Facebook Lowered to Neutral at Zacks (FB)
Facebook (NASDAQ:FB) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research report issued on Friday, Stock Ratings Network reports. They currently have a $65.00 target price on the stock. Zacks‘ price target indicates a potential upside of 4.57% from the stock’s previous close.
Zacks‘ analyst wrote, “Facebook reported solid fourth-quarter results, based on strong mobile advertising revenue growth. The company has gained significant traction in its mobile ad business within a short span of time. This, combined with the massive user base and its ability to track personal details over time, makes it a formidable force in the online ad market. We believe Instagram’s growing popularity and the new initiatives such as Internet.org will continue to boost Facebook’s user base, going forward. We expect the company’s international revenue per user to increase at a faster rate, going forward. However, intensifying competition from the likes of Whatsapp, Snapchat, Tumblr and Pinterest is a major concern. Moreover, the teenage fatigue issue will remain a headwind over the long term. Thus, we downgrade our recommendation from Outperform to Neutral and set a price target of $65.00.”
A number of other analysts have also recently weighed in on FB. Analysts at Argus raised their price target on shares of Facebook from $63.00 to $73.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Separately, analysts at UBS AG raised their price target on shares of Facebook from $62.00 to $72.00 in a research note to investors on Thursday, January 30th. They now have a “buy” rating on the stock. Finally, analysts at Cantor Fitzgerald raised their price target on shares of Facebook to $67.00 in a research note to investors on Thursday, January 30th. Seven equities research analysts have rated the stock with a hold rating and thirty-two have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $68.32.
Facebook (NASDAQ:FB) traded up 2.99% during mid-day trading on Friday, hitting $64.02. The stock had a trading volume of 50,206,524 shares. Facebook has a one year low of $22.67 and a one year high of $63.77. The stock has a 50-day moving average of $57.31 and a 200-day moving average of $48.0. The company has a market cap of $163.2 billion and a P/E ratio of 101.73. Facebook also was the target of a large growth in short interest in January. As of January 15th, there was short interest totalling 43,981,885 shares, a growth of 5.2% from the December 31st total of 41,708,837 shares. Based on an average daily volume of 55,168,075 shares, the days-to-cover ratio is currently 0.8 days. Approximately 2.4% of the company’s stock are sold short.
Facebook (NASDAQ:FB) last issued its quarterly earnings data on Wednesday, January 29th. The company reported $0.31 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.27 by $0.04. The company had revenue of $2.59 billion for the quarter, compared to the consensus estimate of $2.35 billion. During the same quarter last year, the company posted $0.17 earnings per share. Facebook’s revenue was up 63.1% compared to the same quarter last year. Analysts expect that Facebook will post $1.25 EPS for the current fiscal year.
In other Facebook news, CFO David Ebersman sold 23,400 shares of Facebook stock on the open market in a transaction dated Wednesday, February 5th. The shares were sold at an average price of $62.36, for a total value of $1,459,224.00. Following the completion of the sale, the chief financial officer now directly owns 286,345 shares of the company’s stock, valued at approximately $17,856,474. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.
Facebook, Inc (NASDAQ:FB) is engaged in building products to create utility for users, developers, and advertisers.
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