Recent Investment Analysts’ Ratings Changes for Zayo Group (ZAYO)

Zayo Group (NYSE: ZAYO) has recently received a number of price target changes and ratings updates:

  • 2/11/2019 – Zayo Group was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $29.00 price target on the stock. According to Zacks, “Zayo’s extensive network footprint, diversified product portfolio and ability to penetrate in different markets are laudable. The company continues to extend global reach by expanding its fiber footprint and forging strategic partnerships with local providers. Zayo remains bullish about additional E-Rate opportunities in the upcoming quarters and is well poised to benefit from the growing need for cloud adoption and high-performance bandwidth throughout the world. The company has announced plans to separate into two publicly traded companies to better focus on its businesses. The stock has outperformed the industry on average in the past year. However, Zayo reported lackluster second-quarter fiscal 2019 results, wherein both the top line and bottom line missed the respective Zacks Consensus Estimate. In addition, rising cost of goods sold has remained a major concern for Zayo, which may continue to hurt its margins.”
  • 2/11/2019 – Zayo Group had its price target raised by analysts at Deutsche Bank AG from $30.00 to $31.00. They now have a “buy” rating on the stock.
  • 2/4/2019 – Zayo Group was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 1/23/2019 – Zayo Group is now covered by analysts at Craig Hallum. They set a “buy” rating and a $45.00 price target on the stock.
  • 1/19/2019 – Zayo Group was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Zayo is experiencing broad-based demand across all the customer verticals. Its extensive network footprint, diversified product portfolio and ability to penetrate in different markets are laudable. Zayo continues to extend global reach by expanding its fiber footprint and forging strategic partnerships with local providers. The company announced plans to separate into two publicly traded companies to better focus on its businesses. The stock has outperformed the industry on an average in the past year. However, given the company’s international presence, its business is exposed to macroeconomic risks. Over the past several years, rising cost of goods sold has remained a major concern for Zayo, which may continue to hurt its margins. In addition, the company’s policy of continuous inorganic expansion adds to integration risks. On EV/EBITDA (TTM) basis, Zayo is trading at premium to the industry. This makes us cautious toward the stock.”
  • 1/12/2019 – Zayo Group was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Zayo is experiencing broad-based demand across all the customer verticals. Its extensive network footprint, diversified product portfolio and ability to penetrate in different markets are commendable. The stock has outperformed the industry on average in the past year. However, given the company’s international presence, its business is exposed to macroeconomic risks. Over the past several years, rising cost of goods sold has remained a major concern for Zayo, which may continue to hurt its margins. In addition, the company’s policy of continuous inorganic expansion adds to integration risks. Moreover, efforts to build resilient infrastructure facilities to withstand natural catastrophes have increased operating costs for the company. Further, simmering tensions between the United States and China related to various trade restrictions have dented the credibility of the industry and led to loss of businesses.”

Shares of NYSE:ZAYO opened at $25.51 on Tuesday. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 3.75. Zayo Group Holdings Inc has a one year low of $20.27 and a one year high of $39.66. The firm has a market capitalization of $6.22 billion, a price-to-earnings ratio of 41.82, a PEG ratio of 3.23 and a beta of 0.92.

Zayo Group (NYSE:ZAYO) last posted its quarterly earnings data on Thursday, February 7th. The technology company reported $0.13 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.15 by ($0.02). The company had revenue of $639.10 million for the quarter, compared to analysts’ expectations of $641.73 million. Zayo Group had a net margin of 4.62% and a return on equity of 7.82%. The business’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.05 EPS. On average, equities analysts expect that Zayo Group Holdings Inc will post 0.54 earnings per share for the current fiscal year.

In other news, insider Sandra Mays sold 4,454 shares of the firm’s stock in a transaction on Thursday, January 3rd. The shares were sold at an average price of $24.16, for a total transaction of $107,608.64. Following the sale, the insider now owns 41,273 shares in the company, valued at approximately $997,155.68. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Matt Steinfort sold 6,142 shares of the firm’s stock in a transaction on Thursday, January 3rd. The shares were sold at an average price of $24.16, for a total transaction of $148,390.72. Following the sale, the chief financial officer now owns 22,896 shares in the company, valued at approximately $553,167.36. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 16,144 shares of company stock worth $390,039. Corporate insiders own 4.50% of the company’s stock.

Institutional investors have recently bought and sold shares of the company. Bank of Montreal Can raised its position in Zayo Group by 41,389.3% in the 4th quarter. Bank of Montreal Can now owns 4,053,917 shares of the technology company’s stock worth $92,591,000 after purchasing an additional 4,044,146 shares during the period. Zimmer Partners LP raised its position in Zayo Group by 100.2% in the 3rd quarter. Zimmer Partners LP now owns 8,040,619 shares of the technology company’s stock worth $279,170,000 after purchasing an additional 4,024,842 shares during the period. Morgan Stanley raised its position in Zayo Group by 149.3% in the 3rd quarter. Morgan Stanley now owns 4,579,809 shares of the technology company’s stock worth $159,012,000 after purchasing an additional 2,742,559 shares during the period. Canada Pension Plan Investment Board raised its position in Zayo Group by 23.2% in the 3rd quarter. Canada Pension Plan Investment Board now owns 9,700,928 shares of the technology company’s stock worth $336,816,000 after purchasing an additional 1,829,350 shares during the period. Finally, BlackRock Inc. raised its position in Zayo Group by 11.8% in the 3rd quarter. BlackRock Inc. now owns 14,857,145 shares of the technology company’s stock worth $515,841,000 after purchasing an additional 1,568,218 shares during the period. Hedge funds and other institutional investors own 98.56% of the company’s stock.

Zayo Group Holdings, Inc, through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other.

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