Vonage (VG) Downgraded by Zacks Investment Research

Vonage (NYSE:VG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

According to Zacks, “Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage’s service area encompasses more than 2000 active rate centers in over 130 global markets. Vonage is sold directly through their website and retail partners such as SAM’s Club, Amazon.com, RadioShack, Best Buy, Circuit City, Staples, Fry’s Electronics and Office Depot. Wholesale partners such as EarthLink, ARMSTRONG(R), Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 300,000 lines in service, Vonage continues to add more than 30,000 lines per month to its network. Over 10 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. “

A number of other equities research analysts have also recently issued reports on the stock. ValuEngine cut shares of Vonage from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 1st. Dougherty & Co reiterated a “buy” rating and issued a $19.00 price objective on shares of Vonage in a report on Thursday, November 29th. Stephens assumed coverage on shares of Vonage in a report on Thursday, January 3rd. They issued an “overweight” rating and a $14.00 price objective for the company. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $15.00 price objective on shares of Vonage in a report on Monday, January 7th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and seven have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $14.83.

Shares of NYSE VG traded up $0.04 during mid-day trading on Friday, reaching $9.42. The company had a trading volume of 1,292,295 shares, compared to its average volume of 1,765,710. Vonage has a twelve month low of $7.91 and a twelve month high of $14.73. The company has a current ratio of 0.75, a quick ratio of 0.74 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $2.25 billion, a PE ratio of 33.64, a price-to-earnings-growth ratio of 7.76 and a beta of 0.59.

In other Vonage news, Director Jeffrey A. Citron sold 233,332 shares of the company’s stock in a transaction dated Tuesday, November 27th. The shares were sold at an average price of $10.69, for a total transaction of $2,494,319.08. Following the completion of the sale, the director now directly owns 8,553,862 shares in the company, valued at $91,440,784.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jeffrey A. Citron sold 83,332 shares of the company’s stock in a transaction dated Wednesday, January 9th. The shares were sold at an average price of $9.21, for a total transaction of $767,487.72. Following the sale, the director now owns 8,558,801 shares of the company’s stock, valued at $78,826,557.21. The disclosure for this sale can be found here. Insiders have sold 1,433,330 shares of company stock valued at $14,243,967 over the last 90 days. Corporate insiders own 8.70% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. lifted its stake in shares of Vonage by 2.4% in the fourth quarter. BlackRock Inc. now owns 32,275,483 shares of the technology company’s stock valued at $281,766,000 after buying an additional 756,455 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Vonage by 3.2% in the third quarter. Alliancebernstein L.P. now owns 8,753,955 shares of the technology company’s stock valued at $123,956,000 after buying an additional 271,892 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Vonage by 3.2% in the third quarter. Dimensional Fund Advisors LP now owns 6,665,561 shares of the technology company’s stock valued at $94,385,000 after buying an additional 205,002 shares during the period. Glenmede Trust Co. NA lifted its stake in shares of Vonage by 15.1% in the third quarter. Glenmede Trust Co. NA now owns 4,545,778 shares of the technology company’s stock valued at $64,368,000 after buying an additional 595,360 shares during the period. Finally, Emerald Mutual Fund Advisers Trust lifted its stake in shares of Vonage by 0.3% in the third quarter. Emerald Mutual Fund Advisers Trust now owns 3,690,621 shares of the technology company’s stock valued at $52,259,000 after buying an additional 9,349 shares during the period. Institutional investors own 85.37% of the company’s stock.

About Vonage

Vonage Holdings Corp. provides communications services connecting people through cloud-connected devices worldwide. It offers various business services, including basic dial tone, call queue, conferencing, call groups, mobile functionality, CRM integration, and detailed analytics, as well as Vonage Business Cloud and Vonage Enterprise services.

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