Zacks Investment Research Downgrades SMART Global (NASDAQ:SGH) to Hold

Zacks Investment Research lowered shares of SMART Global (NASDAQ:SGH) from a buy rating to a hold rating in a report issued on Tuesday morning, Zacks.com reports.

According to Zacks, “Smart Global Holdings Inc. is a designer, manufacturer and supplier of electronic subsystems to OEMs. It engaged in the computer, industrial, networking, telecommunications, aerospace and defense markets. The company operates primarily in the U.S., Europe, Asia and Latin America. Smart Global Holdings Inc. is headquartered in Newark, California. “

SGH has been the subject of a number of other reports. Needham & Company LLC raised their price target on SMART Global from $75.00 to $85.00 and gave the stock a buy rating in a research note on Wednesday, October 13th. Barclays raised their price objective on SMART Global from $60.00 to $82.00 and gave the company an overweight rating in a research note on Wednesday, January 5th. Rosenblatt Securities raised their price objective on SMART Global from $75.00 to $100.00 and gave the company a buy rating in a research note on Monday, December 27th. Stifel Nicolaus raised their price objective on SMART Global from $70.00 to $90.00 in a research note on Monday, January 3rd. Finally, TheStreet raised SMART Global from a c rating to a b- rating in a research note on Tuesday, October 12th. One investment analyst has rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, SMART Global has a consensus rating of Buy and an average target price of $85.00.

NASDAQ:SGH opened at $66.25 on Tuesday. The company has a market capitalization of $1.61 billion, a price-to-earnings ratio of 46.08 and a beta of 1.06. SMART Global has a one year low of $36.88 and a one year high of $74.50. The stock has a 50-day simple moving average of $62.08 and a 200 day simple moving average of $53.17. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.17 and a current ratio of 1.76.

Shares of SMART Global are scheduled to split before the market opens on Wednesday, February 2nd. The 2-1 split was announced on Wednesday, February 2nd. The newly issued shares will be payable to shareholders after the market closes on Wednesday, February 2nd.

SMART Global (NASDAQ:SGH) last released its earnings results on Tuesday, January 4th. The company reported $2.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.00 by $0.16. SMART Global had a return on equity of 46.53% and a net margin of 2.34%. The firm had revenue of $469.94 million for the quarter, compared to analyst estimates of $460.06 million. During the same period in the previous year, the company earned $0.34 earnings per share. SMART Global’s revenue was up 61.1% compared to the same quarter last year. On average, equities research analysts forecast that SMART Global will post 5.58 EPS for the current fiscal year.

In related news, Director Ajay Shah sold 43,183 shares of the stock in a transaction dated Tuesday, October 26th. The shares were sold at an average price of $51.03, for a total transaction of $2,203,628.49. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mukesh Patel sold 26,959 shares of the stock in a transaction dated Monday, October 18th. The stock was sold at an average price of $51.34, for a total transaction of $1,384,075.06. The disclosure for this sale can be found here. In the last 90 days, insiders sold 100,849 shares of company stock valued at $5,238,007. Corporate insiders own 2.60% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Global Retirement Partners LLC increased its holdings in SMART Global by 159.0% during the 3rd quarter. Global Retirement Partners LLC now owns 689 shares of the company’s stock worth $31,000 after purchasing an additional 423 shares in the last quarter. O Shaughnessy Asset Management LLC acquired a new stake in SMART Global in the 2nd quarter valued at about $45,000. Point72 Hong Kong Ltd lifted its stake in SMART Global by 618.6% in the 3rd quarter. Point72 Hong Kong Ltd now owns 1,969 shares of the company’s stock valued at $88,000 after purchasing an additional 1,695 shares during the last quarter. Mutual of America Capital Management LLC lifted its stake in SMART Global by 59.0% in the 3rd quarter. Mutual of America Capital Management LLC now owns 3,073 shares of the company’s stock valued at $137,000 after purchasing an additional 1,140 shares during the last quarter. Finally, Amundi acquired a new stake in SMART Global in the 2nd quarter valued at about $170,000.

SMART Global Company Profile

SMART Global Holdings, Inc designs and manufactures specialty solutions for the computing, memory, and LED markets. The company specializes in application specific product development and support for customers in enterprise, government and original equipment manufacturer, or OEM, markets. It operates through the following segments: Memory Solutions, Intelligent Platform Solutions (IPS), and LED Solutions.

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