Zacks Investment Research Downgrades ARRIS International (ARRS) to Hold
Zacks Investment Research downgraded shares of ARRIS International (NASDAQ:ARRS) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “ARRIS has an impressive earnings history. We expected the company to perform well in the final quarter of 2017 too driven by its strong product portfolio. The company expects earnings (adjusted) between 74 cents and 80 cents in the fourth quarter of 2017. The company has recently inked several deals to broaden its product portfolio. Most recently, it completed the previously announced acquisition of Ruckus Wireless and ICX Switch units from Broadcom. The acquisition is expected to be value accretive to its earnings in the first year. However, the company's revenue related woes are concerning. It anticipates revenues in the range of $1,675-$1,750 million for the fourth quarter. Customer concentration remains high for ARRIS with few customers accounting for a significant portion of its top-line. In fact shares of the company have underperformed its industry so far this year.”
Several other research analysts have also commented on the company. ValuEngine upgraded ARRIS International from a hold rating to a buy rating in a research report on Friday, December 1st. Jefferies Group set a $38.00 target price on ARRIS International and gave the company a buy rating in a research report on Wednesday, October 4th. Raymond James Financial set a $38.00 target price on ARRIS International and gave the company a buy rating in a research report on Monday, December 4th. Northland Securities set a $25.00 target price on ARRIS International and gave the company a hold rating in a research report on Monday, October 16th. Finally, BidaskClub lowered ARRIS International from a hold rating to a sell rating in a research report on Thursday, December 7th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and seven have assigned a buy rating to the company’s stock. ARRIS International has an average rating of Buy and a consensus target price of $33.40.
Shares of ARRIS International (NASDAQ:ARRS) traded down $0.67 during mid-day trading on Wednesday, hitting $26.23. The stock had a trading volume of 2,430,759 shares, compared to its average volume of 1,520,000. The company has a market capitalization of $4,780.00, a PE ratio of 30.15, a price-to-earnings-growth ratio of 1.16 and a beta of 1.39. ARRIS International has a 1 year low of $24.75 and a 1 year high of $31.52. The company has a quick ratio of 1.43, a current ratio of 1.83 and a debt-to-equity ratio of 0.65.
ARRIS International (NASDAQ:ARRS) last released its quarterly earnings results on Wednesday, November 1st. The communications equipment provider reported $0.80 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.62 by $0.18. The company had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.77 billion. ARRIS International had a return on equity of 14.02% and a net margin of 2.51%. The firm’s revenue was down .2% on a year-over-year basis. During the same quarter last year, the business posted $0.77 earnings per share. research analysts forecast that ARRIS International will post 2.32 EPS for the current fiscal year.
In related news, SVP Patrick W. Macken sold 1,250 shares of the company’s stock in a transaction on Monday, November 20th. The stock was sold at an average price of $29.26, for a total value of $36,575.00. Following the transaction, the senior vice president now directly owns 4,556 shares of the company’s stock, valued at approximately $133,308.56. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Lawrence Robinson sold 4,167 shares of the company’s stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $30.00, for a total value of $125,010.00. Following the completion of the transaction, the insider now directly owns 71,721 shares in the company, valued at $2,151,630. The disclosure for this sale can be found here. Corporate insiders own 0.90% of the company’s stock.
A number of large investors have recently bought and sold shares of the business. Marshall Wace North America L.P. raised its holdings in ARRIS International by 188.1% in the 2nd quarter. Marshall Wace North America L.P. now owns 75,745 shares of the communications equipment provider’s stock valued at $2,121,000 after acquiring an additional 49,456 shares during the last quarter. Eii Capital Management Inc. increased its holdings in shares of ARRIS International by 10.5% during the 2nd quarter. Eii Capital Management Inc. now owns 118,675 shares of the communications equipment provider’s stock worth $3,325,000 after buying an additional 11,250 shares during the last quarter. Martingale Asset Management L P acquired a new stake in shares of ARRIS International during the 2nd quarter worth approximately $2,989,000. Riverhead Capital Management LLC increased its holdings in shares of ARRIS International by 675.7% during the 2nd quarter. Riverhead Capital Management LLC now owns 49,647 shares of the communications equipment provider’s stock worth $1,391,000 after buying an additional 43,247 shares during the last quarter. Finally, Teachers Advisors LLC increased its holdings in shares of ARRIS International by 9.6% during the 2nd quarter. Teachers Advisors LLC now owns 904,962 shares of the communications equipment provider’s stock worth $25,357,000 after buying an additional 79,439 shares during the last quarter. 86.51% of the stock is currently owned by institutional investors.
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ARRIS International Company Profile
ARRIS International plc is a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers.
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