Drexel Hamilton Reiterates “Buy” Rating for F5 Networks Inc. (FFIV)
F5 Networks Inc. (NASDAQ:FFIV)‘s stock had its “buy” rating reissued by analysts at Drexel Hamilton in a note issued to investors on Friday. They presently have a $160.00 price objective on the network technology company’s stock. Drexel Hamilton’s target price would suggest a potential upside of 11.29% from the stock’s current price.
The analysts wrote, “We believe F5 represents an undervalued software play with a focus on the rising prominence of applications. With the ramp of a new product cycle and product revenue growth on the cusp of turning positive, we believe FFIV is an attractive GARP play at just 14x our CY:17 EPS estimate (ex-cash). Yesterday’s meeting further strengthened our stance that F5 is really a software company but with a hardware valuation. For example, F5 enjoys software economics with the second-highest operating margin (39% in 4Q:FY16) in our coverage universe. The company’s operating margin is only slightly below Oracle (39.5% in 1Q:FY17), a global software behemoth with FY:16 sales of over $37 billion.””
Several other research analysts have also recently commented on the company. Wunderlich boosted their price target on F5 Networks from $110.00 to $130.00 and gave the stock a “hold” rating in a research note on Thursday, October 27th. Piper Jaffray Cos. upgraded F5 Networks from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $125.00 to $141.00 in a research note on Thursday, October 27th. DA Davidson boosted their price target on F5 Networks from $125.34 to $145.00 and gave the stock a “buy” rating in a research note on Friday, August 12th. Credit Suisse Group AG cut F5 Networks from an “outperform” rating to a “neutral” rating and set a $125.00 price target on the stock. in a research note on Thursday, July 21st. Finally, Oppenheimer Holdings Inc. upgraded F5 Networks from a “market perform” rating to an “outperform” rating and set a $140.00 price target on the stock in a research note on Wednesday, September 14th. One analyst has rated the stock with a sell rating, twenty have issued a hold rating and sixteen have issued a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $121.32.
F5 Networks (NASDAQ:FFIV) opened at 143.77 on Friday. F5 Networks has a 52 week low of $86.03 and a 52 week high of $144.28. The stock has a market capitalization of $9.39 billion, a P/E ratio of 26.72 and a beta of 1.38. The firm has a 50 day moving average price of $129.63 and a 200 day moving average price of $120.82.
F5 Networks (NASDAQ:FFIV) last issued its quarterly earnings data on Wednesday, October 26th. The network technology company reported $2.11 EPS for the quarter, topping the Zacks’ consensus estimate of $1.94 by $0.17. The company had revenue of $525.30 million for the quarter, compared to analysts’ expectations of $520.45 million. F5 Networks had a return on equity of 31.79% and a net margin of 18.34%. The firm’s quarterly revenue was up 4.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.84 earnings per share. Equities research analysts predict that F5 Networks will post $8.30 earnings per share for the current year.
In other news, CFO Andrew Reinland sold 2,737 shares of the firm’s stock in a transaction dated Tuesday, November 1st. The stock was sold at an average price of $136.98, for a total value of $374,914.26. Following the sale, the chief financial officer now directly owns 17,774 shares of the company’s stock, valued at $2,434,682.52. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Alan Higginson sold 3,000 shares of the firm’s stock in a transaction dated Tuesday, November 8th. The shares were sold at an average price of $137.49, for a total value of $412,470.00. Following the completion of the sale, the director now directly owns 13,310 shares in the company, valued at $1,829,991.90. The disclosure for this sale can be found here. 0.28% of the stock is owned by insiders.
Large investors have recently modified their holdings of the stock. New York Life Trust Co. increased its stake in shares of F5 Networks by 83.3% in the third quarter. New York Life Trust Co. now owns 814 shares of the network technology company’s stock valued at $101,000 after buying an additional 370 shares in the last quarter. Global X Management Co. LLC increased its stake in shares of F5 Networks by 79.3% in the third quarter. Global X Management Co. LLC now owns 968 shares of the network technology company’s stock valued at $121,000 after buying an additional 428 shares in the last quarter. IFP Advisors Inc increased its stake in shares of F5 Networks by 13.7% in the second quarter. IFP Advisors Inc now owns 1,078 shares of the network technology company’s stock valued at $123,000 after buying an additional 130 shares in the last quarter. Acrospire Investment Management LLC increased its stake in shares of F5 Networks by 42.9% in the third quarter. Acrospire Investment Management LLC now owns 1,000 shares of the network technology company’s stock valued at $125,000 after buying an additional 300 shares in the last quarter. Finally, Orinda Asset Management LLC acquired a new stake in shares of F5 Networks during the third quarter valued at about $130,000. 93.89% of the stock is currently owned by institutional investors.
F5 Networks Company Profile
F5 Networks, Inc is the developer and provider of application delivery services. The Company’s core technology is a full-proxy, programmable, software platform called TMOS (Traffic Management Operating System). It helps organizations seamlessly scale cloud, data center, and software-defined networking deployments to successfully deliver applications to anyone, anywhere, at any time.
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