Shares of Pareteum Corporation (NASDAQ:TEUM) fell -1.33% to reach at $3.00 during previous trading session. The company has experienced volume of 1,526,185 shares while on average the company has a capacity of trading 4.99M share.
A short report released last week concerning financial results stoked fears among Parateum (TEUM) shareholders, sending shares down 40% in just a few hours on Friday. But Monday, CEO Hal Turner addressed shareholders, stating “certain short-sellers have used questionable tactics, counting leveraging the media to misrepresent facts and make anonymous spurious claims against the company and its officers,” which many felt was a strong defense against Friday’s drop, as shares rose 16%. But recently, the stock broke down again, losing nearly 9%.
What’s next for Parateum stock? Northland Capital analyst Michael Latimore remains bullish, reiterating his Outperform rating on TEUM, with a $8.50 price target, which implies over 200% upside from current levels.
Parateum had a total of 243% organic growth in 1Q19, and Latimore sees these results growing significantly throughout 2Q with organic growth of over 100% for the rest of the year. The analyst estimates that the company should be able to do no less than 27% of pro forma organic growth. This shouldn’t be too difficult because of the fact that it was attainable in Q1 and Q2 is already on the right track.
Latimore is confident that Parateum’s acquisition integration has greatly improved the company’s prominence into organic growth. The analyst says the acquisitions “add scale,” and “would not be surprised if the number of deals launch by quarter increases throughout the year.”
An important factor of the acquisitions is the “increase [in] prospect for cross selling,” says Latimore. He continues, “a full mobility service sold to a WiFi customer more than doubles the revenue from that customer.” The company’s customer list numbers over 1,000, and includes large corporations such as Vodafone, Deutsche Telekom, ACN ($800 mil business, acneuro.co.uk). Given the size of these customers, different demand and types of services, have been fulfilled by acquisitions by Parateum.
Latimore thinks Parateum is in a good place to fill a void in the on-premises business and operations support systems market, given that “SaaS options in that space are limited…and the legacy vendors cannot migrate their outdated technology to the SaaS architecture smoothly.” Lattimore says, the company “has constructed a platform that is easy to consumer via APIs,” which further promotes buying on its platform.
All in all, Wall Street has not given up on Parateum just yet, as TipRanks analytics showcase the stock as a Strong Buy. Out of 5 analysts polled in the last 3 months, all 5 are bullish on TEUM stock. With a potential upside of 190%, the stock’s consensus target price stands at $9.00.
Pareteum Corporation (NASDAQ:TEUM) holds the market capitalization of $445.63M along with 146.59M outstanding shares. During the last trade, stock’s minimum price has been reached out at $2.91 while the maximum trading price moved at $3.14. Currently the stock price is moving 106.86% off from the highest level of twelve months and -49.42% above from twelve months low. Pareteum Corporation (NASDAQ:TEUM) marked 52-week highest price level of $5.93 on Mar 27, 2019 and 52-week lowest price level of $1.45 on Apr 1, 2019.
As of current trade, Pareteum Corporation (NASDAQ:TEUM) has shown weekly downbeat performance of -10.85%. Its six months performance indicated a bullish 84.24% movement while its yearly performance reflected a positive trend of 16.03%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 79.88%. Shares of Pareteum Corporation (NASDAQ:TEUM) currently have an ABR of 1.17, derived from a total of 6 opinions. The company’s price sits -29.09% below from its 50-day moving average of $4.1840 and -3.65% below from the stock’s 200-day moving average of $3.3898. The company has Relative Strength Index (RSI 14) of 37.84 along with Average True Range (ATR 14) of 0.44. Its weekly and monthly volatility is 29.81%, 12.20% respectively. The company’s beta value is at 1.19.
Pareteum Corporation currently has a PEG ratio of 0 where as its P/E ratio is 0. The company’s price to sales ratio for trailing twelve months is 8.67 and price to book ratio for most recent quarter is 1.92, whereas price to cash per share for the most recent quarter is 41.65. Pareteum Corporation (NASDAQ:TEUM)’s price to free cash flow for trailing twelve months is 0. Its quick ratio for most recent quarter is 1.10 along with current ratio for most recent quarter of 1.10. Total debt to equity ratio of the company for most recent quarter is 0.14 whereas long term debt to equity ratio for most recent quarter is 0.14. Pareteum Corporation (NASDAQ:TEUM) has a Return on Assets of -14.30%. The company currently has a Return on Equity of -19.00% and Return on Investment of -10.90%.