F5 Networks (FFIV) Downgraded by Zacks Investment Research
Zacks Investment Research lowered shares of F5 Networks (NASDAQ:FFIV) from a buy rating to a hold rating in a report issued on Monday morning.
According to Zacks, “F5 Networks provides products and services to manage Internet traffic worldwide. Revenue growth seems to be steady, positively impacted by strength across all its business segments and higher software revenues. We believe that the company’s product refreshes will boost revenues, going forward. It is worth mentioning that the company’s GBB pricing strategy and its BIG-IQ platform remain tailwinds. Moreover, these initiatives are expected to expand the company’s total addressable market and result in client wins. Better execution and focus on enterprise and service providers have placed F5 Networks well in the application delivery controller market. Nevertheless, a volatile spending atmosphere and competition from peers remain concerns. The stock has underperformed the industry in the last one year.”
FFIV has been the topic of a number of other research reports. KeyCorp reaffirmed a hold rating on shares of F5 Networks in a report on Wednesday, October 11th. Nomura cut their price target on F5 Networks from $120.00 to $115.00 and set a neutral rating on the stock in a report on Monday, October 16th. Robert W. Baird reaffirmed a hold rating and set a $125.00 price target on shares of F5 Networks in a report on Wednesday, October 4th. Cowen reaffirmed a buy rating and set a $140.00 price target on shares of F5 Networks in a report on Friday, October 27th. Finally, Barclays cut their price target on F5 Networks from $116.00 to $111.00 and set an overweight rating on the stock in a report on Thursday, October 26th. Two research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and seven have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $132.16.
Shares of F5 Networks (NASDAQ FFIV) opened at $139.55 on Monday. The firm has a market capitalization of $8,795.64, a P/E ratio of 21.37, a PEG ratio of 2.17 and a beta of 1.06. F5 Networks has a twelve month low of $114.63 and a twelve month high of $149.50.
F5 Networks (NASDAQ:FFIV) last released its quarterly earnings results on Wednesday, October 25th. The network technology company reported $2.44 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.20 by $0.24. The company had revenue of $538.00 million for the quarter, compared to analysts’ expectations of $534.71 million. F5 Networks had a return on equity of 34.70% and a net margin of 20.13%. The business’s revenue for the quarter was up 2.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.11 earnings per share. sell-side analysts predict that F5 Networks will post 6.74 earnings per share for the current fiscal year.
F5 Networks declared that its board has initiated a stock buyback program on Wednesday, October 25th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the network technology company to reacquire shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
In other F5 Networks news, CFO Andrew Reinland sold 2,241 shares of F5 Networks stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $121.03, for a total value of $271,228.23. Following the transaction, the chief financial officer now owns 15,369 shares in the company, valued at $1,860,110.07. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, COO Edward Julian Eames sold 15,489 shares of F5 Networks stock in a transaction that occurred on Wednesday, November 8th. The stock was sold at an average price of $120.84, for a total transaction of $1,871,690.76. Following the completion of the transaction, the chief operating officer now owns 21,587 shares in the company, valued at approximately $2,608,573.08. The disclosure for this sale can be found here. In the last 90 days, insiders sold 35,712 shares of company stock worth $4,316,345. 0.26% of the stock is currently owned by company insiders.
Institutional investors have recently bought and sold shares of the business. Schwab Charles Investment Management Inc. boosted its stake in F5 Networks by 5.3% in the 4th quarter. Schwab Charles Investment Management Inc. now owns 367,713 shares of the network technology company’s stock worth $48,252,000 after purchasing an additional 18,519 shares during the period. Benjamin F. Edwards & Company Inc. acquired a new position in F5 Networks in the 4th quarter worth approximately $756,000. Aurora Investment Counsel acquired a new position in F5 Networks in the 4th quarter worth approximately $2,806,000. California Public Employees Retirement System boosted its stake in F5 Networks by 3.4% in the 3rd quarter. California Public Employees Retirement System now owns 168,309 shares of the network technology company’s stock worth $20,291,000 after purchasing an additional 5,509 shares during the period. Finally, Ladenburg Thalmann Financial Services Inc. boosted its stake in F5 Networks by 89.1% in the 3rd quarter. Ladenburg Thalmann Financial Services Inc. now owns 3,349 shares of the network technology company’s stock worth $405,000 after purchasing an additional 1,578 shares during the period. Hedge funds and other institutional investors own 94.87% of the company’s stock.
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About F5 Networks
F5 Networks, Inc is a developer and provider of software defined application services. The Company is engaged in the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems.
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