Gigamon Inc. (GIMO) Downgraded by Zacks Investment Research
Gigamon Inc. (NYSE:GIMO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors 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 also recently issued reports on the company. Stifel Nicolaus initiated coverage on Gigamon in a report on Tuesday, August 30th. They set a “hold” rating on the stock. Citigroup Inc. downgraded Gigamon to a “market perform” rating in a report on Wednesday. They noted that the move was a valuation call. DA Davidson downgraded Gigamon from a “buy” rating to a “neutral” rating and upped their price objective for the stock from $54.00 to $59.00 in a report on Wednesday. They noted that the move was a valuation call. William Blair reaffirmed an “outperform” rating on shares of Gigamon in a report on Wednesday, September 14th. Finally, Rosenblatt Securities began coverage on Gigamon in a research note on Monday, August 1st. They issued a “buy” rating and a $55.00 price target on the stock. One equities research 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’s stock. The company currently has an average 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 midday trading on Friday, reaching $51.48. The company’s stock had a trading volume of 811,183 shares. The stock’s 50-day moving average is $49.29 and its 200 day moving average is $38.78. Gigamon has a 12 month low of $19.86 and a 12 month high of $56.38. The stock has a market capitalization of $1.82 billion, a P/E ratio of 44.53 and a beta of 1.77.
Gigamon (NYSE:GIMO) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.06. Gigamon had a return on equity of 6.28% and a net margin of 16.46%. The firm had revenue of $75.10 million for the quarter, compared to the consensus estimate of $70.10 million. During the same quarter in the prior year, the business earned $0.16 EPS. The business’s revenue for the quarter was up 46.1% compared to the same quarter last year. On average, analysts expect that Gigamon will post $1.16 earnings per share for the current fiscal year.
In related news, CFO Mike Burns sold 1,000 shares of the firm’s stock in a transaction on Monday, September 19th. The stock was sold at an average price of $52.10, for a total transaction of $52,100.00. Following the sale, the chief financial officer now owns 77,637 shares of the company’s stock, valued at approximately $4,044,887.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Shehzad Merchant sold 72,763 shares of the firm’s stock in a transaction on Thursday, August 4th. The stock was sold at an average price of $44.62, for a total value of $3,246,685.06. Following the sale, the insider now directly owns 125,523 shares in the company, valued at approximately $5,600,836.26. The disclosure for this sale can be found here. Corporate insiders own 9.66% of the company’s stock.
Hedge funds have recently modified their holdings of the company. 1832 Asset Management L.P. purchased a new position in Gigamon during the second quarter worth about $45,596,000. AO Asset Management LLC purchased a new position in Gigamon during the second quarter worth about $20,695,000. Bank of Montreal Can purchased a new position in Gigamon during the second quarter worth about $13,572,000. Harvest Capital Strategies LLC purchased a new position in Gigamon during the first quarter worth about $7,160,000. Finally, Sylebra HK Co Ltd purchased a new position in Gigamon during the second quarter worth about $8,609,000. 78.33% of the stock is currently owned by institutional investors and hedge funds.
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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