Zacks Investment Research Lowers GTT Communications (NYSE:GTT) to Sell

Zacks Investment Research downgraded shares of GTT Communications (NYSE:GTT) from a hold rating to a sell rating in a research note released on Wednesday morning, Zacks.com reports.

According to Zacks, “GTT Communications, Inc. offers cloud networking; high bandwidth IP transit for content delivery and hosting as well as network-to-network carrier interconnects solutions and data connectivity solutions. The company’s network consists of a layer 2 switched Ethernet and IP transit or dedicated internet access. It operates primarily in North America, Europe and Asia. GTT Communications, Inc., formerly known as Global Telecom & Technology, Inc., is headquartered in McLean, Virginia. “

A number of other research analysts also recently issued reports on GTT. Raymond James downgraded GTT Communications from an outperform rating to a market perform rating and set a $11.50 price target on the stock. in a report on Monday, August 12th. ValuEngine upgraded GTT Communications from a sell rating to a hold rating in a research note on Thursday, August 1st. Oppenheimer dropped their target price on GTT Communications from $42.00 to $12.00 and set an outperform rating on the stock in a research note on Friday, August 9th. Cowen dropped their target price on GTT Communications from $37.00 to $21.00 and set an outperform rating on the stock in a research note on Friday, August 9th. Finally, Craig Hallum downgraded GTT Communications from a buy rating to a hold rating in a research note on Friday, August 9th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $29.31.

Shares of NYSE:GTT opened at $6.88 on Wednesday. GTT Communications has a 12-month low of $4.90 and a 12-month high of $43.35. The business’s fifty day simple moving average is $8.90 and its 200-day simple moving average is $20.70. The company has a market capitalization of $387.76 million, a PE ratio of -4.33 and a beta of 1.56. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 9.85.

GTT Communications (NYSE:GTT) last announced its quarterly earnings results on Thursday, August 8th. The technology company reported ($0.59) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.04) by ($0.55). GTT Communications had a negative net margin of 7.66% and a negative return on equity of 13.01%. The company had revenue of $433.80 million during the quarter, compared to analysts’ expectations of $447.66 million. During the same quarter in the prior year, the business posted ($2.83) earnings per share. The company’s revenue was up 32.7% compared to the same quarter last year. Research analysts predict that GTT Communications will post -1.33 EPS for the current year.

In related news, General Counsel Chris Mckee sold 2,922 shares of GTT Communications stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $11.29, for a total value of $32,989.38. Following the completion of the transaction, the general counsel now owns 481,822 shares in the company, valued at approximately $5,439,770.38. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Michael Sicoli sold 3,124 shares of GTT Communications stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $11.29, for a total value of $35,269.96. Following the completion of the transaction, the chief financial officer now owns 391,537 shares of the company’s stock, valued at approximately $4,420,452.73. The disclosure for this sale can be found here. In the last ninety days, insiders have acquired 1,615,690 shares of company stock valued at $14,274,682 and have sold 17,115 shares valued at $175,397. Insiders own 40.84% of the company’s stock.

A number of large investors have recently bought and sold shares of GTT. Macquarie Group Ltd. increased its stake in GTT Communications by 68.3% during the 2nd quarter. Macquarie Group Ltd. now owns 10,600 shares of the technology company’s stock worth $186,000 after buying an additional 4,300 shares in the last quarter. Athena Capital Advisors LLC purchased a new stake in shares of GTT Communications in the second quarter valued at approximately $189,000. First Business Financial Services Inc. purchased a new stake in shares of GTT Communications in the second quarter valued at approximately $222,000. Balyasny Asset Management LLC purchased a new stake in shares of GTT Communications in the second quarter valued at approximately $277,000. Finally, Bessemer Group Inc. grew its position in shares of GTT Communications by 42.6% in the second quarter. Bessemer Group Inc. now owns 16,735 shares of the technology company’s stock valued at $295,000 after purchasing an additional 5,000 shares in the last quarter. Institutional investors own 84.13% of the company’s stock.

About GTT Communications

GTT Communications, Inc provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally. The company offers private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless Internet access services; managed equipment, security, and hosting services; and voice services consisting of session initiation protocol trunking and hosted private branch exchange services.

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