Smart Global (SGH) Reaches New 12-Month Low on Disappointing Earnings

Smart Global Holdings Inc (NASDAQ:SGH)’s share price reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $22.50 and last traded at $23.37, with a volume of 6107397 shares trading hands. The stock had previously closed at $31.91.

The company reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.77 by ($0.17). The company had revenue of $393.90 million during the quarter, compared to analyst estimates of $382.23 million. Smart Global had a return on equity of 92.01% and a net margin of 9.27%. The business’s revenue for the quarter was up 48.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.05 earnings per share.

Several analysts have issued reports on SGH shares. Roth Capital decreased their price target on shares of Smart Global from $60.00 to $40.00 and set a “buy” rating on the stock in a research report on Wednesday. ValuEngine upgraded shares of Smart Global from a “sell” rating to a “hold” rating in a research report on Tuesday, October 16th. BidaskClub lowered shares of Smart Global from a “hold” rating to a “sell” rating in a research report on Wednesday, October 24th. Barclays restated a “buy” rating and issued a $38.00 price target on shares of Smart Global in a research report on Thursday. Finally, Stifel Nicolaus decreased their target price on shares of Smart Global from $62.00 to $50.00 and set a “buy” rating on the stock in a research report on Wednesday. One analyst has rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the company’s stock. Smart Global currently has a consensus rating of “Hold” and a consensus target price of $47.50.

In other news, insider Alan Marten sold 8,800 shares of Smart Global stock in a transaction dated Monday, October 15th. The shares were sold at an average price of $31.79, for a total transaction of $279,752.00. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Bruce M. Goldberg sold 3,042 shares of Smart Global stock in a transaction dated Thursday, December 20th. The shares were sold at an average price of $30.20, for a total transaction of $91,868.40. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 282,482 shares of company stock worth $8,813,724. 4.20% of the stock is owned by company insiders.

Institutional investors have recently modified their holdings of the company. Macquarie Group Ltd. boosted its position in Smart Global by 13.2% in the second quarter. Macquarie Group Ltd. now owns 20,600 shares of the company’s stock valued at $657,000 after buying an additional 2,400 shares in the last quarter. Martingale Asset Management L P boosted its position in Smart Global by 7.1% in the third quarter. Martingale Asset Management L P now owns 46,733 shares of the company’s stock valued at $1,344,000 after buying an additional 3,103 shares in the last quarter. Chicago Equity Partners LLC boosted its position in Smart Global by 2.4% in the third quarter. Chicago Equity Partners LLC now owns 147,130 shares of the company’s stock valued at $4,229,000 after buying an additional 3,420 shares in the last quarter. Ativo Capital Management LLC boosted its position in Smart Global by 13.8% in the third quarter. Ativo Capital Management LLC now owns 33,011 shares of the company’s stock valued at $949,000 after buying an additional 4,003 shares in the last quarter. Finally, Millennium Management LLC boosted its position in Smart Global by 9.9% in the second quarter. Millennium Management LLC now owns 44,705 shares of the company’s stock valued at $1,425,000 after buying an additional 4,029 shares in the last quarter. Institutional investors and hedge funds own 83.06% of the company’s stock.

The stock has a market cap of $675.46 million, a P/E ratio of 4.04, a PEG ratio of 0.30 and a beta of 1.04. The company has a current ratio of 1.76, a quick ratio of 1.02 and a debt-to-equity ratio of 0.98.

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Smart Global Company Profile (NASDAQ:SGH)

SMART Global Holdings, Inc designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements.

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