Smart Global (SGH) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Smart Global (NASDAQ:SGH) from a buy rating to a hold rating in a research note released on Wednesday morning.

According to Zacks, “Smart Global Holdings Inc. is a designer, manufacturer and supplier of electronic subsystems to OEMs. It engaged in the computer, industrial, networking, telecommunications, aerospace and defense markets. The company operates primarily in the U.S., Europe, Asia and Latin America. Smart Global Holdings Inc. is headquartered in Newark, California. “

SGH has been the topic of several other research reports. ValuEngine upgraded shares of Smart Global from a sell rating to a hold rating in a report on Saturday, December 1st. BidaskClub upgraded shares of Smart Global from a sell rating to a hold rating in a report on Wednesday, November 21st. Barclays dropped their target price on shares of Smart Global from $55.00 to $40.00 and set an overweight rating on the stock in a report on Tuesday, October 23rd. Roth Capital dropped their target price on shares of Smart Global from $70.00 to $60.00 and set a buy rating on the stock in a report on Friday, October 5th. Finally, Deutsche Bank dropped their target price on shares of Smart Global from $60.00 to $50.00 and set a buy rating on the stock in a report on Friday, October 5th. Three research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $53.17.

NASDAQ:SGH opened at $32.31 on Wednesday. Smart Global has a 52 week low of $25.84 and a 52 week high of $56.69. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.02 and a current ratio of 1.76. The company has a market cap of $757.74 million, a PE ratio of 5.62, a PEG ratio of 0.34 and a beta of 0.39.

Smart Global (NASDAQ:SGH) last posted its quarterly earnings results on Thursday, October 4th. The company reported $1.72 EPS for the quarter, beating the Zacks’ consensus estimate of $1.66 by $0.06. Smart Global had a net margin of 9.27% and a return on equity of 92.01%. The firm had revenue of $373.97 million for the quarter, compared to analysts’ expectations of $368.51 million. During the same quarter in the prior year, the company posted $0.79 earnings per share. The business’s revenue for the quarter was up 67.7% on a year-over-year basis. As a group, equities analysts predict that Smart Global will post 6.61 earnings per share for the current fiscal year.

In related news, insider Alan Marten sold 8,800 shares of the firm’s stock in a transaction that occurred on Monday, September 17th. The shares were sold at an average price of $29.70, for a total value of $261,360.00. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Jack A. Pacheco sold 7,500 shares of the firm’s stock in a transaction that occurred on Thursday, September 20th. The stock was sold at an average price of $30.25, for a total transaction of $226,875.00. The disclosure for this sale can be found here. Insiders sold 312,460 shares of company stock worth $9,889,722 in the last 90 days. 6.90% of the stock is currently owned by corporate insiders.

Several institutional investors have recently modified their holdings of SGH. Acadian Asset Management LLC purchased a new position in shares of Smart Global during the 2nd quarter worth $808,000. Virginia Retirement Systems ET AL purchased a new position in shares of Smart Global during the 2nd quarter worth $468,000. Cavalier Investments LLC purchased a new position in shares of Smart Global during the 2nd quarter worth $771,000. Engineers Gate Manager LP boosted its stake in shares of Smart Global by 27.6% during the 2nd quarter. Engineers Gate Manager LP now owns 11,400 shares of the company’s stock worth $363,000 after acquiring an additional 2,465 shares during the last quarter. Finally, Navellier & Associates Inc boosted its stake in shares of Smart Global by 340.2% during the 2nd quarter. Navellier & Associates Inc now owns 32,005 shares of the company’s stock worth $1,020,000 after acquiring an additional 24,735 shares during the last quarter. Institutional investors and hedge funds own 83.72% of the company’s stock.

Smart Global Company Profile

SMART Global Holdings, Inc designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements.

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