Comtech Telecommunications Corporation (NASDAQ: CMTL) shares moved higher after several insiders purchased $650,000 earlier this week. President and CEO Fred Kornberg 25,000 shares for $22.57 per share, while other buyers included the firm’s CFO, VP of Finance, Corporate controller, VP of Tax and Secretary. The purchases are the first made in the open market in over three years, and all of the insiders still hold less than one percent of the company.

The move comes after Comtech announced weak 2010 earnings guidance and cut its 2009 earnings and revenue forecasts. Given that these insiders have traditionally been heavy sellers, many experts believe that the buying was an encouraging reversal of sentiment, even if they took more out in the past than they put in now. Meanwhile, at least one analyst remains optimistic on the stock – given its low valuation – with a price target of around $32.50 per share.

Comtech designs, develops, produces, and market products, systems, and services for communications solutions. The company has three business segments: telecommunications transmissions, mobile data communications, and radio frequency (RF) microwave amplifiers. The company sells its products to a diverse customer base in the global commercial and government communications markets. Shares of Comtech rose $0.15, or 0.63%, to $23.83 per share in early trading.

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