Mellanox Technologies (NASDAQ:MLNX) Downgraded by Zacks Investment Research

Mellanox Technologies (NASDAQ:MLNX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday, Zacks.com reports. They presently have a $125.00 price objective on the semiconductor producer’s stock. Zacks Investment Research‘s target price suggests a potential upside of 9.12% from the company’s previous close.

According to Zacks, “Mellanox is benefiting from robust demand for Ethernet adapters, switches and LinkX cables. Solid demand of its Gigabit EDR solutions in AI, HPC, ML, database, and storage bode well. Further, strong adoption of Mellanox’s InfiniBand solutions is a key catalyst. The company has also won several contracts from the likes of NetApp and NASA Ames Research Center, which reflects sturdy demand for its solutions. Notably, NVIDIA inked a definitive agreement to acquire Mellanox for a total enterprise value of around $6.9 billion. The buyout is slated to close by the end of calendar 2019. However, exposure to foreign currency and significant customer concentration remain headwinds. Notably, shares of Mellanox have underperformed the industry in the past year.”

MLNX has been the topic of several other research reports. BidaskClub raised shares of Mellanox Technologies from a “strong sell” rating to a “sell” rating in a report on Wednesday, November 27th. ValuEngine downgraded Mellanox Technologies from a “hold” rating to a “sell” rating in a research report on Wednesday, August 28th. Three analysts have rated the stock with a sell rating and seven have given a hold rating to the company. The stock presently has an average rating of “Hold” and an average target price of $124.19.

NASDAQ:MLNX traded up $0.55 during mid-day trading on Thursday, hitting $114.55. 9,322 shares of the stock traded hands, compared to its average volume of 824,287. The business’s 50-day moving average price is $113.30 and its 200 day moving average price is $111.20. The company has a market cap of $6.33 billion, a PE ratio of 29.77, a price-to-earnings-growth ratio of 1.05 and a beta of 0.50. Mellanox Technologies has a 12-month low of $78.86 and a 12-month high of $121.13.

Mellanox Technologies (NASDAQ:MLNX) last posted its earnings results on Wednesday, October 30th. The semiconductor producer reported $1.69 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.58 by $0.11. Mellanox Technologies had a net margin of 14.03% and a return on equity of 18.84%. The business had revenue of $335.30 million for the quarter, compared to analysts’ expectations of $315.59 million. During the same period in the prior year, the company posted $1.33 EPS. The business’s revenue for the quarter was up 20.1% compared to the same quarter last year. As a group, sell-side analysts predict that Mellanox Technologies will post 5.06 EPS for the current year.

A number of hedge funds and other institutional investors have recently made changes to their positions in MLNX. First Trust Advisors LP lifted its position in shares of Mellanox Technologies by 650.7% in the third quarter. First Trust Advisors LP now owns 17,881 shares of the semiconductor producer’s stock worth $1,960,000 after buying an additional 15,499 shares during the last quarter. GAM Holding AG raised its stake in Mellanox Technologies by 35.9% in the second quarter. GAM Holding AG now owns 21,200 shares of the semiconductor producer’s stock valued at $2,346,000 after purchasing an additional 5,600 shares in the last quarter. Virtu Financial LLC lifted its position in Mellanox Technologies by 431.6% during the third quarter. Virtu Financial LLC now owns 14,753 shares of the semiconductor producer’s stock valued at $1,617,000 after purchasing an additional 11,978 shares during the last quarter. Renaissance Technologies LLC lifted its position in Mellanox Technologies by 0.9% during the second quarter. Renaissance Technologies LLC now owns 1,221,383 shares of the semiconductor producer’s stock valued at $135,170,000 after purchasing an additional 10,600 shares during the last quarter. Finally, GABELLI & Co INVESTMENT ADVISERS INC. grew its stake in Mellanox Technologies by 2.8% in the 3rd quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 270,959 shares of the semiconductor producer’s stock worth $29,694,000 after buying an additional 7,500 shares in the last quarter. 76.03% of the stock is currently owned by institutional investors and hedge funds.

Mellanox Technologies Company Profile

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, markets, and sells interconnect products and solutions. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. The company offers InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; and Ethernet solutions, such as Ethernet switch products and Ethernet adapters for use in enterprise data center, high-performance computing, embedded environments, hyperscale, Web 2.0, and cloud data centers.

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