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

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GTT Communications Inc (NYSE:GTT) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. 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) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.21) by ($0.25). GTT Communications had a negative net margin of 7.66% and a negative return on equity of 13.01%. The firm had revenue of $420.00 million during the quarter, compared to the consensus estimate of $425.70 million. During the same quarter in the prior year, the firm posted ($0.43) earnings per share. The company’s revenue was down 6.4% on a year-over-year basis.

A number of research analysts have weighed in on GTT shares. Zacks Investment Research lowered GTT Communications from a “hold” rating to a “sell” rating in a report on Wednesday, October 9th. SunTrust Banks reduced their target price on GTT Communications from $42.00 to $9.00 and set a “buy” rating for the company in a report on Friday, August 9th. Craig Hallum lowered GTT Communications from a “buy” rating to a “hold” rating in a report on Friday, August 9th. Oppenheimer reduced their target price on GTT Communications from $42.00 to $12.00 and set an “outperform” rating for the company in a report on Friday, August 9th. Finally, Raymond James lowered GTT Communications from an “outperform” rating to a “market perform” rating and set a $11.50 target price for the company. in a report on Monday, August 12th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and four have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average price target of $29.31.

In other GTT Communications news, Director Julius W. Erving II acquired 5,100 shares of the business’s stock in a transaction dated Tuesday, September 3rd. The stock was bought at an average price of $9.82 per share, with a total value of $50,082.00. Following the completion of the acquisition, the director now owns 25,502 shares of the company’s stock, valued at $250,429.64. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Spruce House Partnership Lp acquired 520,000 shares of the business’s stock in a transaction dated Thursday, August 29th. The shares were acquired at an average cost of $8.35 per share, with a total value of $4,342,000.00. The disclosure for this purchase can be found here. In the last ninety days, insiders have acquired 790,323 shares of company stock valued at $6,460,973 and have sold 36,063 shares valued at $271,420. 40.84% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD grew its holdings in shares of GTT Communications by 3.3% during the second quarter. Price T Rowe Associates Inc. MD now owns 4,201,620 shares of the technology company’s stock worth $73,949,000 after purchasing an additional 134,739 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of GTT Communications by 1.7% during the second quarter. Vanguard Group Inc. now owns 3,942,841 shares of the technology company’s stock worth $69,393,000 after purchasing an additional 66,855 shares in the last quarter. Third Point LLC purchased a new position in shares of GTT Communications during the second quarter worth about $53,945,000. Goodnow Investment Group LLC grew its holdings in shares of GTT Communications by 606.6% during the second quarter. Goodnow Investment Group LLC now owns 739,953 shares of the technology company’s stock worth $13,023,000 after purchasing an additional 635,233 shares in the last quarter. Finally, Bislett Management LLC grew its holdings in shares of GTT Communications by 26.3% during the second quarter. Bislett Management LLC now owns 505,000 shares of the technology company’s stock worth $8,888,000 after purchasing an additional 105,000 shares in the last quarter. 83.89% of the stock is owned by institutional investors.

The company has a debt-to-equity ratio of 9.85, a current ratio of 0.57 and a quick ratio of 0.57. The company has a market cap of $476.82 million, a PE ratio of -3.94 and a beta of 1.51. The company has a fifty day moving average price of $7.63 and a 200 day moving average price of $15.62.

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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