iRobot (IRBT) Cut to “Hold” at Zacks Investment Research
According to Zacks, “Over the past three months, iRobot's shares have outperformed the industry. It believes that strong demand for innovative home-robotic products (like Roomba e5 and of i7/i7+ Roomba) and strategic marketing programs will drive its revenues in the upcoming quarters. Notably, the company anticipates generating revenues in the range of $1.28-$1.31 billion (estimating a year-over-year growth rate of 17-20%) in 2019. Moreover, greater operational efficiency and reduced corporate tax rates will likely boost its near-term profitability. However, the stock looks overvalued compared to its industry over the past three months. In addition, the company expects to incur $20 million to $25 million of tariff costs in 2019. Further, excessive business rivalry in the U.S. robotic vacuum cleaning market might hurt its revenues in the upcoming quarters.”
Several other research firms also recently issued reports on IRBT. Needham & Company LLC downgraded shares of iRobot from a “buy” rating to a “hold” rating and set a $126.87 price objective for the company. in a research note on Tuesday, March 19th. They noted that the move was a valuation call. Northland Securities restated a “buy” rating and issued a $130.00 price objective on shares of iRobot in a research note on Tuesday. Sidoti downgraded shares of iRobot from a “buy” rating to a “neutral” rating and set a $118.00 price objective for the company. in a research note on Thursday, February 21st. They noted that the move was a valuation call. Canaccord Genuity downgraded shares of iRobot from a “buy” rating to a “hold” rating and decreased their price objective for the company from $115.00 to $114.00 in a research note on Tuesday, February 19th. They noted that the move was a valuation call. Finally, BidaskClub upgraded shares of iRobot from a “buy” rating to a “strong-buy” rating in a research note on Thursday, February 14th. Eight analysts have rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. iRobot has a consensus rating of “Hold” and a consensus price target of $105.70.
iRobot (NASDAQ:IRBT) last released its quarterly earnings data on Wednesday, February 6th. The industrial products company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.33. iRobot had a net margin of 8.05% and a return on equity of 17.14%. The company had revenue of $384.67 million during the quarter, compared to the consensus estimate of $381.87 million. During the same quarter in the prior year, the firm posted $0.16 earnings per share. iRobot’s revenue for the quarter was up 17.6% on a year-over-year basis. As a group, sell-side analysts anticipate that iRobot will post 3.1 earnings per share for the current year.
In other iRobot news, EVP Russell J. Campanello sold 17,409 shares of the stock in a transaction dated Thursday, April 4th. The shares were sold at an average price of $120.93, for a total value of $2,105,270.37. Following the completion of the transaction, the executive vice president now directly owns 44,601 shares of the company’s stock, valued at $5,393,598.93. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Russell J. Campanello sold 7,993 shares of the stock in a transaction dated Thursday, February 7th. The shares were sold at an average price of $101.00, for a total transaction of $807,293.00. Following the completion of the transaction, the executive vice president now directly owns 35,750 shares of the company’s stock, valued at $3,610,750. The disclosure for this sale can be found here. Insiders have sold 99,890 shares of company stock valued at $12,127,939 over the last three months. 3.51% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the business. Wells Fargo & Company MN grew its position in shares of iRobot by 182.5% during the 3rd quarter. Wells Fargo & Company MN now owns 76,502 shares of the industrial products company’s stock valued at $8,409,000 after acquiring an additional 49,426 shares during the period. Alliancebernstein L.P. boosted its holdings in iRobot by 3.3% in the 3rd quarter. Alliancebernstein L.P. now owns 43,209 shares of the industrial products company’s stock worth $4,750,000 after buying an additional 1,392 shares during the last quarter. Janus Henderson Group PLC acquired a new stake in iRobot in the 3rd quarter worth about $371,000. Bank of New York Mellon Corp boosted its holdings in iRobot by 4.1% in the 3rd quarter. Bank of New York Mellon Corp now owns 421,659 shares of the industrial products company’s stock worth $46,348,000 after buying an additional 16,767 shares during the last quarter. Finally, Hsbc Holdings PLC acquired a new stake in iRobot in the 3rd quarter worth about $1,538,000. 97.16% of the stock is owned by institutional investors.
iRobot Company Profile
iRobot Corporation designs, builds, and sells robots for the consumer market worldwide. It offers Roomba floor vacuuming robots; Braava family of automatic floor mopping robots; and Mirra Pool Cleaning Robot to clean residential pools and removes debris as small as two microns from pool floors, walls, and stairs.
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