j2 Global Inc. (JCOM) Cut to Strong Sell at Zacks Investment Research
According to Zacks, “J2 Global faces risks related to macroeconomic factors such as credit market weakness and high reliability on selected telecommunication carriers in each geographic network. A challenging economic environment might threaten the company’s performance considering it has a vast majority of credit-sensitive customers from lending and mortgage industries and other financial institutions. Additionally a high level of reliance on select telecommunication carriers might pose risks in future if any issues arise related to acquisition of local numbers. Though we are impressed by the company’s acquisition policy, the aforementioned risks continue to remain a concern.”
Other analysts have also recently issued research reports about the company. Citigroup Inc. restated a buy rating and set a $73.00 price objective on shares of j2 Global in a research note on Wednesday, August 17th. Robert W. Baird began coverage on j2 Global in a research report on Tuesday, August 30th. They set an outperform rating and a $83.00 price target on the stock. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company. j2 Global currently has a consensus rating of Buy and an average target price of $85.17.
j2 Global (NASDAQ:JCOM) opened at 65.82 on Tuesday. The firm has a market cap of $3.16 billion, a price-to-earnings ratio of 23.68 and a beta of 1.11. j2 Global has a 52-week low of $55.43 and a 52-week high of $84.15. The firm’s 50-day moving average price is $67.31 and its 200 day moving average price is $65.18.
j2 Global (NASDAQ:JCOM) last announced its quarterly earnings data on Wednesday, August 3rd. The company reported $1.21 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.15 by $0.06. j2 Global had a return on equity of 24.28% and a net margin of 17.16%. The firm had revenue of $211.80 million for the quarter, compared to analysts’ expectations of $206.41 million. During the same quarter in the prior year, the firm posted $0.99 earnings per share. j2 Global’s revenue for the quarter was up 20.3% compared to the same quarter last year. On average, equities research analysts forecast that j2 Global will post $4.90 EPS for the current year.
In related news, Director Stephen Ross sold 19,836 shares of the firm’s stock in a transaction that occurred on Tuesday, September 13th. The stock was sold at an average price of $67.84, for a total value of $1,345,674.24. Following the sale, the director now directly owns 28,107 shares in the company, valued at approximately $1,906,778.88. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Jeremy Rossen sold 1,014 shares of the firm’s stock in a transaction that occurred on Thursday, August 25th. The shares were sold at an average price of $67.01, for a total value of $67,948.14. Following the completion of the sale, the vice president now owns 24,708 shares in the company, valued at $1,655,683.08. The disclosure for this sale can be found here. 5.11% of the stock is owned by corporate insiders.
Hedge funds have recently bought and sold shares of the stock. FMR LLC boosted its stake in j2 Global by 4.5% in the second quarter. FMR LLC now owns 4,095,551 shares of the company’s stock valued at $258,716,000 after buying an additional 176,390 shares in the last quarter. Vanguard Group Inc. boosted its stake in j2 Global by 1.5% in the second quarter. Vanguard Group Inc. now owns 3,439,142 shares of the company’s stock valued at $217,250,000 after buying an additional 52,449 shares in the last quarter. BlackRock Fund Advisors boosted its stake in j2 Global by 1.3% in the second quarter. BlackRock Fund Advisors now owns 2,393,136 shares of the company’s stock valued at $151,174,000 after buying an additional 31,413 shares in the last quarter. TimesSquare Capital Management LLC boosted its stake in j2 Global by 17.2% in the second quarter. TimesSquare Capital Management LLC now owns 1,986,307 shares of the company’s stock valued at $125,475,000 after buying an additional 291,120 shares in the last quarter. Finally, State Street Corp boosted its stake in j2 Global by 1.6% in the first quarter. State Street Corp now owns 1,541,166 shares of the company’s stock valued at $94,903,000 after buying an additional 24,835 shares in the last quarter.
About j2 Global
j2 Global, Inc is a provider of services delivered through the Internet. The Company provides cloud services to businesses of all sizes, from individuals to enterprises. The Company operates in two segments: Business Cloud Services and Digital Media. The Company’s Digital Media business segment consists of the Web properties and business operations of Ziff Davis, Inc (Ziff Davis).
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