% on a year-over-year basis. During the same period in the previous year, the business posted ($0.10) EPS. Analysts anticipate that Sequans Communications will post ($0.22) earnings per share for the current year.
Several hedge funds have recently added to or reduced their stakes in the company. AWM Investment Company Inc. raised its stake in shares of Sequans Communications by 5.6% during the second quarter. AWM Investment Company Inc. now owns 7,727,240 shares of the semiconductor company’s stock valued at $25,577,000 after acquiring an additional 407,010 shares during the last quarter. Verition Fund Management LLC acquired a new stake in shares of Sequans Communications during the second quarter worth $220,000. Manatuck Hill Partners LLC increased its position in shares of Sequans Communications by 47.2% during the second quarter. Manatuck Hill Partners LLC now owns 312,000 shares of the semiconductor company’s stock worth $1,033,000 after buying an additional 100,000 shares during the period. Tudor Investment Corp ET AL acquired a new stake in shares of Sequans Communications during the second quarter worth $162,000. Finally, B. Riley Financial Inc. acquired a new stake in shares of Sequans Communications during the second quarter worth $841,000. 31.86% of the stock is owned by hedge funds and other institutional investors.
About Sequans Communications
Sequans Communications SA is a fabless designer, developer and supplier of fourth Generation long term evolution (4G LTE) semiconductor solutions for wireless broadband applications, with a specific focus on the single-mode device market. Its semiconductor solutions integrate baseband processor and radio frequency (RF) transceiver integrated circuits (ICs) along with its signal processing techniques, algorithms and software stacks.
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