Mimecast (MIME) Shares Down 7.3% on Disappointing Earnings
Shares of Mimecast Ltd (NASDAQ:MIME) traded down 7.3% on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $47.32 and last traded at $47.45. 1,396,566 shares were traded during mid-day trading, an increase of 122% from the average session volume of 630,283 shares. The stock had previously closed at $51.17.
The technology company reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.02). Mimecast had a negative return on equity of 2.85% and a negative net margin of 2.06%. The firm had revenue of $92.20 million during the quarter, compared to analyst estimates of $91.34 million. During the same quarter in the prior year, the firm earned ($0.05) EPS. The business’s quarterly revenue was up 25.6% compared to the same quarter last year.
A number of equities analysts have commented on the stock. BidaskClub lowered shares of Mimecast from a “strong-buy” rating to a “buy” rating in a report on Tuesday. Monness Crespi & Hardt reiterated a “buy” rating and issued a $52.00 price objective (up previously from $45.00) on shares of Mimecast in a report on Tuesday, February 12th. ValuEngine lowered shares of Mimecast from a “strong-buy” rating to a “buy” rating in a report on Tuesday. Bank of America assumed coverage on shares of Mimecast in a report on Friday, April 12th. They issued a “buy” rating and a $60.00 price objective on the stock. Finally, Imperial Capital reiterated an “outperform” rating and issued a $55.00 price objective (up previously from $52.00) on shares of Mimecast in a report on Tuesday. Three research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company’s stock. Mimecast currently has a consensus rating of “Buy” and an average price target of $52.94.
Institutional investors have recently modified their holdings of the company. Advisor Group Inc. raised its stake in shares of Mimecast by 33.6% in the 1st quarter. Advisor Group Inc. now owns 970 shares of the technology company’s stock valued at $46,000 after purchasing an additional 244 shares in the last quarter. First Mercantile Trust Co. raised its stake in shares of Mimecast by 223.4% in the 1st quarter. First Mercantile Trust Co. now owns 1,035 shares of the technology company’s stock valued at $49,000 after purchasing an additional 715 shares in the last quarter. Marshall Wace LLP acquired a new stake in shares of Mimecast in the 1st quarter valued at about $49,000. Oppenheimer Asset Management Inc. acquired a new stake in shares of Mimecast in the 4th quarter valued at about $72,000. Finally, NumerixS Investment Technologies Inc raised its stake in shares of Mimecast by 19.5% in the 1st quarter. NumerixS Investment Technologies Inc now owns 2,390 shares of the technology company’s stock valued at $114,000 after purchasing an additional 390 shares in the last quarter. Institutional investors and hedge funds own 64.43% of the company’s stock.
The company has a market cap of $2.87 billion, a PE ratio of -669.71, a PEG ratio of 14.83 and a beta of 1.10. The company has a debt-to-equity ratio of 1.20, a quick ratio of 1.29 and a current ratio of 1.29.
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About Mimecast (NASDAQ:MIME)
Mimecast Limited, a email and data security company, provides cloud security and risk management services for corporate information and email. The company offers Mimecast Email Security services, including targeted threat protection services, such as URL Protect that addresses the threat from emails containing malicious links; Attachment Protect that reduces threat from weaponized or malware-laden attachments used in spear-phishing and other attacks; Impersonation Protect that gives protection from malware-less social engineering attacks; and Internal Email Protect, which allows customers to monitor, detect, and remediate security threats that originate from within their internal email systems.
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