Zacks Investment Research Lowers Advanced Energy Industries (AEIS) to Sell
Advanced Energy Industries (NASDAQ:AEIS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.
According to Zacks, “Advanced Energy reported third quarter results wherein both earnings and revenues declined year over year. The company’s top-line growth is currently suffering from near-term delays in semiconductor memory spending by a large number of manufacturers. Management expects this to continue impacting the company’s business growth in the upcoming quarters which is a major negative. Notably, the stock has underperformed the industry it belongs to on a year-to-date basis. However, the company’s solid momentum across its Industrial and Services businesses contributed well to its top-line. Additionally, contributions from the buyout of LumaSense Technologies drove the results further. The company’s strong focus toward power innovation will continue to aid growth. Nevertheless, customer concentration, integration issues and currency headwinds remain concerns. Furher, seasonality in industrial market poses threat.”
Other research analysts have also recently issued reports about the stock. Citigroup lowered their price target on shares of Advanced Energy Industries from $68.00 to $58.00 and set a “neutral” rating for the company in a research report on Tuesday, September 25th. BidaskClub cut shares of Advanced Energy Industries from a “sell” rating to a “strong sell” rating in a research report on Friday, July 27th. Cowen reissued a “buy” rating and set a $76.00 price target on shares of Advanced Energy Industries in a research report on Wednesday, August 1st. TheStreet cut shares of Advanced Energy Industries from a “b-” rating to a “c+” rating in a research report on Tuesday, October 30th. Finally, Stifel Nicolaus lowered their price target on shares of Advanced Energy Industries from $87.00 to $78.00 and set a “hold” rating for the company in a research report on Wednesday, August 1st. Three research analysts have rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $70.17.
Advanced Energy Industries (NASDAQ:AEIS) last issued its quarterly earnings results on Monday, October 29th. The electronics maker reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.05. Advanced Energy Industries had a net margin of 13.18% and a return on equity of 32.09%. The company had revenue of $173.10 million during the quarter, compared to analysts’ expectations of $170.50 million. During the same period last year, the company posted $1.19 EPS. Advanced Energy Industries’s revenue was down 2.0% on a year-over-year basis. As a group, research analysts predict that Advanced Energy Industries will post 4.45 earnings per share for the current year.
In related news, CFO Thomas O. Mcgimpsey sold 8,391 shares of Advanced Energy Industries stock in a transaction dated Thursday, August 16th. The shares were sold at an average price of $59.32, for a total transaction of $497,754.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.20% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the business. Xact Kapitalforvaltning AB increased its stake in Advanced Energy Industries by 16.9% during the 2nd quarter. Xact Kapitalforvaltning AB now owns 6,237 shares of the electronics maker’s stock valued at $362,000 after purchasing an additional 900 shares in the last quarter. Rhumbline Advisers increased its stake in Advanced Energy Industries by 1.0% during the 2nd quarter. Rhumbline Advisers now owns 99,035 shares of the electronics maker’s stock valued at $5,753,000 after purchasing an additional 938 shares in the last quarter. Meadow Creek Investment Management LLC increased its stake in Advanced Energy Industries by 20.5% during the 2nd quarter. Meadow Creek Investment Management LLC now owns 5,600 shares of the electronics maker’s stock valued at $325,000 after purchasing an additional 952 shares in the last quarter. Dana Investment Advisors Inc. increased its stake in Advanced Energy Industries by 2.9% during the 2nd quarter. Dana Investment Advisors Inc. now owns 35,317 shares of the electronics maker’s stock valued at $2,052,000 after purchasing an additional 994 shares in the last quarter. Finally, NumerixS Investment Technologies Inc increased its stake in Advanced Energy Industries by 39.3% during the 2nd quarter. NumerixS Investment Technologies Inc now owns 3,900 shares of the electronics maker’s stock valued at $226,000 after purchasing an additional 1,100 shares in the last quarter. Institutional investors and hedge funds own 96.81% of the company’s stock.
Advanced Energy Industries Company Profile
Advanced Energy Industries, Inc, together with its subsidiaries, designs, manufactures, sells, and supports power conversion and control products that transform electrical power into various usable forms. It offers process power systems, including direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, as well as matching networks and remote plasma sources for reactive gas applications and RF instrumentation.
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