Switch (SWCH) Lifted to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Switch (NYSE:SWCH) from a hold rating to a buy rating in a report released on Saturday morning, Zacks.com reports. The brokerage currently has $13.00 price objective on the stock.

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. “

A number of other analysts have also weighed in on the company. JPMorgan Chase & Co. upped their price objective on Switch from $10.00 to $12.00 in a research report on Friday. BMO Capital Markets reiterated a buy rating and set a $10.50 target price on shares of Switch in a research note on Tuesday, March 12th. Four equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. Switch has an average rating of Buy and a consensus target price of $13.45.

Switch stock opened at $11.52 on Friday. Switch has a twelve month low of $6.39 and a twelve month high of $15.80. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.44 and a current ratio of 1.44. The firm has a market cap of $2.77 billion, a PE ratio of 128.00, a P/E/G ratio of 5.33 and a beta of 1.10.

Switch (NYSE:SWCH) last posted its quarterly earnings data on Wednesday, May 8th. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.02). Switch had a return on equity of 1.27% and a net margin of 0.98%. The company had revenue of $107.03 million for the quarter, compared to analysts’ expectations of $105.43 million. Analysts predict that Switch will post 0.18 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 4th. Investors of record on Wednesday, May 22nd will be paid a dividend of $0.0294 per share. The ex-dividend date is Tuesday, May 21st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.02%. 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 on Monday, March 18th. The shares were sold at an average price of $10.42, for a total transaction of $3,126,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Scott Russell Gragson sold 104,350 shares of the business’s stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $11.06, for a total transaction of $1,154,111.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 554,350 shares of company stock valued at $5,921,819. Insiders own 12.64% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northern Trust Corp boosted its stake in Switch by 1.6% in the first quarter. Northern Trust Corp now owns 255,400 shares of the company’s stock valued at $2,633,000 after acquiring an additional 4,094 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in Switch in the first quarter valued at $525,000. NumerixS Investment Technologies Inc acquired a new position in Switch in the first quarter valued at $90,000. BlackRock Inc. boosted its stake in Switch by 4.9% in the first quarter. BlackRock Inc. now owns 1,521,745 shares of the company’s stock valued at $15,688,000 after acquiring an additional 71,266 shares in the last quarter. Finally, Royce & Associates LP acquired a new position in Switch in the first quarter valued at $1,155,000. Institutional investors own 19.00% of the company’s stock.

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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