Shutterfly, Inc. (SFLY) Downgraded by Zacks Investment Research to “Sell”
Zacks Investment Research cut shares of Shutterfly, Inc. (NASDAQ:SFLY) from a hold rating to a sell rating in a report published on Tuesday morning.
According to Zacks, “Shutterfly shares have underperformed its industry in the past year. Though the company has a mostly positive record of earnings surprises in recent quarters, estimates have moved slightly down ahead of its third-quarter release. Notably, Shutterfly is expected to incur huge restructuring costs in 2017 and revenue growth is expected to be very slow throughout the year. Though restructuring bodes well for the company in the long run, 2017 is set to be a transition year for them, with different brands transitioning over the first three quarters. Further adding to concerns is that Shutterfly’s business is highly seasonal and is susceptible to travel industry and consumer spending trends. Nevertheless, product innovations and improving technology-related offerings are expected to drive growth. The Shutterfly 3.0 initiative bodes well too. However, a rise in manufacturing, labor and training costs is likely to weigh on margins.”
Other equities analysts have also recently issued research reports about the stock. SunTrust Banks, Inc. started coverage on shares of Shutterfly in a research note on Tuesday, August 15th. They issued a buy rating and a $56.00 price objective for the company. TheStreet cut shares of Shutterfly from a b- rating to a c+ rating in a research note on Tuesday, June 13th. Jefferies Group LLC restated a hold rating and issued a $53.00 price objective on shares of Shutterfly in a research note on Friday, August 4th. ValuEngine upgraded shares of Shutterfly from a sell rating to a hold rating in a research note on Friday, September 22nd. Finally, BidaskClub upgraded shares of Shutterfly from a strong sell rating to a sell rating in a research note on Tuesday, July 25th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and five have issued a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $54.10.
Shutterfly (NASDAQ:SFLY) traded down 0.58% on Tuesday, hitting $48.38. 17,531 shares of the stock traded hands. The stock has a 50-day moving average of $47.25 and a 200-day moving average of $48.41. The firm has a market cap of $1.61 billion, a price-to-earnings ratio of 295.00 and a beta of 0.90. Shutterfly has a 12-month low of $41.91 and a 12-month high of $53.99.
Shutterfly (NASDAQ:SFLY) last announced its quarterly earnings data 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 during the quarter, compared to analyst estimates of $209.46 million. During the same quarter in the prior year, the company posted ($0.48) EPS. The company’s quarterly revenue was up 2.5% compared to the same quarter last year. Analysts forecast that Shutterfly will post $0.41 earnings per share for the current year.
In related news, VP Jason Sebring sold 644 shares of the stock in a transaction dated Monday, September 18th. The shares were sold at an average price of $48.30, for a total transaction of $31,105.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Lisa Blackwood-Kapral sold 1,250 shares of the stock in a transaction dated Thursday, August 17th. The stock was sold at an average price of $46.56, for a total transaction of $58,200.00. Following the sale, the insider now owns 1,250 shares of the company’s stock, valued at approximately $58,200. The disclosure for this sale can be found here. Company insiders own 5.70% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Riverhead Capital Management LLC increased its position in shares of Shutterfly by 62.1% during the 2nd quarter. Riverhead Capital Management LLC now owns 2,431 shares of the technology company’s stock worth $116,000 after purchasing an additional 931 shares in the last quarter. Quantbot Technologies LP acquired a new stake in shares of Shutterfly during the 2nd quarter worth about $119,000. LS Investment Advisors LLC increased its position in shares of Shutterfly by 132.9% during the 2nd quarter. LS Investment Advisors LLC now owns 2,888 shares of the technology company’s stock worth $137,000 after purchasing an additional 1,648 shares in the last quarter. Ameritas Investment Partners Inc. acquired a new stake in shares of Shutterfly during the 1st quarter worth about $144,000. Finally, Pinebridge Investments L.P. increased its position in shares of Shutterfly by 1.4% during the 2nd quarter. Pinebridge Investments L.P. now owns 4,450 shares of the technology company’s stock worth $211,000 after purchasing an additional 60 shares in the last quarter.
Shutterfly Company Profile
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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