Zacks Investment Research lowered shares of Equinix (NASDAQ:EQIX) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Equinix recently reported better-than-expected Q4 results. Moreover, Equinix’s impressive guidance for Q1 and 2018 makes us optimistic about its future prospects. The company has been witnessing strong year-over-year revenue growth for the past several quarters, mainly driven by high demand for Equinix’s cloud services by corporations. Additionally, the company’s recurring revenue model and current expansion plans are encouraging. In April 2017, it announced a billion dollar aggressive expansion plan, which includes unveiling data centers, acquisitions and expansion of existing facilities as well. The company’s diligent IBX expansion strategy will likely fortify its global footprint in the data-center space and bring in additional revenues over the long run. Nonetheless, we are concerned about the company’s growing debt burden, which will adversely affect the operating results as interest expense would go up.”
A number of other research firms also recently commented on EQIX. Berenberg Bank reissued a buy rating and set a $550.00 target price on shares of Equinix in a research report on Friday, November 3rd. Cowen reaffirmed a buy rating and issued a $482.00 price objective on shares of Equinix in a research report on Friday, November 10th. JPMorgan Chase & Co. raised shares of Equinix from a neutral rating to an overweight rating and set a $550.00 price objective on the stock in a research report on Thursday, November 2nd. Oppenheimer lifted their price objective on shares of Equinix from $472.00 to $500.00 and gave the stock an outperform rating in a research report on Thursday, November 2nd. Finally, Credit Suisse Group reaffirmed an outperform rating and issued a $515.00 price objective (up previously from $510.00) on shares of Equinix in a research report on Thursday, November 2nd. One research analyst has rated the stock with a sell rating, three have given a hold rating and twenty have assigned a buy rating to the company. The company has an average rating of Buy and a consensus target price of $499.00.
Equinix (NASDAQ:EQIX) last posted its earnings results on Wednesday, February 14th. The financial services provider reported $0.82 EPS for the quarter, missing analysts’ consensus estimates of $3.87 by ($3.05). The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.19 billion. Equinix had a net margin of 5.33% and a return on equity of 6.54%. The company’s revenue for the quarter was up 27.3% on a year-over-year basis. During the same period last year, the business posted $4.08 EPS. equities research analysts expect that Equinix will post 18.73 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 21st. Investors of record on Monday, February 26th will be paid a $2.28 dividend. The ex-dividend date is Friday, February 23rd. This is a boost from Equinix’s previous quarterly dividend of $2.00. This represents a $9.12 dividend on an annualized basis and a yield of 2.31%. Equinix’s dividend payout ratio (DPR) is 267.56%.
In related news, CFO Keith D. Taylor sold 2,028 shares of Equinix stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $401.92, for a total value of $815,093.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Keith D. Taylor sold 2,000 shares of Equinix stock in a transaction that occurred on Monday, November 27th. The stock was sold at an average price of $476.81, for a total transaction of $953,620.00. Following the completion of the sale, the chief financial officer now owns 27,996 shares of the company’s stock, valued at $13,348,772.76. The disclosure for this sale can be found here. Insiders sold a total of 27,745 shares of company stock valued at $12,259,835 over the last quarter. 0.58% of the stock is owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Whittier Trust Co. boosted its stake in Equinix by 191.5% in the 4th quarter. Whittier Trust Co. now owns 239 shares of the financial services provider’s stock worth $108,000 after purchasing an additional 157 shares in the last quarter. Zions Bancorporation boosted its stake in Equinix by 2,550.0% in the 3rd quarter. Zions Bancorporation now owns 265 shares of the financial services provider’s stock worth $118,000 after purchasing an additional 255 shares in the last quarter. SeaCrest Wealth Management LLC acquired a new stake in Equinix in the 4th quarter worth approximately $121,000. Truewealth LLC acquired a new stake in Equinix during the 4th quarter valued at approximately $137,000. Finally, Amica Retiree Medical Trust acquired a new stake in Equinix during the 3rd quarter valued at approximately $188,000. Institutional investors own 94.81% of the company’s stock.
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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.
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