Shutterfly, Inc. (SFLY) Rating Lowered to Hold at Zacks Investment Research
Shutterfly, Inc. (NASDAQ:SFLY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Shutterfly’s focus on improving operational efficiency through major restructuring bodes well in the long term. Continual product innovations and focus on improving technology-related offerings are to be solid growth drivers. The Shutterfly 3.0 initiative under which it aims to create a platform and device-agnostic memory management and personalized e-commerce solution, bodes well. Notably, it has mostly positive record of earnings surprises in the recent quarters while estimates are stable ahead of its Q2 earnings release. Yet, Shutterfly is likely to incur huge restructuring costs in 2017 and revenue growth is expected to be very slow in the year. A rise in manufacturing, labor and training costs could weigh on margins. The company’s revenues are susceptible to travel industry and consumer spending trends, which raises concern. Also, its shares have underperformed the Zacks classified Internet Content industry year to date.”
Several other research firms have also commented on SFLY. BidaskClub lowered shares of Shutterfly from a “sell” rating to a “strong sell” rating in a research note on Thursday, July 13th. TheStreet lowered shares of Shutterfly from a “b-” rating to a “c+” rating in a research note on Tuesday, June 13th. ValuEngine raised shares of Shutterfly from a “sell” rating to a “hold” rating in a research note on Tuesday, June 6th. Cantor Fitzgerald reaffirmed a “buy” rating and set a $57.00 price objective on shares of Shutterfly in a research note on Tuesday, May 16th. Finally, Robert W. Baird reaffirmed a “neutral” rating and set a $50.00 price objective (up from $47.00) on shares of Shutterfly in a research note on Saturday, April 29th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and four have given a buy rating to the stock. The company has an average rating of “Hold” and an average target price of $53.10.
Shutterfly (NASDAQ SFLY) traded down 0.52% during mid-day trading on Wednesday, reaching $47.60. 428,608 shares of the company were exchanged. The stock has a 50 day moving average of $48.07 and a 200-day moving average of $48.75. The stock has a market capitalization of $1.61 billion, a price-to-earnings ratio of 136.39 and a beta of 0.85. Shutterfly has a one year low of $41.91 and a one year high of $54.60.
Shutterfly (NASDAQ:SFLY) last released its earnings results on Tuesday, April 25th. The technology company reported ($0.84) EPS for the quarter, topping analysts’ consensus estimates of ($1.03) by $0.19. Shutterfly had a net margin of 1.06% and a return on equity of 3.29%. The company had revenue of $191.97 million for the quarter, compared to analysts’ expectations of $187.34 million. During the same quarter last year, the business earned ($0.85) EPS. The firm’s revenue was up 5.7% compared to the same quarter last year. On average, equities analysts expect that Shutterfly will post $0.56 earnings per share for the current fiscal year.
Shutterfly declared that its board has initiated a stock buyback plan on Tuesday, April 18th that authorizes the company to buyback $140.00 million in outstanding shares. This buyback authorization authorizes the technology company to reacquire up to 8.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.
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In related news, Director Ann Mather sold 1,662 shares of the company’s stock in a transaction that occurred on Monday, May 22nd. The stock was sold at an average price of $49.86, for a total value of $82,867.32. Following the sale, the director now owns 6,799 shares in the company, valued at $338,998.14. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Jason Sebring sold 2,481 shares of the company’s stock in a transaction that occurred on Monday, June 19th. The shares were sold at an average price of $48.57, for a total value of $120,502.17. Following the completion of the sale, the vice president now owns 3,125 shares in the company, valued at approximately $151,781.25. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 60,290 shares of company stock worth $2,958,580. Corporate insiders own 5.70% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Elkfork Partners LLC purchased a new position in Shutterfly during the first quarter valued at approximately $116,000. LS Investment Advisors LLC boosted its position in shares of Shutterfly by 132.9% in the second quarter. LS Investment Advisors LLC now owns 2,888 shares of the technology company’s stock worth $137,000 after buying an additional 1,648 shares during the period. Meadow Creek Investment Management LLC purchased a new position in shares of Shutterfly during the first quarter worth approximately $141,000. Ameritas Investment Partners Inc. purchased a new position in shares of Shutterfly during the first quarter worth approximately $144,000. Finally, State of Alaska Department of Revenue purchased a new position in shares of Shutterfly during the first quarter worth approximately $180,000.
Shutterfly, Inc is an online manufacturer and retailer of personalized products and services. The Company focuses on helping consumers manage their memories through the medium of photography. The Company’s segments are Consumer and Shutterfly Business Solutions (SBS). The Consumer segment offers photo-based products, such as photo books, stationery and greeting cards, other photo-based merchandise, photo prints and statement gifts.
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