Zacks Investment Research Downgrades Tech Data (TECD) to Hold

Zacks Investment Research lowered shares of Tech Data (NASDAQ:TECD) from a strong-buy rating to a hold rating in a report published on Wednesday, Zacks.com reports.

According to Zacks, “Shares of Tech Data have outperformed the industry in the past six months. Although fourth-quarter fiscal 2019 top line missed the Zacks Consensus Estimate, investors were encouraged by the bottom-line beat. In fact, sales registered year-on-year growth in the past seven quarters. Further, the company’s top-line growth was mainly driven by solid sales performance in the Americas, with robust growth in cloud, storage, networking and notebooks. Moreover, Tech Data is working toward being a more flexible and cost-effective organization with the Global Business Optimization Program. The increasing demand for data center systems, cloud and mobility products also bodes well. Nevertheless, the company witnessed elevated SG&A costs for the past few quarters and is likely to remain a concern. Also, intense competition and headwinds related to data security act as deterrents.”

Other analysts have also issued research reports about the stock. Stifel Nicolaus lowered shares of Tech Data from a buy rating to a hold rating and set a $105.00 target price for the company. in a report on Wednesday, April 17th. BidaskClub raised shares of Tech Data from a hold rating to a buy rating in a report on Friday, April 5th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the company. Tech Data has an average rating of Hold and a consensus target price of $98.83.

Shares of Tech Data stock opened at $102.71 on Wednesday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.24 and a quick ratio of 0.86. The company has a market capitalization of $3.79 billion, a P/E ratio of 9.03, a P/E/G ratio of 4.02 and a beta of 0.96. Tech Data has a fifty-two week low of $66.93 and a fifty-two week high of $111.08.

Tech Data (NASDAQ:TECD) last issued its quarterly earnings results on Thursday, March 7th. The company reported $4.55 earnings per share for the quarter, beating analysts’ consensus estimates of $4.03 by $0.52. The business had revenue of $10.47 billion during the quarter, compared to analyst estimates of $10.63 billion. Tech Data had a net margin of 0.91% and a return on equity of 15.17%. Tech Data’s revenue for the quarter was up 4.3% compared to the same quarter last year. During the same quarter last year, the business posted $3.50 earnings per share. Equities analysts predict that Tech Data will post 11.77 earnings per share for the current fiscal year.

In other news, Director Robert M. Dutkowsky sold 2,100 shares of Tech Data stock in a transaction on Friday, April 5th. The shares were sold at an average price of $108.02, for a total transaction of $226,842.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP David R. Vetter sold 2,000 shares of Tech Data stock in a transaction on Friday, April 12th. The stock was sold at an average price of $110.18, for a total transaction of $220,360.00. The disclosure for this sale can be found here. Insiders have sold a total of 61,141 shares of company stock valued at $6,446,465 in the last ninety days. Company insiders own 1.10% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Rhumbline Advisers boosted its position in shares of Tech Data by 65.0% during the fourth quarter. Rhumbline Advisers now owns 116,506 shares of the company’s stock worth $9,531,000 after purchasing an additional 45,875 shares in the last quarter. American Century Companies Inc. boosted its position in shares of Tech Data by 31.2% during the fourth quarter. American Century Companies Inc. now owns 372,895 shares of the company’s stock worth $30,507,000 after purchasing an additional 88,625 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Tech Data by 9.9% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,586 shares of the company’s stock worth $212,000 after purchasing an additional 232 shares in the last quarter. Foundry Partners LLC boosted its position in shares of Tech Data by 9.0% during the first quarter. Foundry Partners LLC now owns 171,078 shares of the company’s stock worth $17,520,000 after purchasing an additional 14,103 shares in the last quarter. Finally, Commonwealth Bank of Australia boosted its position in shares of Tech Data by 16.1% during the fourth quarter. Commonwealth Bank of Australia now owns 41,726 shares of the company’s stock worth $3,410,000 after purchasing an additional 5,800 shares in the last quarter. 98.73% of the stock is currently owned by institutional investors.

Tech Data Company Profile

Tech Data Corporation operates as an IT distribution and solutions company. The company offers endpoint portfolio solutions, including personal computer systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics. It also provides advanced portfolio solutions, such as data center technologies comprising storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions.

Featured Story: Commodities

Get a free copy of the Zacks research report on Tech Data (TECD)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Tech Data (NASDAQ:TECD)

Receive News & Ratings for Tech Data Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tech Data and related companies with MarketBeat.com's FREE daily email newsletter.