Should I Buy CMTL? CMTL 2026 Analysis

Should You Buy Comtech Telecommunications Corp (CMTL) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

5.500

1 Day change

-4.68%

52 Week Range

6.160

Analysis Updated At

2026/01/28

Not a good buy right now for a beginner long-term investor with $50k–$100k. While the chart is improving (bullish moving-average stack) and options positioning is call-leaning, the latest quarter shows worsening losses and declining revenue, and there are no fresh news catalysts or strong proprietary buy signals to justify an impatient long-term entry today. I would wait rather than buy now.

Technical Analysis

Trend/price action: Mild uptrend bias with bullish moving averages (SMA_5 > SMA_20 > SMA_200), suggesting improving medium/longer-term trend structure. Momentum: MACD histogram is negative (-0.0631) but contracting, implying bearish momentum is fading and a potential turn could develop, though it is not confirmed yet. RSI(6)=62.98 (neutral-to-slightly-strong), not overbought. Levels: Pivot 5.75 is the near-term line to hold; support S1 5.46 (then S2 5.28). Resistance sits close at R1 6.04 and R2 6.22; at 5.95 the stock is near first resistance, so upside may be limited without a catalyst. Pattern-based odds provided: ~60% chance of modest gains (+1.24% next day, +5.21% next week, +3.78% next month). Intellectia Proprietary Trading Signals: No signal on given stock today. (- [AI Stock Picker](module://ai_stock_pick): no signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock recently.)

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options sentiment is skewed bullish based on positioning: open interest shows more calls than puts (call OI 4,760 vs put OI 2,076; put/call OI ratio 0.44). However, today’s volume is extremely thin (only 2 calls and 0 puts), so the put/call volume ratio of 0.0 is not very informative. Volatility: implied vol (30d) is very elevated (152.33) versus historical vol (72.01), with IV percentile 66—options are pricing large moves, which often reflects uncertainty/speculation more than confidence.

Technical Summary

Sell

Buy

Positive Catalysts

Technical structure is constructive (bullish MA stack) and MACD downside momentum is weakening.
Options open-interest positioning leans bullish (low put/call OI ratio).
Gross margin improved sharply YoY in the latest quarter (could hint at mix/efficiency improvements if sustained).

Neutral/Negative Catalysts

Latest quarter (2026/Q
shows weakening fundamentals: revenue down -4.12% YoY and losses deepened materially (net income -$19.78M; EPS -0.67, both down ~-87% YoY).
No news in the past week—no clear event-driven catalyst to push through near resistance (~6.04–6.22).
Very high implied volatility vs historical volatility suggests the market expects large swings/uncertainty, which is not ideal for a beginner long-term allocation.
Hedge funds and insiders are neutral—no supportive accumulation signal from these cohorts.

Financial Performance

Latest quarter: 2026/Q1. Revenue fell to $111.03M (-4.12% YoY). Profitability deteriorated significantly: net income declined to -$19.78M (down -87.31% YoY) and EPS to -0.67 (down -87.33% YoY). Gross margin improved to 28.57% (+317.69% YoY), but the company is still generating sizable losses; the key growth trend is negative on sales and earnings, which weakens the long-term buy case today.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating/price target trend data was provided, so a recent Wall Street upgrades/downgrades or target-change read cannot be confirmed here. With the available data, the main pro argument would be improving technicals and margin improvement; the main con would be falling revenue and sharply worse earnings, which typically keeps professional sentiment cautious.

Analyst Rating

Wall Street analysts forecast CMTL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMTL is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

Buy

Hold

Sell

Current: 5.770

Low

Averages

High

Current: 5.770

Low

Averages

High

B. Riley

Buy

downgrade

$7 -> $6

AI Analysis

2025-06-10

Reason

B. Riley

Price Target

$7 -> $6

AI Analysis

2025-06-10

downgrade

Buy

Reason

B. Riley lowered the firm's price target on Comtech to $6 from $7 and keeps a Buy rating on the shares. Comtech's Q3 results featured revenue and EBITDA that were well ahead of the firm's estimates, but bookings were "light," the analyst tells investors in a research note. Though the company had "nothing to share" on the strategic alternatives process, B. Riley continues to believe asset sales remain the best and fastest way for Comtech to relieve balance sheet obligations and remove going-concern fears.

CMTL Should I Buy

CMTL Should I Buy

Should You Buy Comtech Telecommunications Corp (CMTL) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch