Sigma Designs, Inc. (SIGM) Given “Hold” Rating at Needham & Company LLC
Sigma Designs, Inc. (NASDAQ:SIGM)‘s stock had its “hold” rating restated by equities research analysts at Needham & Company LLC in a report issued on Thursday.
The analysts wrote, “Last night, SIGM announced restructuring actions for its Connected Smart TV segment that will reduce quarterly OPEX levels and accelerate the company’s return to profitability. Reflecting actions beginning in 2H of October and lasting through F4Q18, OPEX is expected to be reduced from $26MM seen in F2Q18 to $17-18MM in F1Q19, with FY19 OPEX down ~$34MM from FY18 levels. With TV staffing levels approximately cut in half, we now expect TV segment revenue to decline Y/Y in FY19 reflecting fewer resources dedicated to the business. On a positive note, the restructuring actions should pave the way for the TV business to be breakeven to modestly profitable in FY19. While the company is continuing with its review of strategic alternatives, we now see the sale of the TV business as less likely given its smaller scale.””
Separately, Zacks Investment Research lowered shares of Sigma Designs from a “hold” rating to a “sell” rating in a research note on Friday, September 15th. Three analysts have rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $7.50.
Shares of Sigma Designs (SIGM) opened at 6.50 on Thursday. The stock has a 50 day moving average price of $6.19 and a 200 day moving average price of $6.13. Sigma Designs has a 12 month low of $5.20 and a 12 month high of $8.35. The firm’s market capitalization is $250.35 million.
Sigma Designs (NASDAQ:SIGM) last released its quarterly earnings data on Thursday, September 7th. The semiconductor company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of ($0.19) by ($0.04). The firm had revenue of $39.50 million for the quarter, compared to analyst estimates of $39.63 million. Sigma Designs had a negative return on equity of 18.73% and a negative net margin of 19.53%. The firm’s revenue for the quarter was down 35.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.07 earnings per share. On average, analysts expect that Sigma Designs will post ($0.78) earnings per share for the current year.
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In related news, major shareholder Soros Fund Management Llc purchased 7,210 shares of the firm’s stock in a transaction that occurred on Friday, September 8th. The shares were acquired at an average price of $5.83 per share, for a total transaction of $42,034.30. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. In the last quarter, insiders purchased 104,958 shares of company stock worth $613,553. 4.50% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Strs Ohio acquired a new position in Sigma Designs in the 2nd quarter valued at about $101,000. Ameriprise Financial Inc. acquired a new position in Sigma Designs in the 2nd quarter valued at about $102,000. Global X Management Co. LLC grew its stake in Sigma Designs by 30.5% in the 2nd quarter. Global X Management Co. LLC now owns 17,758 shares of the semiconductor company’s stock valued at $104,000 after buying an additional 4,151 shares during the last quarter. Voya Investment Management LLC grew its stake in Sigma Designs by 26.2% in the 2nd quarter. Voya Investment Management LLC now owns 19,735 shares of the semiconductor company’s stock valued at $115,000 after buying an additional 4,097 shares during the last quarter. Finally, American International Group Inc. grew its stake in Sigma Designs by 7.1% in the 1st quarter. American International Group Inc. now owns 22,075 shares of the semiconductor company’s stock valued at $138,000 after buying an additional 1,458 shares during the last quarter. Institutional investors and hedge funds own 60.98% of the company’s stock.
About Sigma Designs
Sigma Designs, Inc is a provider of global integrated semiconductor solutions. The Company offers media platforms for use in the home entertainment and home control markets. The Company sells its products into markets, including smart television, media connectivity, set-top box and Internet of Things (IoT) devices.
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