EarthLink Holdings Corp. (ELNK) Rating Increased to Buy at Zacks Investment Research
EarthLink Holdings Corp. (NASDAQ:ELNK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm presently has a $6.75 price target on the stock. Zacks Investment Research’s price objective suggests a potential upside of 13.45% from the company’s current price.
According to Zacks, “EarthLink Holdings Corp. provides IT services and communications to business and residential customers primarily in the United States. The company’s services consists of cloud computing, managed and private cloud, virtualization services such as managed hosting and cloud workspace, IT security, application hosting, colocation and IT support services. It also offers data and voice IP services. EarthLink Holdings Corp., formerly known as EarthLink, Inc., is headquartered in Atlanta, GA. “
Several other brokerages have also commented on ELNK. B. Riley initiated coverage on shares of EarthLink Holdings Corp. in a research report on Sunday, August 14th. They set a “buy” rating and a $10.00 target price on the stock. Barclays PLC boosted their target price on shares of EarthLink Holdings Corp. to $18.00 and gave the stock a “neutral” rating in a research report on Thursday, August 18th. Finally, Cowen and Company initiated coverage on EarthLink Holdings Corp. in a research note on Monday. They set an “outperform” rating and a $8.00 price target for the company. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $9.85.
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Shares of EarthLink Holdings Corp. (NASDAQ:ELNK) traded down 0.50% on Monday, reaching $5.95. 494,447 shares of the company’s stock traded hands. The stock’s 50-day moving average price is $6.24 and its 200-day moving average price is $6.29. EarthLink Holdings Corp. has a 52 week low of $4.97 and a 52 week high of $9.86. The stock’s market capitalization is $627.69 million.
EarthLink Holdings Corp. (NASDAQ:ELNK) last issued its earnings results on Monday, August 8th. The company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.03 by $0.01. The company had revenue of $240.40 million for the quarter, compared to analyst estimates of $246.40 million. EarthLink Holdings Corp. had a negative net margin of 1.06% and a negative return on equity of 43.21%. The business’s revenue was down 15.3% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.10) EPS. Equities analysts predict that EarthLink Holdings Corp. will post $0.08 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Tuesday, October 4th. Investors of record on Tuesday, September 20th were paid a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 3.36%. The ex-dividend date was Friday, September 16th. EarthLink Holdings Corp.’s payout ratio is -181.82%.
In related news, EVP Rick C. Froehlich sold 31,499 shares of the business’s stock in a transaction dated Monday, September 12th. The shares were sold at an average price of $6.33, for a total value of $199,388.67. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.70% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in ELNK. Vanguard Group Inc. increased its position in shares of EarthLink Holdings Corp. by 0.8% in the second quarter. Vanguard Group Inc. now owns 14,817,760 shares of the company’s stock valued at $94,834,000 after buying an additional 111,979 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of EarthLink Holdings Corp. by 2.0% in the first quarter. Renaissance Technologies LLC now owns 8,173,139 shares of the company’s stock valued at $46,342,000 after buying an additional 158,700 shares during the last quarter. BlackRock Institutional Trust Company N.A. increased its position in shares of EarthLink Holdings Corp. by 55.7% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 4,177,969 shares of the company’s stock valued at $26,739,000 after buying an additional 1,493,880 shares during the last quarter. First Trust Advisors LP increased its position in shares of EarthLink Holdings Corp. by 1.1% in the second quarter. First Trust Advisors LP now owns 3,742,244 shares of the company’s stock valued at $23,950,000 after buying an additional 41,405 shares during the last quarter. Finally, Royce & Associates LP increased its position in shares of EarthLink Holdings Corp. by 3.4% in the first quarter. Royce & Associates LP now owns 3,168,130 shares of the company’s stock valued at $17,963,000 after buying an additional 105,500 shares during the last quarter. 89.02% of the stock is owned by hedge funds and other institutional investors.
About EarthLink Holdings Corp.
EarthLink, Inc (EarthLink), is a network, communications and information technology (IT) services provider to business and residential customers in the United States. The Company operates in two segments: Business Services and Consumer Services. EarthLink’s Business Services segment provides a range of data, voice, managed IT and equipment services to business customers.
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