Boston, MA 07/02/2014 (wallstreetpr) – Rubicon Technology, Inc. (NASDAQ:RBCN) does not appear as a falling knife when viewed with the naked eye. However, the stock is something like it if the latest development in the stock’s earnings estimates is anything to give a reason.
In the past 30 days, the stock witnessed no less than five negative earnings revisions for the current quarter without a revision on the opposite direction. As such, the consensus earnings estimate on the stock has moved down such that analysts now expect the company to suffer a loss of 42 cents per share instead of the estimated loss of 23 cents per share in the past one month.
As if that is not enough, Rubicon Technology, Inc. (NASDAQ:RBCN) also suffered in its full-year earnings estimates in the past 30 days. The company has witnessed five downward revisions in earnings estimates with no positive revision in the same duration. The overwhelming negative revisions have pushed the consensus earnings estimate down, whereby the company is expected to suffer a loss of $1.33 per share whereas it was expected to suffer a loss of 68 cents per share a month ago.
Rubicon Technology, Inc. (NASDAQ:RBCN) has of late had a dismal performance on both its stock price and financial performance. The stock is down nearly 17 percent in the past month. As for financial performance, the company reported a loss of 43 cents in the most recent quarter, yet analysts expected a loss of 33 cents per share for the quarter.
Hold or drop
The company has been the subject of several researchers whereby most analysts covering the stock appear bearish about its prospects. TheStreet recently downgraded the stock to a Sell from a Hold and Zacks has also followed suit. Zacks believes that eliminating the stock from the investment portfolio can help maximize portfolio profits.
The stock of Rubicon Technology, Inc. (NASDAQ:RBCN) carries a consensus Hold and average price target of $12 per share. The average price target suggests a modest premium on the prevailing price.