Zacks Investment Research upgraded shares of Mellanox Technologies (NASDAQ:MLNX) from a hold rating to a buy rating in a research note released on Tuesday morning. The firm currently has $82.00 target price on the semiconductor producer’s stock.
According to Zacks, “Mellanox is benefiting from strong customer adoption of its Gigabit EDR solutions in machine learning, artificial intelligence, high-performance computing, database, storage and more. Further, robust demand for Mellanox’s InfiniBand solutions is a key catalyst. The company has also won several contracts from the likes of NetApp, the University of Toronto and NASA Ames Research Center, which further reflects strong demand for its solutions. Notably, shares of the company have outperformed the industry in the past year. Additionally, Mellanox’s collaboration with Microsemi Corporation is also expected to strengthen its presence in the high performance computing market, going forward. The company has positive record of earnings surprises in recent quarters. Estimates have been going up ahead of the company’s Q3 earnings release. However, exposure to foreign currency, stiff competition and customer concentration remain headwinds.”
A number of other equities research analysts have also recently commented on the stock. BidaskClub cut shares of Mellanox Technologies from a hold rating to a sell rating in a report on Friday, August 17th. ValuEngine cut shares of Mellanox Technologies from a strong-buy rating to a buy rating in a report on Tuesday, September 4th. Barclays increased their price target on shares of Mellanox Technologies from $103.00 to $107.00 and gave the company a buy rating in a report on Wednesday, July 18th. Jefferies Financial Group started coverage on shares of Mellanox Technologies in a report on Tuesday, October 2nd. They set a buy rating and a $110.00 price target on the stock. Finally, DA Davidson increased their price target on shares of Mellanox Technologies to $115.00 and gave the company a $83.60 rating in a report on Wednesday, July 18th. One research analyst has rated the stock with a sell rating, four have given a hold rating and twelve have given a buy rating to the company’s stock. Mellanox Technologies presently has a consensus rating of Buy and an average price target of $100.67.
NASDAQ:MLNX opened at $71.72 on Tuesday. Mellanox Technologies has a 52 week low of $42.25 and a 52 week high of $90.45. The company has a market cap of $3.89 billion, a PE ratio of 78.02, a PEG ratio of 1.44 and a beta of 0.54.
Mellanox Technologies (NASDAQ:MLNX) last posted its quarterly earnings results on Tuesday, July 17th. The semiconductor producer reported $1.25 EPS for the quarter, beating the Zacks’ consensus estimate of $1.09 by $0.16. Mellanox Technologies had a net margin of 5.61% and a return on equity of 12.26%. The firm had revenue of $268.46 million for the quarter, compared to analysts’ expectations of $263.61 million. During the same quarter in the prior year, the company posted $0.44 earnings per share. The business’s revenue for the quarter was up 26.7% on a year-over-year basis. As a group, sell-side analysts forecast that Mellanox Technologies will post 3.41 EPS for the current year.
In related news, VP Marc Sultzbaugh sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, July 20th. The shares were sold at an average price of $85.00, for a total value of $850,000.00. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Clifton Thomas Weatherford sold 4,617 shares of the firm’s stock in a transaction that occurred on Friday, July 20th. The stock was sold at an average price of $83.90, for a total transaction of $387,366.30. Following the completion of the sale, the director now owns 6,000 shares in the company, valued at approximately $503,400. The disclosure for this sale can be found here. Insiders sold 40,956 shares of company stock worth $3,347,425 in the last 90 days. 4.20% of the stock is currently owned by corporate insiders.
Hedge funds have recently modified their holdings of the stock. Fortis Advisors LLC purchased a new stake in Mellanox Technologies in the second quarter worth approximately $122,000. Cerebellum GP LLC purchased a new position in shares of Mellanox Technologies during the 2nd quarter worth $176,000. Empirical Finance LLC purchased a new position in shares of Mellanox Technologies during the 2nd quarter worth $213,000. Bayesian Capital Management LP purchased a new position in shares of Mellanox Technologies during the 1st quarter worth $219,000. Finally, Schwab Charles Investment Management Inc. purchased a new position in shares of Mellanox Technologies during the 2nd quarter worth $257,000. Institutional investors own 75.29% of the company’s stock.
About Mellanox Technologies
Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, and sells interconnect products and solutions worldwide. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. The company offers InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; Ethernet solutions, such as Ethernet switch products and Ethernet adapters for use in enterprise data center, high-performance computing, embedded environments, hyperscale, Web 2.0, and cloud data centers.
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