Trade Report: The Zacks Investment Research Downgrade ShoreTel Inc. (SHOR) to Sell

The Zacks Investment Research Downgrade ShoreTel Inc. (SHOR) to Sell

ShoreTel Inc. (NASDAQ:SHOR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.

According to Zacks, “ShoreTel is a leading provider of enterprise IP telephony solutions. ShoreTel voice systems provide customers with a number of key benefits, including ease of use, manageability and lower total cost of ownership than alternative solutions. ShoreTel’s distributed software architecture and switched-based hardware platform extend enterprise-class voice services to every office and outpost, keeping employees fully connected wherever they go. ShoreTel has achieved broad industry recognition for its technology and high customer satisfaction. For the last four years, IT executives surveyed by Nemertes Research, an independent research firm, have rated ShoreTel highest in customer satisfaction among leading enterprise telecommunications systems providers. A select, worldwide group of channel partners provide service and support. ShoreTel is headquartered in Sunnyvale, California, and has regional offices in the United Kingdom, Sydney, Australia and Munich, Germany. “

Separately, William Blair reissued a “buy” rating on shares of ShoreTel in a report on Monday, October 31st.

ShoreTel (NASDAQ:SHOR) traded up 4.35% during midday trading on Wednesday, hitting $7.20. 94,105 shares of the company were exchanged. ShoreTel has a 1-year low of $5.83 and a 1-year high of $10.56. The stock has a 50 day moving average of $7.02 and a 200 day moving average of $7.26. The firm’s market capitalization is $489.20 million.

ShoreTel (NASDAQ:SHOR) last announced its quarterly earnings results on Thursday, October 27th. The company reported $0.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.06. The business had revenue of $86.30 million for the quarter, compared to analyst estimates of $89.04 million. ShoreTel had a negative net margin of 3.52% and a negative return on equity of 0.83%. The company’s revenue was down 4.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.09 EPS.

In other news, VP Eugenia Corrales sold 7,040 shares of ShoreTel stock in a transaction dated Monday, November 7th. The shares were sold at an average price of $6.49, for a total transaction of $45,689.60. Following the sale, the vice president now owns 1,109 shares of the company’s stock, valued at approximately $7,197.41. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 4.00% of the company’s stock.

Several large investors have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD raised its stake in shares of ShoreTel by 8.4% in the third quarter. Price T Rowe Associates Inc. MD now owns 1,804,242 shares of the company’s stock worth $14,434,000 after buying an additional 139,560 shares during the last quarter. Empire Capital Management L.L.C. raised its stake in shares of ShoreTel by 68.1% in the third quarter. Empire Capital Management L.L.C. now owns 210,067 shares of the company’s stock worth $1,681,000 after buying an additional 85,067 shares during the last quarter. Penn Capital Management Co. Inc. raised its stake in shares of ShoreTel by 40.1% in the third quarter. Penn Capital Management Co. Inc. now owns 2,317,757 shares of the company’s stock worth $18,546,000 after buying an additional 663,344 shares during the last quarter. Verition Fund Management LLC bought a new stake in shares of ShoreTel during the third quarter worth $1,716,000. Finally, Picton Mahoney Asset Management bought a new stake in shares of ShoreTel during the third quarter worth $1,607,000. 90.32% of the stock is currently owned by hedge funds and other institutional investors.

About ShoreTel

Shoretel, Inc (ShoreTel) is engaged in the design, development, marketing and sale of business communication solutions. The Company provides business communication solutions, including integrated voice, video, data and mobile applications based on Internet protocol (IP) technologies. It is focused on the small and medium sized businesses (less than 5,000 users), with a Unified Communications platform.

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