Switch (NYSE:SWCH) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Switch (NYSE:SWCH) from a buy rating to a hold rating in a research report report published on Tuesday, 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. “

A number of other analysts have also weighed in on SWCH. JPMorgan Chase & Co. upped their target price on shares of Switch from $10.00 to $12.00 in a report on Friday, May 10th. ValuEngine raised shares of Switch from a hold rating to a buy rating in a report on Monday, May 20th. Four research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $12.11.

Switch stock opened at $15.15 on Tuesday. The firm’s 50 day simple moving average is $13.69 and its 200 day simple moving average is $11.47. The company has a current ratio of 0.97, a quick ratio of 1.47 and a debt-to-equity ratio of 0.87. The firm has a market capitalization of $3.71 billion, a PE ratio of 168.33, a price-to-earnings-growth ratio of 10.22 and a beta of 0.68. Switch has a 1-year low of $6.39 and a 1-year high of $15.56.

Switch (NYSE:SWCH) last posted its earnings results on Wednesday, August 7th. The company reported $0.04 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.06 by ($0.02). The firm had revenue of $111.59 million for the quarter, compared to the consensus estimate of $109.47 million. Switch had a return on equity of 2.60% and a net margin of 1.05%. The business’s revenue was up 9.2% on a year-over-year basis. During the same period last year, the company posted $0.02 EPS. Research analysts forecast that Switch will post 0.13 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Monday, August 19th will be issued a $0.029 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.77%. The ex-dividend date is Friday, August 16th. Switch’s payout ratio is 133.33%.

In other news, major shareholder William Gonsalves Balelo sold 27,276 shares of the stock in a transaction on Monday, June 17th. The shares were sold at an average price of $12.97, for a total value of $353,769.72. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 28.39% of the stock is owned by corporate insiders.

Several large investors have recently modified their holdings of SWCH. Legal & General Group Plc grew its holdings in shares of Switch by 15,357.4% during the 4th quarter. Legal & General Group Plc now owns 132,934 shares of the company’s stock valued at $931,000 after purchasing an additional 132,074 shares during the last quarter. Bank of Montreal Can grew its holdings in shares of Switch by 243.2% during the 1st quarter. Bank of Montreal Can now owns 125,875 shares of the company’s stock valued at $1,298,000 after purchasing an additional 89,202 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Switch by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 358,217 shares of the company’s stock valued at $2,507,000 after purchasing an additional 9,507 shares during the last quarter. First Trust Advisors LP bought a new position in shares of Switch during the 2nd quarter valued at $23,830,000. Finally, Two Sigma Advisers LP bought a new position in shares of Switch during the 4th quarter valued at $213,000. 21.06% of the stock is currently owned by hedge funds and other institutional investors.

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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