Zacks Investment Research Downgrades Smart Global (NASDAQ:SGH) to Hold

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Smart Global (NASDAQ:SGH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday, Zacks.com reports.

According to Zacks, “Smart Global Holdings Inc. is a designer, manufacturer and supplier of electronic subsystems to OEMs. It engaged in the computer, industrial, networking, telecommunications, aerospace and defense markets. The company operates primarily in the U.S., Europe, Asia and Latin America. Smart Global Holdings Inc. is headquartered in Newark, California. “

A number of other brokerages have also recently issued reports on SGH. Roth Capital dropped their price objective on Smart Global from $40.00 to $30.00 and set a “buy” rating on the stock in a research note on Friday, March 29th. Barclays upped their price objective on Smart Global from $24.00 to $30.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 10th. TheStreet cut UDR from a “b” rating to a “c” rating in a research note on Tuesday, April 30th. BidaskClub upgraded Xilinx from a “hold” rating to a “buy” rating in a research note on Saturday, June 29th. Finally, ValuEngine upgraded Zillow Group from a “hold” rating to a “buy” rating in a research note on Thursday, July 11th. Two equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The company has an average rating of “Buy” and an average price target of $35.33.

Smart Global stock opened at $31.34 on Tuesday. The firm has a 50-day simple moving average of $21.91. The company has a debt-to-equity ratio of 0.78, a current ratio of 2.24 and a quick ratio of 1.66. Smart Global has a 12-month low of $16.94 and a 12-month high of $35.10. The company has a market capitalization of $724.98 million, a PE ratio of 5.22, a price-to-earnings-growth ratio of 0.72 and a beta of 1.21.

Smart Global (NASDAQ:SGH) last released its quarterly earnings results on Thursday, June 27th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.22 by ($0.03). Smart Global had a net margin of 5.77% and a return on equity of 40.99%. The business had revenue of $235.70 million during the quarter, compared to the consensus estimate of $264.98 million. During the same period in the prior year, the firm earned $1.84 earnings per share. The business’s quarterly revenue was down 29.7% compared to the same quarter last year. Equities analysts predict that Smart Global will post 2.92 EPS for the current fiscal year.

In related news, VP Bruce M. Goldberg sold 2,381 shares of the firm’s stock in a transaction that occurred on Monday, May 20th. The stock was sold at an average price of $18.39, for a total transaction of $43,786.59. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Bruce M. Goldberg sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, April 22nd. The stock was sold at an average price of $22.13, for a total value of $44,260.00. The disclosure for this sale can be found here. Company insiders own 4.20% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SGH. First Trust Advisors LP increased its holdings in shares of Smart Global by 20.3% in the 4th quarter. First Trust Advisors LP now owns 22,411 shares of the company’s stock worth $666,000 after acquiring an additional 3,776 shares during the period. PNC Financial Services Group Inc. raised its holdings in shares of Smart Global by 116.7% in the fourth quarter. PNC Financial Services Group Inc. now owns 2,232 shares of the company’s stock valued at $66,000 after buying an additional 1,202 shares during the last quarter. BlackRock Inc. raised its holdings in shares of Smart Global by 137.4% in the fourth quarter. BlackRock Inc. now owns 1,661,267 shares of the company’s stock valued at $49,339,000 after buying an additional 961,590 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Smart Global by 239.2% in the fourth quarter. Bank of New York Mellon Corp now owns 123,575 shares of the company’s stock valued at $3,671,000 after buying an additional 87,143 shares during the last quarter. Finally, Texas Permanent School Fund bought a new position in shares of Smart Global in the fourth quarter valued at about $242,000. 97.15% of the stock is owned by institutional investors and hedge funds.

Smart Global Company Profile

SMART Global Holdings, Inc designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements.

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