Zacks Investment Research upgraded shares of Symantec (NASDAQ:SYMC) from a sell rating to a hold rating in a research note published on Tuesday morning.
According to Zacks, “Symantec recently reported dismal Q3 top-line performance mainly due a faster-than-expected shift to ratable and subscription-based revenue model. However, management is optimistic about the shift as it promises long-term growth opportunities for the company. We believe that realignment of its sales force has helped it grabbing more deals worth above $1 million in the third quarter. The accelerated adoption of Symantec’s Integrated Cyber Defense Platform and cloud proxy solution is a major tailwind. Nonetheless, we consider that although the sale of its certified authority business will avoid conflicts with Alphabet, the loss of high margin business may hurt Symantec’s near-term profitability. Moreover, increasing competition from existing and newer companies remain headwinds. The uncertainty over PC sales adds to its woes. The stock has underperformed the industry in the last one year.”
A number of other analysts also recently issued reports on the stock. BidaskClub downgraded shares of Symantec from a sell rating to a strong sell rating in a report on Saturday, January 13th. Morgan Stanley cut their price objective on shares of Symantec from $34.00 to $31.00 and set an equal weight rating for the company in a report on Friday, November 3rd. CIBC reissued an outperform rating and issued a $33.00 price objective (down previously from $35.00) on shares of Symantec in a report on Thursday, November 2nd. Deutsche Bank started coverage on shares of Symantec in a report on Tuesday, December 19th. They issued a hold rating and a $30.00 price objective for the company. Finally, Barclays reissued a buy rating and issued a $36.00 price objective on shares of Symantec in a report on Thursday, November 2nd. Four equities research analysts have rated the stock with a sell rating, sixteen have issued a hold rating and eight have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $30.92.
Symantec (NASDAQ:SYMC) last posted its quarterly earnings data on Wednesday, January 31st. The technology company reported $0.49 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.44 by $0.05. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.27 billion. Symantec had a net margin of 22.24% and a return on equity of 14.26%. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.32 EPS. equities research analysts expect that Symantec will post 0.99 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 14th. Investors of record on Tuesday, February 20th will be paid a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 1.16%. The ex-dividend date is Friday, February 16th. Symantec’s payout ratio is 20.41%.
In related news, EVP Francis C. Rosch sold 57,103 shares of the stock in a transaction that occurred on Wednesday, December 6th. The shares were sold at an average price of $27.42, for a total value of $1,565,764.26. Following the completion of the transaction, the executive vice president now owns 325,026 shares of the company’s stock, valued at approximately $8,912,212.92. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.30% of the stock is owned by corporate insiders.
Large investors have recently modified their holdings of the stock. United Bank Inc. bought a new position in Symantec in the 3rd quarter valued at approximately $200,000. Genesee Valley Trust Co. acquired a new position in Symantec in the 4th quarter valued at approximately $209,000. Lenox Wealth Advisors Inc. acquired a new position in Symantec in the 4th quarter valued at approximately $224,000. Jaffetilchin Investment Partners LLC acquired a new position in Symantec in the 3rd quarter valued at approximately $225,000. Finally, Reilly Financial Advisors LLC increased its position in Symantec by 223.5% in the 4th quarter. Reilly Financial Advisors LLC now owns 8,412 shares of the technology company’s stock valued at $236,000 after acquiring an additional 5,812 shares during the period. 94.93% of the stock is owned by institutional investors and hedge funds.
Symantec Company Profile
Symantec Corporation is a United States-based cyber security company. The Company offers products under categories, such as threat protection, information protection and cyber security services. Under threat protection, it offers Advanced Threat Protection, Endpoint Protection, Endpoint Protection Cloud, IT Management Suite, Email Security, Cloud, Data Center Security and Cloud Workload Protection products.
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