Gigamon Inc. (GIMO) Cut to “Sell” at Zacks Investment Research
Gigamon Inc. (NYSE:GIMO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.
According to Zacks, “Gigamon Inc. is engaged in providing intelligent Traffic Visibility solutions for enterprises, data centers and service providers. Its products consist of GigaVUE, GigaSECURE, GigaSMART and GigaTAP products. The Company’s fabric enables information technology organizations to forward traffic from network infrastructure to management, analysis, and compliance and security tools. It has operations primarily in the United States, the rest of North America, Europe, the Middle East, Africa, and the Asia Pacific. Gigamon Inc. is headquartered in Milpitas, California. “
Several other research analysts have also commented on GIMO. JMP Securities assumed coverage on Gigamon in a research report on Thursday. They issued a “market perform” rating on the stock. Needham & Company LLC reissued a “buy” rating and issued a $50.00 price objective (up from $40.00) on shares of Gigamon in a research report on Monday, July 18th. Northland Securities assumed coverage on Gigamon in a research report on Wednesday, June 22nd. They issued an “outperform” rating and a $50.00 price objective on the stock. TheStreet raised Gigamon from a “hold” rating to a “buy” rating in a research report on Thursday, July 28th. Finally, Raymond James Financial Inc. lowered Gigamon from an “outperform” rating to a “market perform” rating in a research report on Wednesday. One analyst has rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $53.00.
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Shares of Gigamon (NYSE:GIMO) traded down 0.29% during mid-day trading on Friday, hitting $51.48. The company had a trading volume of 811,183 shares. Gigamon has a 52-week low of $19.86 and a 52-week high of $56.38. The stock’s 50-day moving average is $49.29 and its 200-day moving average is $38.78. The stock has a market cap of $1.82 billion, a price-to-earnings ratio of 44.53 and a beta of 1.77.
Gigamon (NYSE:GIMO) last issued its earnings results on Thursday, July 28th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.06. The business had revenue of $75.10 million for the quarter, compared to analyst estimates of $70.10 million. Gigamon had a return on equity of 6.28% and a net margin of 16.46%. The business’s quarterly revenue was up 46.1% on a year-over-year basis. During the same period last year, the company posted $0.16 EPS. Equities analysts forecast that Gigamon will post $1.16 earnings per share for the current year.
In other Gigamon news, Director Ted C. Ho sold 60,000 shares of Gigamon stock in a transaction that occurred on Tuesday, October 4th. The stock was sold at an average price of $54.66, for a total value of $3,279,600.00. Following the completion of the transaction, the director now directly owns 11,837 shares in the company, valued at $647,010.42. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Mike Burns sold 2,068 shares of Gigamon stock in a transaction that occurred on Thursday, September 22nd. The shares were sold at an average price of $54.24, for a total value of $112,168.32. Following the completion of the transaction, the chief financial officer now owns 78,705 shares of the company’s stock, valued at $4,268,959.20. The disclosure for this sale can be found here. 9.66% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the stock. Nisa Investment Advisors L.L.C. increased its position in shares of Gigamon by 5.5% in the first quarter. Nisa Investment Advisors L.L.C. now owns 11,600 shares of the company’s stock worth $360,000 after buying an additional 600 shares during the last quarter. Teachers Advisors Inc. increased its position in shares of Gigamon by 24.1% in the first quarter. Teachers Advisors Inc. now owns 356,138 shares of the company’s stock worth $11,047,000 after buying an additional 69,148 shares during the last quarter. Prudential Financial Inc. bought a new position in shares of Gigamon during the first quarter worth approximately $356,000. Algert Global LLC bought a new position in shares of Gigamon during the first quarter worth approximately $328,000. Finally, BlackRock Group LTD increased its position in shares of Gigamon by 70.1% in the first quarter. BlackRock Group LTD now owns 27,799 shares of the company’s stock worth $862,000 after buying an additional 11,457 shares during the last quarter. Institutional investors own 78.33% of the company’s stock.
Gigamon Inc offers solutions that deliver visibility and control of traffic across networks. The Company’s Visibility Fabric solution consists of a distributed system of nodes that enable a level of visibility, modification and control of network traffic. Its GigaSECURE Security Delivery Platform enables the delivery of network, data as a service, for multiple security tools.
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