NEW YORK (TheStreet) -- Neustar (NSR) stock is sliding Monday after an email from the North American Numbering Council (NANC) to the FCC suggested an Ericsson (ERIC) unit was close to winning a phone number management contract currently held by Neustar. Neustar's current contract expires June 30, 2015. The company is currently competing for the next five-year contract.
"This most recent development is troubling given that the selection of the country's next LNPA is an important FCC responsibility in the communications field. The process has also been marred by apparent leaks of confidential information, as well as substantive and other procedural problems... The NANC recommendation is by no means the end of the process," the company wrote in a statement.
By early afternoon, shares had dropped 7.8% to $24.59. Trading volume of 3.7 million shares was more than double its three-month daily average.
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TheStreet Ratings team rates NEUSTAR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEUSTAR INC (NSR) a HOLD. The primary factors that have impacted our rating are mixed --some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income."