Inteliquent (IQNT) Troubles Cause BWS Financial to Cut Price Target
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Price: $22.90 --0%
Rating Summary:
2 Buy, 2 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 20 | New: 25
Rating Summary:
2 Buy, 2 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 20 | New: 25
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During the second quarter earnings call Inteliquent (NASDAQ: IQNT) management stated they were considering issuing a cash dividend of $4.80 to $5 per share. Today Inteliquent decided to declare a dividend of $3 per share.
In the same press release Inteliquent said "it is engaged in ongoing negotiations with one of its largest customers that may result in a significant reduction in the rates that the customer pays to the Company and require the Company to pay to terminate certain traffic to that customer."
"The latest customer issue comes on the heels of IQNT losing a medium size customer in the second quarter. From the press release, the latest customer could be of greater significance because of the amount of voice traffic IQNT runs on its network," said analyst Hamed Khorsand at BWS financial.
"The cash dividend nearly removes all of the cash IQNT ended the second quarter with. The low cash balance, and questionable future cash flows, could limit the upside of IQNT’s shares in coming months," concluded Khorsand.
BWS Financial maintained a Hold rating on Inteliquent (NASDAQ: IQNT) and cut its price target to $9.00 (from $12.00).
For an analyst ratings summary and ratings history on Inteliquent click here. For more ratings news on Inteliquent click here.
Shares of Inteliquent closed at $7.70 yesterday.
In the same press release Inteliquent said "it is engaged in ongoing negotiations with one of its largest customers that may result in a significant reduction in the rates that the customer pays to the Company and require the Company to pay to terminate certain traffic to that customer."
"The latest customer issue comes on the heels of IQNT losing a medium size customer in the second quarter. From the press release, the latest customer could be of greater significance because of the amount of voice traffic IQNT runs on its network," said analyst Hamed Khorsand at BWS financial.
"The cash dividend nearly removes all of the cash IQNT ended the second quarter with. The low cash balance, and questionable future cash flows, could limit the upside of IQNT’s shares in coming months," concluded Khorsand.
BWS Financial maintained a Hold rating on Inteliquent (NASDAQ: IQNT) and cut its price target to $9.00 (from $12.00).
For an analyst ratings summary and ratings history on Inteliquent click here. For more ratings news on Inteliquent click here.
Shares of Inteliquent closed at $7.70 yesterday.
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