Smart Global (NASDAQ:SGH) Cut to “Strong Sell” at Zacks Investment Research

Smart Global (NASDAQ:SGH) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors 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. “

Several other brokerages have also recently weighed in on SGH. Deutsche Bank restated a “buy” rating and set a $30.00 target price (down from $36.00) on shares of Smart Global in a report on Friday, October 4th. They noted that the move was a valuation call. Barclays upped their price target on Smart Global from $24.00 to $30.00 and gave the company an “overweight” rating in a research report on Wednesday, July 10th. ValuEngine raised Smart Global from a “sell” rating to a “hold” rating in a research report on Thursday, July 11th. Roth Capital upped their price target on Smart Global from $30.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, July 19th. Finally, Needham & Company LLC lowered their price target on Smart Global from $40.00 to $35.00 and set a “buy” rating for the company in a research report on Friday, October 4th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $35.83.



SGH stock traded up $0.36 during trading on Thursday, hitting $27.87. 1,016 shares of the company traded hands, compared to its average volume of 657,762. The firm has a market capitalization of $637.59 million, a PE ratio of 10.85, a P/E/G ratio of 0.56 and a beta of 1.26. Smart Global has a 1 year low of $16.94 and a 1 year high of $35.10. The company has a 50-day moving average of $28.44 and a 200-day moving average of $24.57. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.46 and a current ratio of 1.92.

Smart Global (NASDAQ:SGH) last issued its earnings results on Thursday, October 3rd. The company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.03). The company had revenue of $278.40 million for the quarter, compared to analysts’ expectations of $285.05 million. Smart Global had a net margin of 4.24% and a return on equity of 25.19%. The company’s revenue was down 25.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.72 earnings per share. Sell-side analysts expect that Smart Global will post 2.45 EPS for the current year.

In other news, VP Bruce M. Goldberg sold 2,200 shares of the stock in a transaction that occurred on Monday, August 12th. The stock was sold at an average price of $27.71, for a total value of $60,962.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Kiwan Kim sold 7,084 shares of the stock in a transaction that occurred on Tuesday, July 30th. The stock was sold at an average price of $31.77, for a total value of $225,058.68. The disclosure for this sale can be found here. Insiders have sold a total of 11,551 shares of company stock valued at $357,998 in the last ninety days. 4.20% of the stock is currently owned by corporate insiders.

Several large investors have recently made changes to their positions in the company. State of Alaska Department of Revenue raised its position in shares of Smart Global by 135.8% in the 3rd quarter. State of Alaska Department of Revenue now owns 10,102 shares of the company’s stock worth $257,000 after acquiring an additional 5,817 shares in the last quarter. Macquarie Group Ltd. bought a new position in Smart Global during the 2nd quarter valued at approximately $306,000. Mackenzie Financial Corp increased its position in Smart Global by 33.0% during the 2nd quarter. Mackenzie Financial Corp now owns 152,083 shares of the company’s stock valued at $3,496,000 after buying an additional 37,700 shares in the last quarter. D. E. Shaw & Co. Inc. bought a new position in Smart Global during the 2nd quarter valued at approximately $661,000. Finally, Jefferies Group LLC bought a new position in Smart Global during the 2nd quarter valued at approximately $208,000. 94.54% of the stock is owned by hedge funds and other institutional investors.

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.

Recommended Story: Asset Allocation

Get a free copy of the Zacks research report on Smart Global (SGH)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Smart Global (NASDAQ:SGH)

Receive News & Ratings for Smart Global Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Smart Global and related companies with MarketBeat.com's FREE daily email newsletter.