GTT Communications Inc. [GTT] is -52.86% lower this YTD. Is it still time to buy?

GTT Communications Inc. [NYSE: GTT] traded at a high on 10/16/20, posting a 6.79 gain after which it closed the day’ session at $5.35. The company report on October 16, 2020 that GTT Reaches $2.15 Billion Definitive Agreement to Sell Infrastructure Division to I Squared Capital.

GTT Communications, Inc. (NYSE: GTT), a leading global cloud networking provider to multinational clients, announced today that the company has signed a definitive purchase agreement to sell its infrastructure division to I Squared Capital, an independent global infrastructure investment firm, for $2.15 billion.1 The infrastructure division consists of GTT’s business and activities of providing Pan-European, North American, sub-sea and trans-Atlantic fiber network and data center infrastructure services to customers.

GTT provides a comprehensive portfolio of cloud networking services over its global Tier 1 IP network that includes traditional and software-defined wide area networking, global SIP trunking, advanced solutions, security and internet services.

The results of the trading session contributed to over 2367244 shares changing hands. Over the past one week, the price volatility of GTT Communications Inc. stands at 10.28% while the volatility over the past one month is 8.50%.

The market cap for GTT stock reached $294.68 million, with 57.26 million shares outstanding and 42.59 million shares in the current float. Compared to the average trading volume of 465.56K shares, GTT reached a trading volume of 2367244 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about GTT Communications Inc. [GTT]?

Raymond James have made an estimate for GTT Communications Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on August 11, 2020. The new note on the price target was released on May 26, 2020, representing the official price target for GTT Communications Inc. stock. Previously, the target price had yet another drop from $10 to $7, while SunTrust kept a Hold rating on GTT stock.

The Average True Range (ATR) for GTT Communications Inc. is set at 0.52, with the Price to Sales ratio for GTT stock in the period of the last 12 months amounting to 0.17. The Price to Book ratio for the last quarter was 1.56, with the Price to Cash per share for the same quarter was set at 1.93. Price to Free Cash Flow for GTT in the course of the last twelve months was 2.07 with Quick ratio for the last quarter at 0.60.

How has GTT stock performed recently?

GTT Communications Inc. [GTT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.21. With this latest performance, GTT shares dropped by -15.48% in over the last four-week period, additionally sinking by -45.41% over the last 6 months – not to mention a drop of -25.17% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GTT stock in for the last two-week period is set at 53.91, with the RSI for the last a single of trading hit 57.06, and the three-weeks RSI is set at 49.67 for GTT Communications Inc. [GTT]. The present Moving Average for the last 50 days of trading for this stock 5.22, while it was recorded at 5.05 for the last single week of trading, and 8.76 for the last 200 days.

GTT Communications Inc. [GTT]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and GTT Communications Inc. [GTT] shares currently have an operating margin of +9.22 and a Gross Margin at +31.09. GTT Communications Inc.’s Net Margin is presently recorded at -6.13.

Return on Total Capital for GTT is now 4.22, given the latest momentum, and Return on Invested Capital for the company is -2.86. Return on Equity for this stock declined to -30.01, with Return on Assets sitting at -2.28. When it comes to the capital structure of this company, GTT Communications Inc. [GTT] has a Total Debt to Total Equity ratio set at 1,240.98. Additionally, GTT Total Debt to Total Capital is recorded at 92.54, with Total Debt to Total Assets ending up at 75.93. Long-Term Debt to Equity for the company is recorded at 1,203.30, with the Long-Term Debt to Total Capital now at 89.73.

Reflecting on the efficiency of the workforce at the company, GTT Communications Inc. [GTT] managed to generate an average of -$34,161 per employee. Receivables Turnover for the company is 9.88 with a Total Asset Turnover recorded at a value of 0.37.GTT Communications Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.60.

Earnings analysis for GTT Communications Inc. [GTT]

With the latest financial reports released by the company, GTT Communications Inc. posted -0.59/share EPS, while the average EPS was predicted by analysts to be reported at -0.04/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -1,375.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GTT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for GTT Communications Inc. go to 25.00%.

Insider trade positions for GTT Communications Inc. [GTT]

There are presently around $215 million, or 77.00% of GTT stock, in the hands of institutional investors. The top three institutional holders of GTT stocks are: SPRUCE HOUSE INVESTMENT MANAGEMENT LLC with ownership of 15,875,000, which is approximately 0% of the company’s market cap and around 7.40% of the total institutional ownership; NEUBERGER BERMAN GROUP LLC, holding 3,810,410 shares of the stock with an approximate value of $20.39 million in GTT stocks shares; and CONIFER MANAGEMENT, L.L.C., currently with $19.85 million in GTT stock with ownership of nearly 0% of the company’s market capitalization.

Positions in GTT Communications Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 47 institutional holders increased their position in GTT Communications Inc. [NYSE:GTT] by around 2,017,392 shares. Additionally, 42 investors decreased positions by around 4,559,660 shares, while 21 investors held positions by with 33,524,872 shares. The mentioned changes placed institutional holdings at 40,101,924 shares, according to the latest SEC report filing. GTT stock had 17 new institutional investments in for a total of 402,955 shares, while 16 institutional investors sold positions of 1,873,982 shares during the same period.

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