Informatica (NYSE:INFA) Reaches New 52-Week Low After Earnings Miss

Informatica Inc. (NYSE:INFA) reached a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $16.38 and last traded at $17.30, with a volume of 2772411 shares traded. The stock had previously closed at $25.17.

The technology company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.17). Informatica had a net margin of 3.89% and a return on equity of 5.29%.

Informatica announced that its board has authorized a share repurchase program on Wednesday, October 30th that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the technology company to buy up to 5.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Bank of America lowered Informatica from a “buy” rating to a “neutral” rating in a research note on Friday. Guggenheim reiterated a “buy” rating and issued a $37.00 target price on shares of Informatica in a research note on Friday, January 31st. Truist Financial started coverage on Informatica in a research note on Thursday, December 12th. They issued a “buy” rating and a $34.00 target price on the stock. Royal Bank of Canada lowered Informatica from an “outperform” rating to a “sector perform” rating and cut their price target for the company from $35.00 to $19.00 in a research note on Friday. Finally, UBS Group raised their price target on Informatica from $27.00 to $30.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Nine investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $27.92.

Insider Activity at Informatica

In related news, EVP John Arthur Schweitzer sold 10,734 shares of the firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $27.05, for a total transaction of $290,354.70. Following the sale, the executive vice president now owns 353,778 shares of the company’s stock, valued at $9,569,694.90. This trade represents a 2.94 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Mark Pellowski sold 10,035 shares of the firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $27.06, for a total value of $271,547.10. Following the completion of the sale, the chief accounting officer now directly owns 138,477 shares of the company’s stock, valued at approximately $3,747,187.62. This represents a 6.76 % decrease in their position. The disclosure for this sale can be found here. 48.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Informatica

Institutional investors have recently added to or reduced their stakes in the business. ORG Wealth Partners LLC acquired a new stake in Informatica in the fourth quarter worth about $32,000. Quarry LP acquired a new stake in Informatica in the third quarter worth about $38,000. National Bank of Canada FI boosted its holdings in Informatica by 3,288.0% in the third quarter. National Bank of Canada FI now owns 1,694 shares of the technology company’s stock worth $43,000 after acquiring an additional 1,644 shares in the last quarter. New Age Alpha Advisors LLC acquired a new stake in Informatica in the fourth quarter worth about $43,000. Finally, FNY Investment Advisers LLC acquired a new stake in Informatica in the fourth quarter worth about $54,000. Institutional investors and hedge funds own 98.45% of the company’s stock.

Informatica Stock Performance

The company has a debt-to-equity ratio of 0.75, a current ratio of 2.17 and a quick ratio of 2.17. The firm has a market cap of $5.32 billion, a price-to-earnings ratio of 83.24, a P/E/G ratio of 3.65 and a beta of 0.99. The firm has a fifty day simple moving average of $25.84 and a two-hundred day simple moving average of $25.50.

Informatica Company Profile

Informatica Inc develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. Its platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality and observability products to profile, cleanse, standardize, observe, and monitor data to deliver accurate, complete, and consistent data; and master data management products to create an authoritative single source of truth of business-critical data.