Zacks Investment Research Downgrades ORBCOMM (NASDAQ:ORBC) to Sell

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Zacks Investment Research cut shares of ORBCOMM (NASDAQ:ORBC) from a hold rating to a sell rating in a research report report published on Tuesday morning, Zacks.com reports.

According to Zacks, “ORBCOMM INC., is a leading global satellite data communications company, focused on Machine-to-Machine communications. Its customers include General Electric, Caterpillar Inc., Volvo Group and Komatsu Ltd. among other industry leaders. By means of a global network of twenty nine low-earth orbit satellites and accompanying ground infrastructure, ORBCOMM’s low-cost and reliable two-way data communications products and services track, monitor and control mobile and fixed assets in four core markets: commercial transportation; heavy equipment; industrial fixed assets; and marine/homeland security. The company’s products are installed on trucks, containers, marine vessels, locomotives, backhoes, pipelines, oil wells, utility meters, storage tanks and other assets. ORBCOMM is headquartered in Fort Lee, New Jersey and has a Network Control Center in Dulles, Virginia. “

Separately, BidaskClub upgraded ORBCOMM from a hold rating to a buy rating in a research note on Saturday, July 27th. Three analysts have rated the stock with a sell rating, one has issued a hold rating and four have assigned a buy rating to the company. ORBCOMM currently has a consensus rating of Hold and an average target price of $8.75.

ORBCOMM stock opened at $4.72 on Tuesday. The stock has a fifty day moving average price of $6.62 and a 200 day moving average price of $7.18. ORBCOMM has a 52 week low of $4.62 and a 52 week high of $11.25. The company has a current ratio of 3.04, a quick ratio of 2.42 and a debt-to-equity ratio of 0.99.

ORBCOMM (NASDAQ:ORBC) last released its earnings results on Wednesday, July 31st. The technology company reported ($0.08) EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of ($0.08). The firm had revenue of $67.10 million during the quarter, compared to analyst estimates of $67.40 million. ORBCOMM had a negative return on equity of 8.16% and a negative net margin of 7.71%. The business’s quarterly revenue was down 5.2% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.09) earnings per share. On average, analysts anticipate that ORBCOMM will post -0.22 earnings per share for the current year.

A number of institutional investors have recently added to or reduced their stakes in the stock. Matisse Capital grew its position in ORBCOMM by 3.9% during the first quarter. Matisse Capital now owns 45,530 shares of the technology company’s stock valued at $309,000 after acquiring an additional 1,690 shares during the period. Steward Partners Investment Advisory LLC purchased a new stake in ORBCOMM during the second quarter valued at about $95,000. Connors Investor Services Inc. grew its position in ORBCOMM by 99.8% during the first quarter. Connors Investor Services Inc. now owns 423,436 shares of the technology company’s stock valued at $2,871,000 after acquiring an additional 211,478 shares during the period. FMR LLC grew its position in ORBCOMM by 25.0% during the fourth quarter. FMR LLC now owns 1,047,947 shares of the technology company’s stock valued at $8,656,000 after acquiring an additional 209,600 shares during the period. Finally, William Blair Investment Management LLC grew its position in ORBCOMM by 8.7% during the first quarter. William Blair Investment Management LLC now owns 1,772,316 shares of the technology company’s stock valued at $12,016,000 after acquiring an additional 141,626 shares during the period. Hedge funds and other institutional investors own 82.43% of the company’s stock.

About ORBCOMM

ORBCOMM Inc provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally. The company offers network connectivity, devices, device management, and Web reporting applications that are designed to track, monitor, control, and enhance security for various assets, such as 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 transportation and supply chain, heavy equipment, fixed asset monitoring, and maritime industries, as well as for governments.

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