Zacks Investment Research Lowers Tech Data (TECD) to Hold

Zacks Investment Research downgraded shares of Tech Data (NASDAQ:TECD) from a buy rating to a hold rating in a report released on Friday morning.

According to Zacks, “Shares have not only increased but also outperformed the industry in the past three months. Although second-quarter fiscal 2019 earnings missed the Zacks Consensus Estimate, investors were encouraged by the top-line beat. In fact, sales registered year-on-year growth in the past six quarters. Further, the company’s top line growth was mainly driven by robust demand for Endpoint Solutions. Also, revenues in the company’s key geographical regions were sturdy. Moreover, Tech Data is working towards being a more flexible and cost-effective organization with the launch of Global Business Optimization Program in the quarter. The increasing demand for data center systems, cloud and mobility products also bode well.  However, the company’s margins have been marred by competitive pricing and execution challenges. Apart from competitive conditions, gross margin in the second quarter declined due to unfavorable product mix. “

Several other research firms have also recently issued reports on TECD. BidaskClub upgraded shares of Tech Data from a buy rating to a strong-buy rating in a report on Tuesday, January 15th. Needham & Company LLC increased their target price on shares of Tech Data to $110.00 and gave the company a buy rating in a research note on Friday, November 30th. ValuEngine raised shares of Tech Data from a sell rating to a hold rating in a research note on Friday, November 30th. Finally, TheStreet raised shares of Tech Data from a c+ rating to a b- rating in a research note on Thursday, December 13th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the stock. The company has a consensus rating of Buy and an average price target of $103.57.

Tech Data stock opened at $98.72 on Friday. The company has a quick ratio of 0.85, a current ratio of 1.24 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $3.68 billion, a PE ratio of 10.84, a P/E/G ratio of 0.98 and a beta of 0.96. Tech Data has a 12-month low of $66.93 and a 12-month high of $108.62.

Tech Data (NASDAQ:TECD) last posted its quarterly earnings data on Thursday, November 29th. The company reported $3.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.17 by $0.85. The business had revenue of $9.34 billion during the quarter, compared to analysts’ expectations of $8.92 billion. Tech Data had a net margin of 0.59% and a return on equity of 13.92%. The business’s revenue was up 10.6% on a year-over-year basis. During the same period last year, the firm posted $2.00 earnings per share. As a group, sell-side analysts anticipate that Tech Data will post 10.94 EPS for the current fiscal year.

In related news, VP Beth E. Simonetti sold 592 shares of the stock in a transaction that occurred on Friday, January 11th. The shares were sold at an average price of $91.98, for a total transaction of $54,452.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP John A. Tonnison sold 5,000 shares of the stock in a transaction that occurred on Tuesday, December 11th. The shares were sold at an average price of $87.04, for a total transaction of $435,200.00. Following the sale, the vice president now directly owns 30,423 shares of the company’s stock, valued at $2,648,017.92. The disclosure for this sale can be found here. Over the last three months, insiders have sold 18,307 shares of company stock valued at $1,646,157. Company insiders own 1.10% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in TECD. AdvisorNet Financial Inc lifted its position in shares of Tech Data by 28.9% in the 4th quarter. AdvisorNet Financial Inc now owns 1,114 shares of the company’s stock valued at $91,000 after acquiring an additional 250 shares in the last quarter. BlackRock Inc. lifted its position in shares of Tech Data by 2.1% in the 4th quarter. BlackRock Inc. now owns 4,472,444 shares of the company’s stock valued at $365,890,000 after acquiring an additional 93,303 shares in the last quarter. Robeco Institutional Asset Management B.V. purchased a new stake in shares of Tech Data in the 4th quarter valued at approximately $472,000. First Trust Advisors LP lifted its position in shares of Tech Data by 53.7% in the 4th quarter. First Trust Advisors LP now owns 45,376 shares of the company’s stock valued at $3,712,000 after acquiring an additional 15,847 shares in the last quarter. Finally, Greenleaf Trust purchased a new stake in shares of Tech Data in the 4th quarter valued at approximately $231,000. 99.22% of the stock is owned by institutional investors and hedge funds.

Tech Data Company Profile

Tech Data Corporation engages in the wholesale distribution of technology products. It offers endpoint portfolio solutions, including PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics; and advanced portfolio solutions, such as storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions.

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