GTT Communications (NYSE:GTT) Shares Gap Down After Earnings Miss

GTT Communications Inc (NYSE:GTT) shares gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.06, but opened at $7.02. GTT Communications shares last traded at $6.61, with a volume of 30,444 shares traded.

The technology company reported ($0.46) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.25). The business had revenue of $420.00 million during the quarter, compared to analysts’ expectations of $425.70 million. GTT Communications had a negative return on equity of 13.01% and a negative net margin of 7.66%. The business’s revenue was down 6.4% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.43) EPS.

GTT has been the subject of several analyst reports. Craig Hallum downgraded GTT Communications from a “buy” rating to a “hold” rating in a report on Friday, August 9th. Raymond James downgraded GTT Communications from an “outperform” rating to a “market perform” rating and set a $11.50 price objective for the company. in a report on Monday, August 12th. SunTrust Banks reduced their price objective on GTT Communications from $42.00 to $9.00 and set a “buy” rating for the company in a report on Friday, August 9th. Zacks Investment Research downgraded GTT Communications from a “hold” rating to a “sell” rating in a report on Wednesday, October 9th. Finally, Oppenheimer reduced their price objective on GTT Communications from $42.00 to $12.00 and set an “outperform” rating for the company in a report on Friday, August 9th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $29.31.

In other GTT Communications news, major shareholder Conifer Management, L.L.C. sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, October 30th. The stock was sold at an average price of $7.36, for a total value of $220,800.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, major shareholder Spruce House Partnership Lp bought 520,000 shares of the company’s stock in a transaction on Thursday, August 29th. The stock was purchased at an average cost of $8.35 per share, for a total transaction of $4,342,000.00. The disclosure for this purchase can be found here. Over the last quarter, insiders purchased 790,323 shares of company stock valued at $6,460,973 and sold 36,063 shares valued at $271,420. 40.84% of the stock is currently owned by company insiders.

A number of large investors have recently made changes to their positions in GTT. Bessemer Group Inc. grew its stake in shares of GTT Communications by 42.6% during the 2nd quarter. Bessemer Group Inc. now owns 16,735 shares of the technology company’s stock valued at $295,000 after purchasing an additional 5,000 shares during the period. Boston Financial Mangement LLC lifted its position in shares of GTT Communications by 2.3% during the 2nd quarter. Boston Financial Mangement LLC now owns 181,243 shares of the technology company’s stock valued at $3,190,000 after buying an additional 3,994 shares in the last quarter. First Business Financial Services Inc. purchased a new position in shares of GTT Communications during the 2nd quarter valued at about $222,000. First Trust Advisors LP lifted its position in shares of GTT Communications by 415.6% during the 2nd quarter. First Trust Advisors LP now owns 80,592 shares of the technology company’s stock valued at $1,418,000 after buying an additional 64,961 shares in the last quarter. Finally, Bislett Management LLC lifted its position in shares of GTT Communications by 26.3% during the 2nd quarter. Bislett Management LLC now owns 505,000 shares of the technology company’s stock valued at $8,888,000 after buying an additional 105,000 shares in the last quarter. 83.89% of the stock is currently owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 9.85, a quick ratio of 0.57 and a current ratio of 0.57. The stock has a market capitalization of $459.91 million, a PE ratio of -4.12 and a beta of 1.51. The stock has a 50-day moving average price of $7.76 and a two-hundred day moving average price of $15.96.

About GTT Communications (NYSE:GTT)

GTT Communications, Inc provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally. The company offers private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless Internet access services; managed equipment, security, and hosting services; and voice services consisting of session initiation protocol trunking and hosted private branch exchange services.

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