Zacks Investment Research Downgrades Switch (SWCH) to Hold

Zacks Investment Research lowered shares of Switch (NYSE:SWCH) from a buy rating to a hold rating in a report released on Thursday 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. “

Other research analysts also recently issued reports about the company. BMO Capital Markets reiterated a buy rating and set a $10.50 price objective on shares of Switch in a research note on Tuesday, March 12th. Berenberg Bank assumed coverage on Switch in a research note on Tuesday, January 8th. They set a buy rating and a $11.00 price objective for the company. Six investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Switch currently has an average rating of Buy and an average target price of $13.82.

Shares of NYSE:SWCH opened at $10.69 on Thursday. The company has a market cap of $2.64 billion, a P/E ratio of 118.78, a P/E/G ratio of 5.32 and a beta of 1.05. The company has a quick ratio of 1.44, a current ratio of 1.44 and a debt-to-equity ratio of 0.85. Switch has a 12-month low of $6.39 and a 12-month high of $16.04.

Switch (NYSE:SWCH) last announced its quarterly earnings data on Tuesday, March 12th. The company reported $0.05 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.03 by $0.02. The company had revenue of $103.21 million during the quarter, compared to the consensus estimate of $104.36 million. Switch had a return on equity of 0.56% and a net margin of 1.00%. On average, sell-side analysts expect that Switch will post 0.17 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 4th. Investors of record on Monday, March 25th were issued a $0.0294 dividend. The ex-dividend date was Friday, March 22nd. This is a boost from Switch’s previous quarterly dividend of $0.01. This represents a $0.12 dividend on an annualized basis and a yield of 1.10%. Switch’s payout ratio is currently 133.33%.

In related news, 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 value of $3,126,000.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 12.64% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Alliancebernstein L.P. raised its holdings in shares of Switch by 7.0% during the 3rd quarter. Alliancebernstein L.P. now owns 89,371 shares of the company’s stock worth $965,000 after acquiring an additional 5,810 shares in the last quarter. Jane Street Group LLC raised its holdings in shares of Switch by 97.2% during the 3rd quarter. Jane Street Group LLC now owns 57,608 shares of the company’s stock worth $622,000 after acquiring an additional 28,398 shares in the last quarter. Point72 Asset Management L.P. raised its holdings in shares of Switch by 53.4% during the 3rd quarter. Point72 Asset Management L.P. now owns 383,601 shares of the company’s stock worth $4,143,000 after acquiring an additional 133,601 shares in the last quarter. Teachers Advisors LLC raised its holdings in shares of Switch by 20.7% during the 3rd quarter. Teachers Advisors LLC now owns 41,947 shares of the company’s stock worth $453,000 after acquiring an additional 7,182 shares in the last quarter. Finally, Morgan Stanley raised its holdings in shares of Switch by 5,470.3% during the 3rd quarter. Morgan Stanley now owns 449,188 shares of the company’s stock worth $4,852,000 after acquiring an additional 441,124 shares in the last quarter. 18.97% of the stock is currently owned by 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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