Cimpress (CMPR) Cut to “Strong Sell” at Zacks Investment Research

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Cimpress (NASDAQ:CMPR) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday.

According to Zacks, “In first-quarter fiscal 2019, Cimpress' earnings and revenues missed the Zacks Consensus Estimate by 261.5% and 3.6%, respectively. In the past three months, the company's shares have underperformed the industry. Also, the company looks relatively more leveraged than the industry. We believe that rising costs of revenues remain a concern for the company's gross margin. Moreover, a weak cash position and headwinds in currency translation might be detrimental. Stiff competition from traditional graphic design and printing companies remains another impediment. Further, increases in debt levels can increase its financial obligations.”

Other equities analysts also recently issued research reports about the stock. ValuEngine upgraded shares of Cimpress from a “hold” rating to a “buy” rating in a research note on Friday, August 3rd. BidaskClub downgraded shares of Cimpress from a “buy” rating to a “hold” rating in a research note on Tuesday, July 31st. Barrington Research set a $165.00 target price on shares of Cimpress and gave the stock a “buy” rating in a research note on Wednesday, September 26th. Finally, SunTrust Banks reiterated a “hold” rating and issued a $155.00 target price on shares of Cimpress in a research note on Thursday, August 2nd. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus target price of $135.25.

NASDAQ CMPR traded down $1.32 during trading hours on Monday, reaching $116.26. 142,500 shares of the company were exchanged, compared to its average volume of 195,464. Cimpress has a 1 year low of $109.00 and a 1 year high of $171.76. The company has a debt-to-equity ratio of 11.31, a quick ratio of 0.39 and a current ratio of 0.55. The company has a market capitalization of $3.63 billion, a PE ratio of 136.78, a price-to-earnings-growth ratio of 1.70 and a beta of 0.04.

Cimpress (NASDAQ:CMPR) last posted its quarterly earnings data on Wednesday, October 31st. The business services provider reported ($0.47) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.25). Cimpress had a return on equity of 19.98% and a net margin of 0.22%. The company had revenue of $588.98 million for the quarter, compared to analysts’ expectations of $615.35 million. During the same quarter last year, the business posted $0.72 EPS. The business’s quarterly revenue was up 4.6% on a year-over-year basis. As a group, analysts forecast that Cimpress will post 3 EPS for the current fiscal year.

In related news, insider Sean Edward Quinn sold 777 shares of the business’s stock in a transaction that occurred on Friday, August 31st. The shares were sold at an average price of $139.40, for a total transaction of $108,313.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director John J. Gavin, Jr. sold 9,548 shares of the business’s stock in a transaction that occurred on Friday, November 2nd. The shares were sold at an average price of $113.61, for a total transaction of $1,084,748.28. Following the transaction, the director now directly owns 9,548 shares of the company’s stock, valued at approximately $1,084,748.28. The disclosure for this sale can be found here. 18.40% of the stock is owned by company insiders.

Large investors have recently modified their holdings of the stock. First Republic Investment Management Inc. grew its stake in Cimpress by 20.6% during the second quarter. First Republic Investment Management Inc. now owns 3,409 shares of the business services provider’s stock valued at $494,000 after acquiring an additional 582 shares in the last quarter. SG Americas Securities LLC grew its stake in Cimpress by 113.4% during the second quarter. SG Americas Securities LLC now owns 5,962 shares of the business services provider’s stock valued at $864,000 after acquiring an additional 3,168 shares in the last quarter. UBS Group AG grew its stake in Cimpress by 102.9% during the first quarter. UBS Group AG now owns 2,719 shares of the business services provider’s stock valued at $421,000 after acquiring an additional 95,255 shares in the last quarter. Schwab Charles Investment Management Inc. grew its stake in Cimpress by 12.0% during the second quarter. Schwab Charles Investment Management Inc. now owns 83,107 shares of the business services provider’s stock valued at $12,048,000 after acquiring an additional 8,899 shares in the last quarter. Finally, Bank of Montreal Can grew its stake in Cimpress by 863.2% during the second quarter. Bank of Montreal Can now owns 10,508 shares of the business services provider’s stock valued at $1,523,000 after acquiring an additional 9,417 shares in the last quarter. 87.71% of the stock is owned by institutional investors.

About Cimpress

Cimpress N.V. provides various mass customization services in the United States, Germany, and internationally. The company delivers various volumes of individually small-sized customized orders for a range of print, signage, photo merchandise, invitation and announcement, packaging, apparel, and other categories primarily through the Internet.

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