Shutterfly, Inc. (NASDAQ:SFLY) Stock Rating Lowered by Zacks Investment Research
Shutterfly, Inc. (NASDAQ:SFLY) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday, July 11th.
According to Zacks, “Shutterfly’s focus on improving operational efficiency through major restructuring bodes well in the long term. Continual product innovations and focus on improving technology-related offerings are to be solid growth drivers. The Shutterfly 3.0 initiative under which it aims to create a platform and device-agnostic memory management and personalized e-commerce solution, bodes well. Notably, it has a mixed record of earnings surprises in the recent quarters and estimates are mostly stable ahead of its Q2 earnings release. Yet, Shutterfly is likely to incur huge restructuring costs in 2017 and revenue growth is expected to be very slow in the year. A rise in manufacturing, labor and training costs could weigh on margins. The company’s revenues are susceptible to travel industry and consumer spending trends, which raises concern. Also, its shares have underperformed the Zacks classified Internet Content industry in the year to date.”
Other research analysts also recently issued reports about the stock. TheStreet upgraded shares of Shutterfly from a “c” rating to a “b” rating in a research report on Monday, April 17th. Aegis restated a “buy” rating and set a $57.00 target price on shares of Shutterfly in a research report on Wednesday, April 26th. Cantor Fitzgerald reiterated a “buy” rating and issued a $57.00 price target on shares of Shutterfly in a research report on Tuesday, May 16th. ValuEngine upgraded shares of Shutterfly from a “sell” rating to a “hold” rating in a research report on Tuesday, June 6th. Finally, Jefferies Group LLC reiterated a “hold” rating and issued a $53.00 price target (up from $46.00) on shares of Shutterfly in a research report on Wednesday, April 26th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Shutterfly currently has an average rating of “Hold” and a consensus target price of $53.89.
Shares of Shutterfly (NASDAQ SFLY) traded down 0.31% during midday trading on Tuesday, reaching $47.58. 366,800 shares of the company were exchanged. The stock’s 50-day moving average price is $47.85 and its 200-day moving average price is $48.59. Shutterfly has a 52-week low of $41.91 and a 52-week high of $53.99. The company has a market capitalization of $1.59 billion, a PE ratio of 290.12 and a beta of 0.85.
Shutterfly (NASDAQ:SFLY) last released its earnings results on Tuesday, July 25th. The technology company reported ($0.68) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.55) by $0.13. Shutterfly had a net margin of 0.50% and a return on equity of 3.61%. The business had revenue of $209.03 million for the quarter, compared to analyst estimates of $209.46 million. During the same quarter in the previous year, the company posted ($0.48) earnings per share. The business’s revenue for the quarter was up 2.5% on a year-over-year basis. Analysts anticipate that Shutterfly will post $0.46 EPS for the current year.
Shutterfly declared that its board has authorized a stock repurchase plan on Tuesday, April 18th that permits the company to repurchase $140.00 million in shares. This repurchase authorization permits the technology company to repurchase up to 8.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.
In related news, Director Ann Mather sold 1,662 shares of the firm’s stock in a transaction on Monday, May 22nd. The shares were sold at an average price of $49.86, for a total value of $82,867.32. Following the completion of the transaction, the director now directly owns 6,799 shares of the company’s stock, valued at $338,998.14. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Betsy Rafael sold 1,060 shares of the firm’s stock in a transaction on Friday, June 23rd. The shares were sold at an average price of $47.76, for a total value of $50,625.60. Following the sale, the director now directly owns 5,046 shares of the company’s stock, valued at approximately $240,996.96. The disclosure for this sale can be found here. Insiders sold 60,290 shares of company stock valued at $2,958,580 over the last three months. 5.70% of the stock is owned by company insiders.
Large investors have recently bought and sold shares of the company. State Street Corp increased its stake in Shutterfly by 0.3% in the fourth quarter. State Street Corp now owns 752,502 shares of the technology company’s stock worth $37,755,000 after buying an additional 2,280 shares in the last quarter. AQR Capital Management LLC purchased a new stake in Shutterfly during the fourth quarter worth $209,000. Norges Bank bought a new position in Shutterfly during the fourth quarter worth approximately $37,582,000. Quadrature Capital Ltd bought a new position in Shutterfly during the fourth quarter worth approximately $660,000. Finally, Teachers Advisors LLC increased its position in Shutterfly by 7.7% in the fourth quarter. Teachers Advisors LLC now owns 317,237 shares of the technology company’s stock worth $15,919,000 after buying an additional 22,761 shares during the period.
Shutterfly, Inc is an online manufacturer and retailer of personalized products and services. The Company focuses on helping consumers manage their memories through the medium of photography. The Company’s segments are Consumer and Shutterfly Business Solutions (SBS). The Consumer segment offers photo-based products, such as photo books, stationery and greeting cards, other photo-based merchandise, photo prints and statement gifts.
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