Smart Global (NASDAQ:SGH) Cut to “Strong Sell” at Zacks Investment Research

Smart Global (NASDAQ:SGH) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Thursday, Zacks.com reports.

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. “

A number of other equities analysts also recently issued reports on the company. Roth Capital raised their price objective on Smart Global from $30.00 to $40.00 and gave the stock a “buy” rating in a research report on Friday, July 19th. ValuEngine upgraded Smart Global from a “sell” rating to a “hold” rating in a report on Thursday, July 11th. Deutsche Bank reiterated a “buy” rating and issued a $30.00 target price (down from $36.00) on shares of Smart Global in a report on Friday, October 4th. They noted that the move was a valuation call. Needham & Company LLC lowered their target price on Smart Global from $40.00 to $35.00 and set a “buy” rating for the company in a report on Friday, October 4th. Finally, BidaskClub upgraded Smart Global from a “hold” rating to a “buy” rating in a report on Thursday, September 12th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the company’s stock. The company has an average rating of “Buy” and an average price target of $35.83.

NASDAQ:SGH traded up $0.36 during trading hours on Thursday, reaching $27.87. 1,016 shares of the stock were exchanged, compared to its average volume of 657,762. Smart Global has a twelve month low of $16.94 and a twelve month high of $35.10. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.92 and a quick ratio of 1.46. The firm has a 50 day moving average of $28.44 and a 200 day moving average of $24.57. The stock has a market cap of $637.59 million, a PE ratio of 10.85, a PEG ratio of 0.56 and a beta of 1.26.

Smart Global (NASDAQ:SGH) last posted its quarterly earnings results on Thursday, October 3rd. The company reported $0.50 earnings per share for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.03). The business had revenue of $278.40 million during the quarter, compared to the consensus estimate of $285.05 million. Smart Global had a net margin of 4.24% and a return on equity of 25.19%. The firm’s revenue was down 25.6% on a year-over-year basis. During the same quarter last year, the company posted $1.72 EPS. Equities research analysts anticipate that Smart Global will post 2.45 earnings per share for the current year.

In other Smart Global news, VP Bruce M. Goldberg sold 2,267 shares of the business’s stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $31.75, for a total value of $71,977.25. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Bruce M. Goldberg sold 2,200 shares of the business’s stock in a transaction on Monday, August 12th. The stock was sold at an average price of $27.71, for a total value of $60,962.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 11,551 shares of company stock worth $357,998. 4.20% of the stock is owned by insiders.

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. raised its stake in shares of Smart Global by 2.1% in the second quarter. BlackRock Inc. now owns 1,882,009 shares of the company’s stock valued at $43,267,000 after buying an additional 38,903 shares during the period. Russell Investments Group Ltd. raised its stake in shares of Smart Global by 8.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 785,493 shares of the company’s stock valued at $18,048,000 after purchasing an additional 59,393 shares during the period. Brown Advisory Inc. raised its stake in shares of Smart Global by 65.0% during the 2nd quarter. Brown Advisory Inc. now owns 714,916 shares of the company’s stock valued at $16,435,000 after purchasing an additional 281,511 shares during the period. FMR LLC bought a new stake in shares of Smart Global during the 1st quarter valued at $7,757,000. Finally, AQR Capital Management LLC raised its stake in shares of Smart Global by 80.6% during the 2nd quarter. AQR Capital Management LLC now owns 290,579 shares of the company’s stock valued at $6,680,000 after purchasing an additional 129,658 shares during the period. 94.54% of the stock is currently owned by institutional investors and hedge funds.

About Smart Global

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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