Switch (SWCH) Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Switch (NYSE:SWCH) from a strong-buy rating to a hold rating in a report released on Wednesday morning, Zacks.com reports.

According to Zacks, “Switch, Inc. is a technology infrastructure company. It designs, constructs and operates hyperscale data centers. The Company is developer and operator of the SUPERNAP, data center facilities, and provides colocation, telecommunications, cloud services and content ecosystems. Switch, Inc. is based in LAS VEGAS, United States. “

SWCH has been the topic of several other research reports. JPMorgan Chase & Co. boosted their price target on shares of Switch from $10.00 to $12.00 in a research report on Friday, May 10th. BMO Capital Markets reissued a buy rating and issued a $10.50 price target on shares of Switch in a research report on Tuesday, March 12th. Five research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Switch presently has an average rating of Buy and an average target price of $13.45.

SWCH stock traded down $0.05 during mid-day trading on Wednesday, hitting $12.20. The company had a trading volume of 6,489 shares, compared to its average volume of 1,195,049. The firm has a market cap of $2.85 billion, a price-to-earnings ratio of 136.11, a P/E/G ratio of 5.87 and a beta of 1.10. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.44 and a current ratio of 1.47. Switch has a 12 month low of $6.39 and a 12 month high of $14.37.

Switch (NYSE:SWCH) last announced its quarterly earnings data on Wednesday, May 8th. The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.04 by ($0.02). Switch had a return on equity of 1.27% and a net margin of 0.98%. The company had revenue of $107.03 million during the quarter, compared to the consensus estimate of $105.43 million. Analysts forecast that Switch will post 0.17 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 4th. Stockholders of record on Wednesday, May 22nd will be issued a $0.0294 dividend. The ex-dividend date of this dividend is Tuesday, May 21st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.96%. Switch’s payout ratio is 133.33%.

In other news, major shareholder Scott Russell Gragson sold 11,800 shares of Switch stock in a transaction that occurred on Wednesday, May 1st. The shares were sold at an average price of $11.00, for a total value of $129,800.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Donald D. Snyder sold 300,000 shares of the business’s stock in a transaction that occurred on Monday, March 18th. The stock was sold at an average price of $10.42, for a total transaction of $3,126,000.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 554,350 shares of company stock valued at $5,921,819. Company insiders own 28.39% of the company’s stock.

Hedge funds have recently bought and sold shares of the stock. Assetmark Inc. lifted its position in Switch by 56.2% in the 1st quarter. Assetmark Inc. now owns 7,140 shares of the company’s stock valued at $74,000 after acquiring an additional 2,570 shares in the last quarter. NumerixS Investment Technologies Inc bought a new stake in Switch during the 1st quarter worth about $90,000. BNP Paribas Arbitrage SA lifted its position in Switch by 328.6% during the 1st quarter. BNP Paribas Arbitrage SA now owns 9,121 shares of the company’s stock worth $94,000 after buying an additional 6,993 shares in the last quarter. ExodusPoint Capital Management LP bought a new stake in Switch during the 1st quarter worth about $120,000. Finally, WealthPLAN Partners LLC bought a new stake in Switch during the 4th quarter worth about $108,000. Hedge funds and other institutional investors own 19.17% of the company’s stock.

About Switch

Switch, Inc, through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States. It develops and operates data centers in Nevada and Michigan. The company also serves cloud and managed service providers, financial institutions, IT and software providers, government agencies, network and telecommunications providers, and others that conduct critical business on the Internet.

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