Zayo Group (ZAYO) Lowered to Sector Perform at Royal Bank of Canada

Royal Bank of Canada lowered shares of Zayo Group (NYSE:ZAYO) from an outperform rating to a sector perform rating in a research note released on Wednesday, BenzingaRatingsTable reports. Royal Bank of Canada currently has $35.00 price objective on the technology company’s stock, up from their previous price objective of $33.00.

A number of other equities analysts have also weighed in on the company. ValuEngine lowered Zayo Group from a hold rating to a sell rating in a research report on Monday, February 4th. Craig Hallum initiated coverage on Zayo Group in a research report on Wednesday, January 23rd. They issued a buy rating and a $45.00 price target for the company. Deutsche Bank increased their price target on Zayo Group from $30.00 to $31.00 and gave the company a buy rating in a research report on Monday, February 11th. Zacks Investment Research upgraded Zayo Group from a sell rating to a hold rating in a research report on Saturday, January 19th. Finally, Wells Fargo & Co lowered Zayo Group from an outperform rating to a market perform rating and increased their price target for the company from $34.00 to $35.00 in a research report on Wednesday. Nine research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $35.62.

NYSE:ZAYO opened at $32.83 on Wednesday. The company has a debt-to-equity ratio of 5.13, a current ratio of 0.85 and a quick ratio of 0.85. Zayo Group has a 1-year low of $20.27 and a 1-year high of $39.66. The firm has a market capitalization of $7.73 billion, a P/E ratio of 53.82, a P/E/G ratio of 11.62 and a beta of 0.93.

Zayo Group (NYSE:ZAYO) last released its quarterly earnings results on Wednesday, May 8th. The technology company reported $0.15 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.17 by ($0.02). Zayo Group had a net margin of 5.06% and a return on equity of 9.29%. The company had revenue of $647.20 million during the quarter, compared to analyst estimates of $639.98 million. During the same quarter last year, the business earned $0.09 EPS. The company’s revenue for the quarter was down .3% compared to the same quarter last year. Research analysts expect that Zayo Group will post 0.57 EPS for the current fiscal year.

In other Zayo Group news, COO John F. Jr. Waters sold 6,296 shares of the firm’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $28.04, for a total transaction of $176,539.84. Following the completion of the sale, the chief operating officer now directly owns 102,241 shares in the company, valued at approximately $2,866,837.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Sandra Mays sold 2,745 shares of the firm’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $28.04, for a total value of $76,969.80. Following the sale, the insider now owns 47,395 shares of the company’s stock, valued at $1,328,955.80. The disclosure for this sale can be found here. Company insiders own 4.50% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of ZAYO. Bank of New York Mellon Corp raised its stake in shares of Zayo Group by 5.2% during the 3rd quarter. Bank of New York Mellon Corp now owns 941,186 shares of the technology company’s stock worth $32,678,000 after purchasing an additional 46,617 shares in the last quarter. Neuberger Berman Group LLC raised its stake in shares of Zayo Group by 24.4% during the 3rd quarter. Neuberger Berman Group LLC now owns 5,160,787 shares of the technology company’s stock worth $179,182,000 after purchasing an additional 1,011,754 shares in the last quarter. TIAA CREF Investment Management LLC raised its stake in shares of Zayo Group by 14.5% during the 3rd quarter. TIAA CREF Investment Management LLC now owns 1,058,930 shares of the technology company’s stock worth $36,766,000 after purchasing an additional 134,332 shares in the last quarter. Nordea Investment Management AB raised its stake in shares of Zayo Group by 56.0% during the 3rd quarter. Nordea Investment Management AB now owns 8,176 shares of the technology company’s stock worth $284,000 after purchasing an additional 2,936 shares in the last quarter. Finally, Morgan Stanley raised its stake in shares of Zayo Group by 149.3% during 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 in the last quarter. 95.51% of the stock is owned by institutional investors.

Zayo Group Company Profile

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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Analyst Recommendations for Zayo Group (NYSE:ZAYO)

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