Zacks Investment Research Lowers BOX (BOX) to Hold

Zacks Investment Research lowered shares of BOX (NYSE:BOX) from a strong-buy rating to a hold rating in a research note issued to investors on Tuesday.

According to Zacks, “Box continues to reap benefit from its strength across international markets. The company is witnessing increasing adoption of its cloud management platform by its existing clients. Hence, high retention rate will continue to boost its top-line. Moreover, Box’s strong focus on enriching its cloud content management and AI platforms will drive growth in fiscal 2019. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has a positive record of earnings surprises in recent quarters. Notably, the stock has outperformed the industry it belongs to over a year. However, the company has been incurring losses since its inception and does not expect profits in the foreseeable future. Also, sluggish growth in paid customers remains a concern.”

A number of other research analysts also recently commented on the stock. Vetr raised shares of BOX from a hold rating to a strong-buy rating and set a $26.97 price objective for the company in a research report on Tuesday, February 27th. Monness Crespi & Hardt started coverage on shares of BOX in a research report on Wednesday, April 11th. They issued a neutral rating for the company. ValuEngine raised shares of BOX from a hold rating to a buy rating in a research report on Monday, April 2nd. Canaccord Genuity reissued a buy rating on shares of BOX in a research report on Monday, March 5th. Finally, DA Davidson started coverage on shares of BOX in a research report on Thursday, February 15th. They issued a buy rating and a $25.00 price objective for the company. Four equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and two have assigned a strong buy rating to the company’s stock. BOX currently has an average rating of Buy and a consensus price target of $24.50.

BOX stock opened at $27.68 on Tuesday. The firm has a market capitalization of $3.80 billion, a P/E ratio of -23.86 and a beta of 1.12. BOX has a 1-year low of $27.44 and a 1-year high of $27.89. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 4.48.

BOX (NYSE:BOX) last released its earnings results on Wednesday, February 28th. The software maker reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.02. The business had revenue of $136.70 million during the quarter, compared to the consensus estimate of $136.61 million. BOX had a negative net margin of 30.62% and a negative return on equity of 433.21%. The firm’s revenue for the quarter was up 24.4% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.10) earnings per share. research analysts anticipate that BOX will post -1.01 earnings per share for the current year.

In other news, insider Peter M. Mcgoff sold 60,000 shares of the firm’s stock in a transaction dated Thursday, March 15th. The shares were sold at an average price of $20.81, for a total transaction of $1,248,600.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Daniel J. Levin sold 80,000 shares of the firm’s stock in a transaction dated Tuesday, May 15th. The stock was sold at an average price of $27.36, for a total transaction of $2,188,800.00. Following the sale, the director now owns 5,790 shares of the company’s stock, valued at approximately $158,414.40. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 352,079 shares of company stock valued at $7,859,329. 8.51% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Baltimore Washington Financial Advisors Inc. grew its holdings in shares of BOX by 1.7% during the 4th quarter. Baltimore Washington Financial Advisors Inc. now owns 189,635 shares of the software maker’s stock valued at $4,005,000 after purchasing an additional 3,250 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its position in BOX by 15.6% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 490,986 shares of the software maker’s stock worth $10,370,000 after purchasing an additional 66,316 shares during the period. Fox Run Management L.L.C. bought a new position in BOX during the fourth quarter worth about $982,000. Frontier Capital Management Co. LLC boosted its position in BOX by 96.2% during the fourth quarter. Frontier Capital Management Co. LLC now owns 846,607 shares of the software maker’s stock worth $17,880,000 after purchasing an additional 415,074 shares during the period. Finally, Washington Capital Management Inc. bought a new position in BOX during the fourth quarter worth about $364,000. Institutional investors own 77.45% of the company’s stock.

BOX Company Profile

Box, Inc provides cloud content management platform that enables organizations of various sizes to manage and share their enterprise content from anywhere or any device. The company's Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features.

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