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Comtech Telecomm. Corp. (CMTL): First Eagle Investment Management Inches Up Position to 10%

As a new filing with the US Securities and Exchange Commission showed, Jean-Marie Eveillard‘s First Eagle Investment Management has picked up its position in Comtech Telecomm. Corp. (NASDAQ:CMTL). The fund reported ownership of 1.70 million shares, which represent 10.50% of outstanding stock, up from approximately 1.17 million shares the fund reported as held in its latest 13F filing.

Comtech Telecomm. Corp. (NASDAQ:CMTL)

First Eagle Investment Management owns an equity portfolio worth $41 billion, which is mostly concentrated around Basic Materials, Technology, and Services stocks. The portfolio is diversified, with holdings amassing less than 4% of the total portfolio value. The largest holding is represented by Microsoft Corporation (NASDAQ:MSFT), which amasses 3.6% of the total equity portfolio and of which the fund owns 35.67 million shares. The next two holdings are also represented by Technology stocks: Oracle Corporation (NYSE:ORCL) and Intel Corporation (NASDAQ:INTC). All three stocks performed relatively well over the last several years. Aside from Comtech, First Eagle owns several other Communication Equipment stocks, such as Cisco Systems, Inc. (NASDAQ:CSCO), of which the fund reported ownership of 42.40 million shares in its latest 13F filing.

The investor initiated a position in Comtech Telecomm. Corp. (NASDAQ:CMTL) during the fourth quarter of 2013, initially holding around 609,100 shares and raising the position during the next months. The stock of Comtech has appreciated by around 24% year-to-date. Aside from First Eagle, many other funds have been bullish on the company. In the previous round of 13F filings, Chuck Royce‘s Royce & Associates reported ownership of 504,000 shares and Israel Englander‘s Millennium Management disclosed holding 95,600 shares. Moreover, while Royce and Millennium upped their positions by 94% and 49% on the quarter respectively, Jim Simons‘ Renaissance Technologies reduced its exposure by 26% to 148,800 shares. However, all these investors commited very small portions of their equity portfolios to Comtech.

Comtech Telecomm. Corp. (NASDAQ:CMTL) has received in the last month several important contracts worth in total more than $5.0 million. The stock of the company trails a P/E of around 28, which is lower than the industry average of 43.00. However, the stock has performed better than many of its peers among small cap companies from the communication equipment industry, while the overall industry’s returns amounted only to 2.40%.

Even though Comtech Telecomm. Corp. (NASDAQ:CMTL) does not represent massive holdings in the equity portfolios of most investors, it still represents a stock that should not be overlooked. The company has beaten the analyst estimates for earnings and revenues for the last several quarters and in terms of stock price growth has outperformed many other companies from the industry. Analysts, however, currently have a consensus rating ‘Hold’ with the price target amounting to around $40.00, which is a small premium over the current price.

Disclosure: none

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