BOX (NYSE:BOX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Box has been incurring losses since its inception. The company reported fiscal third-quarter adjusted loss of cents per share, which was however narrower than the Zacks Consensus Estimate. The increasing expenses incurred on new new cloud investments has been hurting profits. Also, rising cloud competition is a big headwind. The stock has underperformed the industry it belongs to on a year-to-date basis. However, the increasing adoption of its cloud content management platform by its existing customers as well as new customers is a big positive. Expanding paid customer base is aiding its top-line growth. Further, Box’s strong focus toward advancement of its global go-to-market strategy is helping it to attract customers from the global market to its platform. Also, strong efforts toward enriching the cloud management and AI platforms will drive Box's growth in fiscal 2019.”
Several other research analysts have also recently commented on BOX. Rosenblatt Securities restated a “hold” rating and issued a $25.00 target price on shares of BOX in a research report on Sunday, August 26th. JMP Securities reiterated an “outperform” rating and issued a $32.00 price objective on shares of BOX in a report on Wednesday, August 29th. DA Davidson decreased their price objective on shares of BOX from $31.00 to $30.00 and set a “buy” rating for the company in a report on Wednesday, August 29th. ValuEngine cut shares of BOX from a “strong-buy” rating to a “buy” rating in a report on Thursday, August 30th. Finally, Deutsche Bank initiated coverage on shares of BOX in a report on Monday, October 8th. They issued a “hold” rating and a $22.00 price objective for the company. One research analyst has rated the stock with a sell rating, five have given a hold rating, eight have given a buy rating and one has given a strong buy rating to the company’s stock. BOX currently has a consensus rating of “Buy” and a consensus target price of $26.00.
BOX (NYSE:BOX) last posted its earnings results on Wednesday, November 28th. The software maker reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.07) by $0.01. BOX had a negative net margin of 25.39% and a negative return on equity of 457.76%. The firm had revenue of $155.94 million during the quarter, compared to analysts’ expectations of $154.58 million. During the same quarter in the prior year, the firm earned ($0.13) EPS. BOX’s quarterly revenue was up 20.6% on a year-over-year basis. As a group, equities analysts expect that BOX will post -0.99 earnings per share for the current year.
In related news, Director Daniel J. Levin sold 70,000 shares of the stock in a transaction that occurred on Monday, September 17th. The shares were sold at an average price of $24.00, for a total transaction of $1,680,000.00. Following the completion of the sale, the director now directly owns 5,790 shares of the company’s stock, valued at $138,960. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Dana L. Evan sold 12,000 shares of the stock in a transaction that occurred on Tuesday, September 25th. The shares were sold at an average price of $23.89, for a total transaction of $286,680.00. Following the sale, the director now directly owns 117,251 shares of the company’s stock, valued at $2,801,126.39. The disclosure for this sale can be found here. Insiders sold 127,000 shares of company stock valued at $2,904,330 over the last quarter. Insiders own 8.51% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the stock. Fort Washington Investment Advisors Inc. OH lifted its stake in BOX by 6.7% during the third quarter. Fort Washington Investment Advisors Inc. OH now owns 44,292 shares of the software maker’s stock valued at $1,059,000 after purchasing an additional 2,773 shares during the last quarter. Garde Capital Inc. lifted its stake in BOX by 17.4% during the second quarter. Garde Capital Inc. now owns 24,469 shares of the software maker’s stock valued at $611,000 after purchasing an additional 3,625 shares during the last quarter. State Board of Administration of Florida Retirement System lifted its stake in BOX by 7.4% during the second quarter. State Board of Administration of Florida Retirement System now owns 60,949 shares of the software maker’s stock valued at $1,523,000 after purchasing an additional 4,200 shares during the last quarter. Spirit of America Management Corp NY acquired a new stake in BOX during the third quarter valued at approximately $100,000. Finally, Cypress Capital Management LLC WY acquired a new stake in BOX during the second quarter valued at approximately $113,000. 65.63% of the stock is owned by institutional investors and hedge funds.
Box, Inc provides cloud content management platform that enables organizations of various sizes to manage and share their enterprise content from anywhere or any device. The company's Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features.
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