GTT stock: buy or sell?

GTT stock price: $27.24 5.79% At close on May 21st, 2019

Updated on:
May 21st, 2019

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After sliding for 4 days, Tuesday GTT boosted an amazing 5.79%, closing at $27.24. On May 13th GTT plunged a hair-raising -7.22%. Last session broke a streak of 4 red days in a row.

GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide.

Should I buy GTT stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with GTT stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is GTT Communications stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we collected 3 ratings published for GTT stock in the last month.

Is GTT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-8BTIG Researchn/aBuy
2019-3-1KeyCorpn/aOverweight
2019-3-1KeyCorpOverweightOverweight

GTT stock analysis

Daily outlook

After sliding for 4 days, Tuesday GTT boosted an amazing 5.79%, closing at $27.24.

After sliding for 4 days, Tuesday GTT boosted an amazing 5.79%, closing at $27.24. Since price and SMA200d lines crossed down on May/8, GTT fell $-13.05 per share (-32.39%). Since March when SMA50d and SMA100d crossed up, GTT price slipped $-6.07 per share (-18.22%).

GTT stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -11.79% in a week last week, GTT closed this week at $27.24 and escalated a cool 4.61%. Early April GTT climbed a brilliant 5.59% in just one week.

If you observe the weekly chart, price is in a simple uptrend, tested $25.24 level and now climbing back aiming its last top at $43.35. Since early May, when GTT stock price broke down the 40-weeks moving avarage line, it slid $-15.12 per share (-35.69%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

GTT stock chart (weekly)

GTT stock price history

GTT stock went public on November 29th, 2006 with a price of $3.401. Since then, GTT stock grew a 701.20%, with an average of 58.40% per year. If you had invested right after GTT's IPO a $1,000 in GTT stock in 2006, it would worth $7,012.00 today.

1: Adjusted price after possible price splits or reverse-splits.

GTT stock historical price chart

GTT stock reached 52-week highs on June at $52.45, and all-time highs 2018-03-26 with a price of 62.32.

GTT stock price target is $46.30

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' GTT stock price predictions in the hope that they will be met as they may be wrong and not met. We detected 3 price predictions for GTT stock published in the last 30 days:
GTT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-8BTIG ResearchLowers Targetn/a$49.00-
2019-3-1KeyCorpReiteratesn/a$45.00-
2019-3-1KeyCorpLowers Target$57.00$45.00-21.1%
(in average)$57.00$46.30-19.0%
The price prediction for GTT Communications stock is $46.30, moving in a range between $49.00 and $45.00. In average, analysts' outlook on GTT price target is negative, downsizing the prediction by a -19.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, GTT Communications didn't meet the forecasts of the analysts and posted a godawful EPS of $-0.22 per share when experts were expecting $-0.27.
GTT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.07n/a
2017-Q2-n/a0.05n/a
2017-Q3-n/a0.04n/a
2017-Q42018-03-01-0.130.04n/a
2018-Q12018-05-03-0.07-0.12n/a
2018-Q22018-08-03-0.17-0.42n/a
2018-Q32018-11-08-0.44-0.43n/a
2018-Q42019-02-28-0.27-0.22n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a dazzling growth of 80.07% to $1,490.80 million USD. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) slipped a -7.69% to -16.33%.

GTT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$157 M-$-20.79 M-13.2%-
2014$207 M31.76%$-22.98 M-11.1%10.53%
2015$369 M78.09%$19 M5.2%-184.01%
2016$522 M41.28%$5.26 M1.0%-72.75%
2017$828 M58.70%$-71.50 M-8.6%-1,459.32%
2018$1,491 M80.07%$-243.40 M-16.3%240.42%

Quarterly financial results

GTT Communications reported $454.80 M in sales for 2018-Q4, a 1.38% improvement compared to previous quarter. Reported quarter earnings marked $-53.00 million with a profit margin of -11.65%. Profit margin fell a -6.44% compared to previous quarter when profit margin was -5.22%. When comparing turnover to same quarter last year, GTT sales marked an astounding increase and climbed a 82.43%. Looking back to recent quarterly results, GTT posted 7 negative quarters in a row.
GTT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$182 M-$-13.11 M-7.2%-
2017-Q2$186 M2.11%$0.65 M0.3%-104.95%
2017-Q3$199 M6.79%$-9.52 M-4.8%-1,566.72%
2017-Q4$249 M25.37%$-49.50 M-19.9%420.01%
2018-Q1$261 M4.57%$-30.70 M-11.8%-37.98%
2018-Q2$327 M25.35%$-136.30 M-41.7%343.97%
2018-Q3$449 M37.27%$-23.40 M-5.2%-82.83%
2018-Q4$455 M1.38%$-53.00 M-11.7%126.50%

GTT ownership

When you are planning to buy shares of a company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For GTT Communications, 18.81% of all outstanding shares are owned by its staff.

Bearish positions for GTT stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to GTT:

GTTCMCSACTLIDTSHEN
Market cap$1.5 B$196.1 B$11.2 B$187.8 M$2.2 B
Total shares55.9 M4,530.0 M1,090.0 M24.7 M49.8 M
Float shares28.9 M4,500.0 M976.2 M14.9 M47.0 M
  - Institutional holdings (%)91.1%84.7%75.2%43.4%50.5%
  - Insider holdings (%)18.8%0.7%0.8%22.7%5.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

GTT summary

Tuesday, May 21st, 2019
Open$25.99
Close$27.24
Day range$25.67 - $27.59
Previous close$25.75
Session gain5.79%
Average true range$2.25
50d mov avg$35.96
100d mov avg$31.91
200d mov avg$34.38
Daily pattern
Weekly pattern lb01a

GTT performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare GTT Communications to Comcast, CenturyLink, IDT, Shenandoah Telecommunications, AT&T and Verizon Communications:
Stock3m6m12m
GTTGTT Communication...-15.30%-14.80%-41.61%
CMCSAComcast12.71%17.03%39.38%
CTLCenturyLink-22.32%-41.61%-37.51%
IDT 21.41%-9.52%41.26%
SHENShenandoah Teleco...-9.87%-7.48%46.22%
TAT&T5.71%14.00%6.12%
VZVerizon Communica...5.61%3.59%28.04%

GTT competitors

We selected a few stocks to conform a list of GTT competitors to watch if you are interested in investing in GTT: