BOX (NYSE:BOX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Box’s top line has been gaining traction driven by strength across international markets, growing add-on products and positive contribution from its strategic partnership with Microsoft. The company is currently working on enriching its cloud content management and AI platforms. It made some notable partnership extensions in this regard in fiscal third-quarter 2018 with Apple and Microsoft. Box has a rich technology partner ecosystem and it rides on strong free cash flow, billings and retention rate. On the negative side, the company has been incurring losses since its inception and does not expect profits in the foreseeable future. In past 12 months, the stock has underperformed the industry it belongs to.”
Several other brokerages also recently commented on BOX. Drexel Hamilton reaffirmed a “buy” rating and issued a $28.00 target price on shares of BOX in a research note on Monday, November 27th. Oppenheimer reaffirmed a “buy” rating and issued a $24.00 target price on shares of BOX in a research note on Thursday, November 30th. JMP Securities upped their target price on shares of BOX to $25.00 and gave the company an “outperform” rating in a research note on Thursday, November 30th. Vetr raised shares of BOX from a “buy” rating to a “strong-buy” rating and set a $25.42 target price for the company in a research note on Wednesday, November 29th. Finally, Canaccord Genuity reaffirmed a “buy” rating and issued a $25.00 target price on shares of BOX in a research note on Thursday, November 30th. One research analyst has rated the stock with a sell rating, three have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. The stock presently has an average rating of “Buy” and an average price target of $24.24.
BOX (NYSE:BOX) last issued its earnings results on Wednesday, November 29th. The software maker reported ($0.13) EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of ($0.13). BOX had a negative net margin of 33.20% and a negative return on equity of 313.90%. The firm had revenue of $129.30 million during the quarter, compared to the consensus estimate of $128.67 million. During the same quarter in the prior year, the firm earned ($0.14) earnings per share. The business’s quarterly revenue was up 25.8% on a year-over-year basis. equities analysts anticipate that BOX will post -1.17 earnings per share for the current fiscal year.
In related news, Director Daniel J. Levin sold 10,000 shares of the stock in a transaction on Tuesday, January 16th. The shares were sold at an average price of $22.39, for a total transaction of $223,900.00. Following the completion of the transaction, the director now owns 5,790 shares in the company, valued at $129,638.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Dana L. Evan sold 7,500 shares of the stock in a transaction on Wednesday, January 3rd. The stock was sold at an average price of $21.65, for a total transaction of $162,375.00. Following the transaction, the director now owns 21,399 shares of the company’s stock, valued at approximately $463,288.35. The disclosure for this sale can be found here. Insiders sold 2,082,309 shares of company stock valued at $43,613,662 in the last quarter. Corporate insiders own 20.59% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in BOX. Ameritas Investment Partners Inc. boosted its holdings in BOX by 81.3% during the second quarter. Ameritas Investment Partners Inc. now owns 6,896 shares of the software maker’s stock worth $126,000 after purchasing an additional 3,092 shares during the last quarter. Amalgamated Bank acquired a new position in BOX during the second quarter worth $183,000. Principal Financial Group Inc. acquired a new position in BOX during the second quarter worth $199,000. Dorsey & Whitney Trust CO LLC acquired a new stake in BOX in the fourth quarter valued at $203,000. Finally, Welch Capital Partners LLC NY acquired a new stake in BOX in the fourth quarter valued at $226,000. Institutional investors and hedge funds own 62.02% of the company’s stock.
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BOX Company Profile
Box, Inc provides an enterprise content management platform that enables organizations of all sizes to manage enterprise content while allowing access and sharing of this content from anywhere, on any device. With the Company’s Software-as-a-Service (SaaS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations.
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