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Close Spirent Communications (SPT)

Close Spirent Communications (SPT) at 184.6p

Spirent have spooked the market by issuing its second gloomy outlook statement in as many months.

In its Full Year results, published this morning, Spirent CEO, Eric Updyke said:

“Since the fourth quarter of 2022 we have seen delays to some of our customers’ decision making” and he indicated that he expects a “more challenging first half of 2023”.

Whilst we like the long-term, 5G rollout story behind this stock, this morning’s price action is a red flag. The stock has gapped below a key level of long-term support and it looks likely that Spirent have further to fall.

With this in mind, we are going to take some short-term pain and head for the exit.

Loss = -31%

SPT Daily Candle Chart