CalAmp Corp.

CalAmp Corp. (NASDAQ: CAMP) specializes in connected intelligence. Its operating segments are Telematics Products and Software & Subscription Services. The Telematics Products segment offers Asset tracking units, mobile telematics devices, fixed and mobile wireless gateways, and routers are, among the wireless data communications products. The Software & Subscription Services segment provides cloud-based application enablement and telematics service platforms that enable integration of its own and third-party applications via open Application Programming Interfaces (APIs) to deliver full-featured Internet of Things (IoT) solutions to a variety of customers and markets.

Key Highlights

• The company reported YoY decline of 12.40% in total revenue to USD 68.78 million in Q3FY22 (ended November 30, 2021) compared to USD 78.51 million in Q3FY21.
• CAMP net loss reduced to USD 11.44 million in Q3FY22 vs. USD 23.68 million in Q3FY21.
• As of November 30, 2021, the company had cash and cash equivalents of USD 91.11 Million and total debt of USD 190.60 million.
• On March 03, 2022, CAMP announced a partnership with Noregon®, a vehicle data expert, to provide transportation, logistics, and fleet operators with remote vehicle diagnostics and predictive maintenance capabilities.
• Its ROE was -12.4% in Q3FY22, whereas the industry median stood at 3.3%.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is leaning towards the lower end of its 52-week range of USD 4.99 to USD 14.51.

Conclusion: Considering the company’s decline in topline, reduction in net loss, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the current price of USD 7.265, up 0.76%, as of March 28, 2022, at 09:00 AM PDT.

Technical Price Chart (as on March 28, 2022, at 09:00 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Current price as of March 28, 2022, at 09:00 AM PDT

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.