10 Hot Penny Stocks On the Move

4. CommScope Holding Company, Inc. (NASDAQ:COMM)

Share Price as of August 30: $4.22

Current Volume as of August 30: 2.5 million

Number of Hedge Fund Holders: 28

1-Month Performance as of August 30: 82.68%

CommScope Holding Company, Inc. (NASDAQ:COMM) is a technology company that provides the infrastructure and equipment needed to build and maintain communication networks, data centers, and entertainment systems.

The company operates through three main business segments including Connectivity and Cable Solutions (CCS), Networking, Intelligent Cellular and Security Solutions, and Access Network Solutions. It was held by 28 hedge funds in Q2 2024, with total stakes worth $65.19 million. FPR Partners is the top shareholder of the company, with a position worth $23.89 million.

The CCS segment of CommScope Holding Company, Inc. (NASDAQ:COMM) was a success and drove the overall performance of the company. The segment net sales were up 5% year-over-year to $728 million due to continued improvement in order rates and a strong performance in data center revenue. As a result of strong growth the adjusted EBITDA skyrocketed to $171 million posting a 107% increase year-over-year.

Management has been constantly evaluating to achieve cost efficiency and has decided to divest its Outdoor Wireless Networks (OWN) and Distributed Antenna Systems (DAS) businesses for $2.1 billion. The diversification will allow the company to effectively manage its cost structure and improve profitability.

CommScope Holding Company, Inc. (NASDAQ:COMM) remains focused on its profitable business segments. It announced acquiring Casa Systems during the second quarter for $45 million adding to the product and service portfolio of the company.

The company was able to bring its adjusted free cash flow of $69 million to positive figures when compared to the last quarter. Moreover, it has more than $543 million in cash and cash equivalents.