Short Interest in Smart Global Holdings Inc (SGH) Rises By 135.2%

Smart Global Holdings Inc (NASDAQ:SGH) was the recipient of a significant increase in short interest during the month of October. As of October 15th, there was short interest totalling 2,707,560 shares, an increase of 135.2% from the September 28th total of 1,151,035 shares. Approximately 22.2% of the shares of the stock are sold short. Based on an average daily volume of 1,630,777 shares, the days-to-cover ratio is currently 1.7 days.

Several equities research analysts recently commented on SGH shares. ValuEngine cut Smart Global from a “hold” rating to a “sell” rating in a report on Wednesday, October 3rd. Zacks Investment Research raised Smart Global from a “hold” rating to a “buy” rating and set a $32.00 target price for the company in a research note on Thursday, October 11th. BidaskClub raised Smart Global from a “sell” rating to a “hold” rating in a research note on Thursday, October 18th. Stifel Nicolaus raised their target price on Smart Global from $61.00 to $62.00 and gave the stock a “buy” rating in a research note on Friday, October 5th. Finally, Barclays cut their target price on Smart Global from $55.00 to $40.00 and set an “overweight” rating for the company in a research note on Tuesday, October 23rd. Two analysts have rated the stock with a sell rating and seven have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $50.57.

In related news, Director Mukesh Patel sold 39,339 shares of the stock in a transaction that occurred on Monday, October 15th. The stock was sold at an average price of $31.86, for a total value of $1,253,340.54. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Kiwan Kim sold 6,875 shares of the stock in a transaction that occurred on Monday, July 30th. The shares were sold at an average price of $30.97, for a total value of $212,918.75. The disclosure for this sale can be found here. In the last ninety days, insiders sold 156,259 shares of company stock valued at $4,967,825. Insiders own 6.90% of the company’s stock.



A number of hedge funds have recently bought and sold shares of SGH. Schwab Charles Investment Management Inc. increased its stake in Smart Global by 86.5% during the first quarter. Schwab Charles Investment Management Inc. now owns 50,546 shares of the company’s stock worth $2,520,000 after acquiring an additional 23,439 shares during the last quarter. Northern Trust Corp boosted its position in shares of Smart Global by 37.8% during the first quarter. Northern Trust Corp now owns 101,647 shares of the company’s stock worth $5,066,000 after buying an additional 27,889 shares during the period. BlackRock Inc. boosted its position in shares of Smart Global by 38.7% during the first quarter. BlackRock Inc. now owns 554,481 shares of the company’s stock worth $27,635,000 after buying an additional 154,757 shares during the period. Russell Investments Group Ltd. purchased a new position in shares of Smart Global during the first quarter worth $2,075,000. Finally, The Manufacturers Life Insurance Company boosted its position in shares of Smart Global by 43.5% during the first quarter. The Manufacturers Life Insurance Company now owns 7,475 shares of the company’s stock worth $372,000 after buying an additional 2,265 shares during the period. 83.11% of the stock is owned by institutional investors.

SGH stock opened at $26.76 on Friday. The company has a quick ratio of 1.13, a current ratio of 1.61 and a debt-to-equity ratio of 0.82. The firm has a market cap of $620.37 million, a price-to-earnings ratio of 4.46, a price-to-earnings-growth ratio of 0.28 and a beta of -0.43. Smart Global has a 52-week low of $26.05 and a 52-week high of $56.69.

Smart Global (NASDAQ:SGH) last posted its earnings results on Thursday, October 4th. The company reported $1.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.06. The company had revenue of $373.97 million during the quarter, compared to analysts’ expectations of $368.51 million. Smart Global had a return on equity of 100.35% and a net margin of 9.27%. The firm’s quarterly revenue was up 67.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.79 earnings per share. As a group, equities research analysts anticipate that Smart Global will post 6.61 earnings per share for the current fiscal year.

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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