Northland Securities lowered shares of Stamps.com (NASDAQ:STMP) from an outperform rating to a market perform rating in a research note issued to investors on Thursday morning, AnalystRatings.com reports. They currently have $80.00 price objective on the software maker’s stock, down from their previous price objective of $145.00.
“We also note the higher tax rate of 40%, up from the prior 30%, as portions of executive compensation are no longer deductible, which with a lower income level, pushes the tax rate to the highest on our list. Reseller Arrangements: Stamps derived a substantial portion of its services revenues from rev shares with the resellers (we estimate $66mn, or 50% in Q1), going to 45% on our new model for Q3 in a very rough cut. The challenge in estimating the impact from new arrangement is: 1) the USPS has just started the process and visibility into the magnitude is very limited; 2) resellers (and ecommerce shippers) will probably switch some unknown volume to other carriers as the pricing differentials shift; and 3) the timing is very much up in the air.”,” Northland Securities’ analyst wrote.
Several other brokerages have also issued reports on STMP. B. Riley dropped their target price on Stamps.com from $300.00 to $130.00 and set a buy rating for the company in a research report on Friday, February 22nd. BidaskClub upgraded Stamps.com from a strong sell rating to a sell rating in a research report on Thursday, April 25th. Zacks Investment Research upgraded Stamps.com from a strong sell rating to a hold rating in a research report on Thursday, April 25th. Maxim Group lowered Stamps.com from a buy rating to a hold rating in a report on Friday, February 22nd. Finally, TheStreet lowered Stamps.com from a b- rating to a c+ rating in a report on Monday, March 11th. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $81.86.
Stamps.com (NASDAQ:STMP) last announced its earnings results on Wednesday, May 8th. The software maker reported $0.84 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.70 by $0.14. Stamps.com had a return on equity of 26.02% and a net margin of 23.31%. The business had revenue of $136.00 million during the quarter, compared to analyst estimates of $126.06 million. During the same quarter in the previous year, the business earned $2.54 earnings per share. The company’s revenue for the quarter was up 1.8% compared to the same quarter last year. Analysts anticipate that Stamps.com will post 3.95 EPS for the current fiscal year.
In related news, Director Mohan P. Ananda sold 1,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $93.32, for a total value of $93,320.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Amine Khechfe sold 11,200 shares of the business’s stock in a transaction that occurred on Friday, February 15th. The stock was sold at an average price of $200.00, for a total transaction of $2,240,000.00. Following the completion of the transaction, the insider now directly owns 11,591 shares of the company’s stock, valued at approximately $2,318,200. The disclosure for this sale can be found here. 6.17% of the stock is currently owned by insiders.
A number of large investors have recently modified their holdings of STMP. SQN Investors LP raised its stake in Stamps.com by 91.9% in the fourth quarter. SQN Investors LP now owns 599,282 shares of the software maker’s stock worth $93,272,000 after buying an additional 287,070 shares in the last quarter. Morgan Stanley raised its stake in Stamps.com by 49.5% in the third quarter. Morgan Stanley now owns 740,945 shares of the software maker’s stock worth $167,602,000 after buying an additional 245,300 shares in the last quarter. Norges Bank bought a new position in Stamps.com in the fourth quarter worth approximately $27,716,000. Elk Creek Partners LLC bought a new position in Stamps.com in the first quarter worth approximately $10,813,000. Finally, Epoch Investment Partners Inc. raised its stake in Stamps.com by 70.5% in the fourth quarter. Epoch Investment Partners Inc. now owns 280,643 shares of the software maker’s stock worth $43,679,000 after buying an additional 115,999 shares in the last quarter. 99.15% of the stock is owned by institutional investors.
Stamps.com Company Profile
Stamps.com Inc provides Internet-based mailing and shipping solutions in the United States and Europe. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others.
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