Jefferies Group Downgrades Mellanox Technologies Ltd. (MLNX) to Underperform
Mellanox Technologies Ltd. (NASDAQ:MLNX) was downgraded by stock analysts at Jefferies Group from a “hold” rating to an “underperform” rating in a research report issued to clients and investors on Monday. They presently have a $37.00 target price on the stock, down from their prior target price of $42.00. Jefferies Group’s target price would indicate a potential downside of 12.94% from the stock’s current price.
Several other equities research analysts have also commented on the stock. Roth Capital set a $60.00 price objective on shares of Mellanox Technologies and gave the stock a “buy” rating in a research report on Sunday, October 30th. Zacks Investment Research lowered shares of Mellanox Technologies from a “hold” rating to a “sell” rating in a research report on Wednesday, October 26th. TheStreet lowered shares of Mellanox Technologies from a “buy” rating to a “hold” rating in a research report on Monday, August 15th. Pacific Crest began coverage on shares of Mellanox Technologies in a research report on Thursday, July 28th. They issued a “sector weight” rating on the stock. Finally, Brean Capital reiterated a “buy” rating and issued a $60.00 price objective (up from $55.00) on shares of Mellanox Technologies in a research report on Sunday, July 24th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $61.42.
Shares of Mellanox Technologies (NASDAQ:MLNX) opened at 42.50 on Monday. The firm has a market capitalization of $2.07 billion, a PE ratio of 39.98 and a beta of 0.62. Mellanox Technologies has a 12 month low of $37.54 and a 12 month high of $55.80. The firm’s 50 day moving average is $43.32 and its 200-day moving average is $44.55.
Mellanox Technologies (NASDAQ:MLNX) last posted its quarterly earnings results on Thursday, October 27th. The company reported $0.93 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.33. Mellanox Technologies had a net margin of 6.49% and a return on equity of 10.89%. The business had revenue of $224.20 million for the quarter, compared to analysts’ expectations of $25.16 million. During the same period in the prior year, the company posted $0.75 EPS. The business’s revenue for the quarter was up 30.8% on a year-over-year basis. On average, analysts expect that Mellanox Technologies will post $3.47 EPS for the current fiscal year.
In related news, Director Amal M. Johnson sold 3,571 shares of the stock in a transaction that occurred on Tuesday, September 27th. The shares were sold at an average price of $41.97, for a total transaction of $149,874.87. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Yakov (Jacob) Shulman sold 2,782 shares of the stock in a transaction that occurred on Tuesday, November 1st. The stock was sold at an average price of $43.28, for a total transaction of $120,404.96. The disclosure for this sale can be found here. Corporate insiders own 6.32% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Cornerstone Financial Partners LLC purchased a new stake in shares of Mellanox Technologies during the second quarter valued at about $575,000. State of New Jersey Common Pension Fund D purchased a new stake in shares of Mellanox Technologies during the second quarter valued at about $2,878,000. Columbus Circle Investors purchased a new stake in shares of Mellanox Technologies during the second quarter valued at about $1,082,000. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Mellanox Technologies by 1,035.2% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 10,966 shares of the company’s stock valued at $526,000 after buying an additional 10,000 shares during the period. Finally, Quantitative Systematic Strategies LLC purchased a new stake in shares of Mellanox Technologies during the second quarter valued at about $265,000. 61.84% of the stock is owned by hedge funds and other institutional investors.
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About Mellanox Technologies
Mellanox Technologies, Ltd. is a fabless semiconductor company. The Company designs, manufactures and sells interconnect products and solutions primarily based on the InfiniBand and Ethernet standards. The Company operates in the development, manufacturing, marketing and sales of interconnect products segment.
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