NEW YORK (TheStreet) -- Wireless Telecom Group (WTT - Get Report) shares are up 5.9% to $2.68 in trading on Friday.
The jump follows the company's announcement that it had repurchased 4,815,110 of its common stock representing approximately 20% of its total outstanding shares prior to the repurchase.
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The company paid approximately $9.6 million or about $2 per share.
Separately, Horton Capital Fund acquired 1,657,556 shares, or about 8.6% of the company.
"We are excited to have completed the transaction and look forward to the growth opportunities ahead. We believe the stock repurchase represents an attractive use of our capital and reflects our commitment to the enhancement of long-term shareholder value," said CEO Paul Genova.
TheStreet Ratings team rates WIRELESS TELECOM GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WIRELESS TELECOM GROUP INC (WTT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 19.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WTT's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.30, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 33.33% and other important driving factors, this stock has surged by 61.63% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WTT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WIRELESS TELECOM GROUP INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, WIRELESS TELECOM GROUP INC increased its bottom line by earning $0.13 versus $0.10 in the prior year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income increased by 27.5% when compared to the same quarter one year prior, rising from $0.86 million to $1.09 million.
- You can view the full analysis from the report here: WTT Ratings Report