Zacks Investment Research Lowers Equinix (EQIX) to Sell

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Equinix (NASDAQ:EQIX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Shares of Equinix have underperformed the real estate market over the past three months. Further, the trend in estimate revisions for 2019 funds from operations (FFO) per share does not indicate a favorable outlook for the company. While Equinix plans to add more data centers to satisfy the rising demand for co-location and interconnection services, this requires huge capital outlays. Moreover, the company’s growing debt burden is expected to affect its operating results as interest expense would go up. Also, consolidation in the telecommunications industry will likely result in low demand for colocation space, hindering the company’s growth. Nonetheless, a global footprint and solid interconnected ecosystems will enable Equinix to witness top-line growth in the long term.”

Several other research analysts have also issued reports on EQIX. BidaskClub raised shares of Equinix from a “hold” rating to a “buy” rating in a research note on Tuesday, December 18th. ValuEngine lowered shares of Equinix from a “hold” rating to a “sell” rating in a research note on Thursday, November 8th. Citigroup cut their target price on shares of Equinix from $506.00 to $481.00 and set a “buy” rating on the stock in a research note on Friday, November 2nd. cut their target price on shares of Equinix to $460.00 and set a “positive” rating on the stock in a research note on Thursday, November 1st. Finally, BMO Capital Markets cut their target price on shares of Equinix from $521.00 to $511.00 and set a “buy” rating on the stock in a research note on Friday, November 2nd. Two analysts have rated the stock with a sell rating, two have given a hold rating and fifteen have given a buy rating to the company’s stock. Equinix presently has a consensus rating of “Buy” and a consensus price target of $498.13.

NASDAQ EQIX traded up $3.86 on Monday, hitting $399.68. 27,242 shares of the company were exchanged, compared to its average volume of 542,444. The firm has a market cap of $31.82 billion, a PE ratio of 21.55, a P/E/G ratio of 1.37 and a beta of 0.87. Equinix has a 12 month low of $335.29 and a 12 month high of $457.99. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.54.

In related news, insider Yau Tat Lee sold 2,792 shares of the firm’s stock in a transaction dated Thursday, November 15th. The shares were sold at an average price of $382.86, for a total transaction of $1,068,945.12. Following the completion of the sale, the insider now owns 2,182 shares in the company, valued at $835,400.52. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Michael Earl Campbell sold 1,500 shares of the firm’s stock in a transaction dated Tuesday, December 4th. The stock was sold at an average price of $395.00, for a total transaction of $592,500.00. Following the sale, the insider now owns 1,388 shares of the company’s stock, valued at approximately $548,260. The disclosure for this sale can be found here. In the last quarter, insiders sold 14,944 shares of company stock valued at $5,720,241. 0.51% of the stock is currently owned by corporate insiders.

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc lifted its position in Equinix by 0.3% during the third quarter. Vanguard Group Inc now owns 10,175,655 shares of the financial services provider’s stock valued at $4,404,940,000 after purchasing an additional 27,284 shares during the last quarter. BlackRock Inc. boosted its holdings in shares of Equinix by 0.5% during the 4th quarter. BlackRock Inc. now owns 5,952,156 shares of the financial services provider’s stock valued at $2,098,492,000 after buying an additional 26,953 shares in the last quarter. Capital World Investors boosted its holdings in shares of Equinix by 4.8% during the 3rd quarter. Capital World Investors now owns 3,238,956 shares of the financial services provider’s stock valued at $1,402,112,000 after buying an additional 148,000 shares in the last quarter. Edgewood Management LLC boosted its holdings in shares of Equinix by 1.6% during the 3rd quarter. Edgewood Management LLC now owns 2,287,779 shares of the financial services provider’s stock valued at $990,356,000 after buying an additional 35,868 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in shares of Equinix by 10.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,225,145 shares of the financial services provider’s stock valued at $530,354,000 after buying an additional 112,196 shares in the last quarter. Hedge funds and other institutional investors own 95.35% of the company’s stock.

Equinix Company Profile

Equinix, Inc (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 52 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.

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