Zacks Investment Research Lowers Vonage (NASDAQ:VG) to Sell

Vonage (NASDAQ:VGGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday, Zacks.com reports.

According to Zacks, “Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage’s service area encompasses more than 2000 active rate centers in over 130 global markets. Vonage is sold directly through their website and retail partners such as SAM’s Club, Amazon.com, RadioShack, Best Buy, Circuit City, Staples, Fry’s Electronics and Office Depot. Wholesale partners such as EarthLink, ARMSTRONG(R), Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 300,000 lines in service, Vonage continues to add more than 30,000 lines per month to its network. Over 10 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. “

Shares of Vonage stock traded up $0.15 during midday trading on Wednesday, reaching $20.11. 53,476 shares of the company’s stock traded hands, compared to its average volume of 4,522,128. The company has a market cap of $5.11 billion, a price-to-earnings ratio of -201.08, a price-to-earnings-growth ratio of 20.54 and a beta of 0.62. The company’s 50 day simple moving average is $20.17 and its 200 day simple moving average is $19.63. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.76 and a current ratio of 0.76. Vonage has a 52 week low of $12.15 and a 52 week high of $20.92.

Vonage (NASDAQ:VGGet Rating) last released its quarterly earnings results on Thursday, February 24th. The company reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.05). Vonage had a negative net margin of 1.74% and a positive return on equity of 5.29%. The business had revenue of $366.00 million for the quarter, compared to the consensus estimate of $362.47 million. During the same quarter in the prior year, the business posted $0.02 EPS. The firm’s revenue for the quarter was up 13.2% compared to the same quarter last year. As a group, equities research analysts predict that Vonage will post 0.2 earnings per share for the current year.

In related news, Director Jeffrey A. Citron sold 25,000 shares of the firm’s stock in a transaction on Thursday, February 10th. The shares were sold at an average price of $20.87, for a total value of $521,750.00. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Vinod Lala sold 71,543 shares of the firm’s stock in a transaction on Friday, March 18th. The shares were sold at an average price of $20.12, for a total transaction of $1,439,445.16. The disclosure for this sale can be found here. Insiders sold a total of 306,452 shares of company stock worth $6,180,827 over the last quarter. 4.72% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of VG. Amundi Pioneer Asset Management Inc. grew its position in Vonage by 19.6% in the 1st quarter. Amundi Pioneer Asset Management Inc. now owns 94,576 shares of the company’s stock worth $950,000 after purchasing an additional 15,500 shares during the last quarter. Amalgamated Bank lifted its holdings in shares of Vonage by 1.0% during the 3rd quarter. Amalgamated Bank now owns 130,631 shares of the company’s stock worth $2,106,000 after acquiring an additional 1,267 shares during the period. Versor Investments LP bought a new position in shares of Vonage during the 3rd quarter worth about $461,000. Advisor Group Holdings Inc. lifted its holdings in shares of Vonage by 37.5% during the 3rd quarter. Advisor Group Holdings Inc. now owns 15,384 shares of the company’s stock worth $247,000 after acquiring an additional 4,193 shares during the period. Finally, Swiss National Bank lifted its holdings in shares of Vonage by 1.2% during the 3rd quarter. Swiss National Bank now owns 527,700 shares of the company’s stock worth $8,507,000 after acquiring an additional 6,000 shares during the period. Institutional investors own 91.93% of the company’s stock.

About Vonage (Get Rating)

Vonage Holdings Corp. primarily operates as a cloud communications company in the United States, Canada, the United Kingdom, the European Union, and Asia. It operates in two segments, Vonage Communications Platform and Consumer. The Vonage Communications Platform segment offers programmable, embeddable, and customizable application program interfaces that enable software developers to build communications capabilities, such as messaging and voice calling within their applications; and Vonage Contact Center, a cloud contact center solution.

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