Zacks Investment Research Lowers Smart Global (NASDAQ:SGH) to Strong Sell

Smart Global (NASDAQ:SGH) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued 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 have also weighed in on the company. Roth Capital boosted their price objective on Smart Global from $30.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, July 19th. Deutsche Bank reaffirmed a “buy” rating and issued a $30.00 price target (down previously from $36.00) on shares of Smart Global in a research note on Friday, October 4th. They noted that the move was a valuation call. ValuEngine raised Smart Global from a “sell” rating to a “hold” rating in a research note on Thursday, July 11th. TheStreet raised Smart Global from a “d+” rating to a “c” rating in a research note on Monday, July 29th. Finally, Barclays upped their price target on Smart Global from $24.00 to $30.00 and gave the company an “overweight” rating in a research note on Wednesday, July 10th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and six have given a buy rating to the company’s stock. Smart Global presently has a consensus rating of “Buy” and a consensus target price of $35.83.

NASDAQ SGH traded down $0.05 on Thursday, reaching $27.53. 240,233 shares of the company were exchanged, compared to its average volume of 677,682. The business’s fifty day moving average price is $28.43 and its 200 day moving average price is $24.61. The stock has a market capitalization of $634.96 million, a P/E ratio of 10.75, a price-to-earnings-growth ratio of 0.75 and a beta of 1.26. The company has a current ratio of 1.92, a quick ratio of 1.46 and a debt-to-equity ratio of 0.67. Smart Global has a fifty-two week low of $16.94 and a fifty-two week high of $35.10.

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

In related news, SVP Kiwan Kim sold 7,084 shares of the stock in a transaction dated Tuesday, July 30th. The stock was sold at an average price of $31.77, for a total transaction of $225,058.68. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Stephen C. Dow bought 17,059 shares of the firm’s stock in a transaction that occurred on Wednesday, July 17th. The shares were purchased at an average cost of $31.49 per share, for a total transaction of $537,187.91. The disclosure for this purchase can be found here. In the last ninety days, insiders sold 11,551 shares of company stock worth $357,998. Corporate insiders own 4.20% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of SGH. Meadow Creek Investment Management LLC lifted its stake in Smart Global by 45.6% during the 2nd quarter. Meadow Creek Investment Management LLC now owns 2,400 shares of the company’s stock worth $55,000 after acquiring an additional 752 shares in the last quarter. Neuburgh Advisers LLC lifted its stake in Smart Global by 45.6% during the 2nd quarter. Neuburgh Advisers LLC now owns 3,300 shares of the company’s stock worth $76,000 after acquiring an additional 1,034 shares in the last quarter. Aperio Group LLC acquired a new position in Smart Global during the 2nd quarter worth about $93,000. Tyers Asset Management LLC lifted its stake in Smart Global by 45.6% during the 2nd quarter. Tyers Asset Management LLC now owns 4,200 shares of the company’s stock worth $97,000 after acquiring an additional 1,316 shares in the last quarter. Finally, Riverhead Capital Management LLC lifted its stake in Smart Global by 42.9% during the 2nd quarter. Riverhead Capital Management LLC now owns 5,000 shares of the company’s stock worth $115,000 after acquiring an additional 1,500 shares in the last quarter. 94.54% of the stock is currently owned by hedge funds and other institutional investors.

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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