Equinix Inc. (NASDAQ:EQIX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “The data center major, Equinix posted strong third-quarter 2016 results, wherein both the top and bottom line not only came ahead of the Zacks Consensus Estimate but also witnessed significant improvement from the year-ago quarter. Revenues were driven mainly by strong demand for cloud services by corporations and benefits of the recently acquired Telecity and Bit-isle businesses. Growth across geographies and business segments also had a positive impact on the top line. Moreover, an upbeat guidance for the full year was encouraging. The company strives to enhance customer experience through the Equinix Customer One program. Moreover, Equinix’s recurring revenue model and current expansion plans are impressive. However, intensifying competition, a highly leveraged balance sheet and industry consolidation remain its near-term headwinds.”
A number of other analysts have also recently weighed in on the stock. Pacific Crest reiterated a “buy” rating on shares of Equinix in a research note on Wednesday, August 24th. Royal Bank Of Canada raised their target price on shares of Equinix from $382.00 to $429.00 and gave the stock an “outperform” rating in a research note on Monday, August 8th. Jefferies Group cut shares of Equinix from a “buy” rating to a “hold” rating and raised their target price for the stock from $380.00 to $400.00 in a research note on Friday, July 15th. They noted that the move was a valuation call. Oppenheimer Holdings Inc. upgraded shares of Equinix from a “market perform” rating to an “outperform” rating and set a $420.00 target price for the company in a research note on Tuesday, September 6th. Finally, SunTrust Banks Inc. began coverage on shares of Equinix in a research note on Thursday, July 21st. They issued a “buy” rating and a $445.00 target price for the company. Eight research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $401.97.
Equinix (NASDAQ:EQIX) traded up 0.46% during trading on Tuesday, reaching $339.76. 235,573 shares of the company were exchanged. Equinix has a 12 month low of $255.45 and a 12 month high of $391.07. The stock has a 50 day moving average price of $350.36 and a 200 day moving average price of $363.42.
Equinix (NASDAQ:EQIX) last issued its quarterly earnings results on Wednesday, November 2nd. The company reported $3.95 earnings per share for the quarter, topping the Zacks’ consensus estimate of $3.85 by $0.10. The firm earned $924.68 million during the quarter, compared to analysts’ expectations of $919.73 million. Equinix had a net margin of 2.23% and a return on equity of 3.68%. Equinix’s quarterly revenue was up 34.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.71 EPS. Equities research analysts forecast that Equinix will post $14.95 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 14th. Stockholders of record on Wednesday, November 16th will be issued a dividend of $1.75 per share. The ex-dividend date of this dividend is Monday, November 14th. This represents a $7.00 dividend on an annualized basis and a dividend yield of 2.06%. Equinix’s dividend payout ratio (DPR) is presently 648.15%.
In other news, Director Christopher B. Paisley sold 500 shares of Equinix stock in a transaction dated Monday, November 21st. The shares were sold at an average price of $334.35, for a total transaction of $167,175.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Charles J. Meyers sold 2,343 shares of Equinix stock in a transaction dated Friday, September 2nd. The stock was sold at an average price of $369.64, for a total transaction of $866,066.52. Following the sale, the chief operating officer now owns 3,988 shares of the company’s stock, valued at $1,474,124.32. The disclosure for this sale can be found here. Insiders own 0.69% of the company’s stock.
Large investors have recently modified their holdings of the company. Tower Research Capital LLC TRC bought a new stake in Equinix during the second quarter valued at about $104,000. Integrated Investment Consultants LLC boosted its stake in Equinix by 5.6% in the second quarter. Integrated Investment Consultants LLC now owns 284 shares of the company’s stock valued at $110,000 after buying an additional 15 shares in the last quarter. IFP Advisors Inc boosted its stake in Equinix by 9.0% in the second quarter. IFP Advisors Inc now owns 338 shares of the company’s stock valued at $131,000 after buying an additional 28 shares in the last quarter. Creative Planning boosted its stake in Equinix by 95.0% in the third quarter. Creative Planning now owns 351 shares of the company’s stock valued at $126,000 after buying an additional 171 shares in the last quarter. Finally, AXA bought a new stake in Equinix during the second quarter valued at about $155,000. Institutional investors and hedge funds own 98.11% of the company’s stock.
Equinix Company Profile
Equinix, Inc (Equinix) connects businesses with partners and customers worldwide through a global platform of data centers. The Company connects approximately 4000 customers, across the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific. Platform Equinix combines international business exchange (IBX) data centers, a global footprint and ecosystems.