Mellanox Technologies (NASDAQ:MLNX) Lifted to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Mellanox Technologies (NASDAQ:MLNX) from a hold rating to a buy rating in a research report released on Tuesday, Zacks.com reports. Zacks Investment Research currently has $125.00 price target on the semiconductor producer’s stock.

According to Zacks, “Mellanox is benefiting from robust demand for ethernet adapters, switches and LinkX cables. Solid demand of its Gigabit EDR solutions in AI, HPC, ML, database, storage and more; bode well. Further, strong adoption of Mellanox’s InfiniBand solutions is a key catalyst. The company has also won several contracts from the likes of NetApp and NASA Ames Research Center, which reflects sturdy demand for its solutions. Recently, NVIDIA inked a definitive agreement to acquire Mellanox for a total enterprise value of around $6.9 billion. The buyout is slated to close by the end of calendar 2019. Notably, shares of Mellanox have outperformed the industry in the past year. However, exposure to foreign currency and significant customer concentration remain headwinds. Estimates have been going down ahead of the company’s Q2 earnings release.”

MLNX has been the topic of several other research reports. BidaskClub upgraded Zillow Group from a buy rating to a strong-buy rating in a research report on Tuesday, July 2nd. Rosenblatt Securities upped their price target on shares of QUALCOMM from $70.00 to $82.00 and gave the company a buy rating in a research report on Wednesday, April 17th. Finally, Jefferies Financial Group cut their price target on shares of MAV Beauty Brands from C$15.00 to C$14.00 in a research report on Friday, March 29th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have assigned a buy rating to the company’s stock. Mellanox Technologies currently has an average rating of Hold and a consensus price target of $117.99.

Shares of MLNX stock traded down $0.19 during mid-day trading on Tuesday, hitting $111.99. The company’s stock had a trading volume of 760 shares, compared to its average volume of 380,901. The stock’s fifty day simple moving average is $111.33. Mellanox Technologies has a 52 week low of $65.68 and a 52 week high of $121.13. The company has a current ratio of 3.38, a quick ratio of 2.99 and a debt-to-equity ratio of 0.04. The company has a market cap of $6.16 billion, a P/E ratio of 29.07, a PEG ratio of 1.05 and a beta of 0.36.

Mellanox Technologies (NASDAQ:MLNX) last issued its quarterly earnings data on Tuesday, April 16th. The semiconductor producer reported $1.15 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.30). Mellanox Technologies had a return on equity of 17.69% and a net margin of 12.69%. The company had revenue of $305.20 million for the quarter, compared to the consensus estimate of $300.40 million. During the same period in the prior year, the firm posted $0.98 earnings per share. The business’s revenue for the quarter was up 21.6% on a year-over-year basis. On average, equities analysts forecast that Mellanox Technologies will post 5.01 EPS for the current year.

In other Mellanox Technologies news, Director Glenda Dorchak sold 1,750 shares of the business’s stock in a transaction dated Monday, July 8th. The shares were sold at an average price of $112.12, for a total value of $196,210.00. Following the completion of the sale, the director now directly owns 20,716 shares of the company’s stock, valued at approximately $2,322,677.92. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Steve Sanghi acquired 20,000 shares of the stock in a transaction on Wednesday, June 5th. The stock was bought at an average cost of $110.54 per share, with a total value of $2,210,800.00. The disclosure for this purchase can be found here. Insiders own 4.20% of the company’s stock.

A number of large investors have recently bought and sold shares of the stock. Clal Insurance Enterprises Holdings Ltd increased its stake in Mellanox Technologies by 1.8% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,922,386 shares of the semiconductor producer’s stock valued at $227,534,000 after purchasing an additional 33,874 shares in the last quarter. Neuberger Berman Group LLC lifted its holdings in Mellanox Technologies by 27.0% during the first quarter. Neuberger Berman Group LLC now owns 1,404,302 shares of the semiconductor producer’s stock valued at $166,207,000 after purchasing an additional 298,466 shares in the last quarter. Alpine Associates Management Inc. purchased a new position in shares of Mellanox Technologies in the first quarter worth about $140,672,000. CNH Partners LLC purchased a new position in shares of Mellanox Technologies in the first quarter worth about $111,064,000. Finally, Windacre Partnership LLC purchased a new position in shares of Mellanox Technologies in the fourth quarter worth about $66,883,000. 75.09% of the stock is owned by institutional investors.

Mellanox Technologies Company Profile

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, markets, and sells interconnect products and solutions. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. The company offers InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; and Ethernet solutions, such as Ethernet switch products and Ethernet adapters for use in enterprise data center, high-performance computing, embedded environments, hyperscale, Web 2.0, and cloud data centers.

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