Zacks Investment Research downgraded shares of Mellanox Technologies (NASDAQ:MLNX) from a hold rating to a sell rating in a report issued on Thursday morning, Zacks.com reports. Zacks Investment Research currently has $125.00 target price on the semiconductor producer’s stock.
According to Zacks, “Mellanox is benefiting from robust demand for Ethernet adapters, switches and LinkX cables. Solid demand of its Gigabit EDR solutions in AI, HPC, ML, database, and storage bode well. Further, strong adoption of Mellanox’s InfiniBand solutions is a key catalyst. The company has also won several contracts from the likes of NetApp and NASA Ames Research Center, which reflects sturdy demand for its solutions. Notably, NVIDIA inked a definitive agreement to acquire Mellanox for a total enterprise value of around $6.9 billion. The buyout is slated to close by the end of calendar 2019. However, exposure to foreign currency and significant customer concentration remain headwinds. Notably, shares of Mellanox have underperformed the industry in the past year.”
Several other equities research analysts have also recently commented on the company. BidaskClub upgraded Mellanox Technologies from a strong sell rating to a sell rating in a research note on Wednesday, November 27th. ValuEngine lowered shares of Mellanox Technologies from a hold rating to a sell rating in a research report on Wednesday, August 28th. Three analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company’s stock. The company has an average rating of Hold and an average target price of $124.19.
Shares of MLNX stock opened at $114.62 on Thursday. The stock’s 50-day moving average price is $113.45 and its 200 day moving average price is $111.22. The stock has a market capitalization of $6.35 billion, a PE ratio of 29.77, a price-to-earnings-growth ratio of 1.05 and a beta of 0.50. Mellanox Technologies has a 52-week low of $78.86 and a 52-week high of $121.13.
Mellanox Technologies (NASDAQ:MLNX) last posted its quarterly earnings data on Wednesday, October 30th. The semiconductor producer reported $1.69 earnings per share for the quarter, topping analysts’ consensus estimates of $1.58 by $0.11. Mellanox Technologies had a return on equity of 18.84% and a net margin of 14.03%. The company had revenue of $335.30 million during the quarter, compared to analysts’ expectations of $315.59 million. During the same period last year, the firm earned $1.33 EPS. The firm’s revenue for the quarter was up 20.1% on a year-over-year basis. As a group, equities research analysts predict that Mellanox Technologies will post 5.06 earnings per share for the current year.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Steward Partners Investment Advisory LLC purchased a new position in Mellanox Technologies in the second quarter worth $49,000. Oakworth Capital Inc. acquired a new stake in Mellanox Technologies in the second quarter valued at $58,000. Tyers Asset Management LLC purchased a new stake in shares of Mellanox Technologies during the 2nd quarter worth $73,000. Aperio Group LLC purchased a new stake in shares of Mellanox Technologies during the 2nd quarter worth $91,000. Finally, Elkfork Partners LLC purchased a new stake in shares of Mellanox Technologies during the 2nd quarter worth $100,000. 76.03% of the stock is owned by hedge funds and other institutional investors.
About Mellanox Technologies
Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, markets, and sells interconnect products and solutions. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. The company offers InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; and Ethernet solutions, such as Ethernet switch products and Ethernet adapters for use in enterprise data center, high-performance computing, embedded environments, hyperscale, Web 2.0, and cloud data centers.
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