SMART Global (NASDAQ:SGH) Shares Gap Up Following Better-Than-Expected Earnings

Shares of SMART Global Holdings, Inc. (NASDAQ:SGHGet Free Report) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $23.22, but opened at $25.71. SMART Global shares last traded at $26.48, with a volume of 690,157 shares traded.

The company reported $0.37 earnings per share for the quarter, beating analysts’ consensus estimates of $0.30 by $0.07. SMART Global had a positive return on equity of 11.82% and a negative net margin of 15.79%. The company had revenue of $300.58 million for the quarter, compared to analyst estimates of $300.00 million. During the same quarter last year, the company earned $0.46 earnings per share. The company’s revenue for the quarter was down 12.7% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on SGH. Needham & Company LLC lifted their price target on SMART Global from $27.00 to $30.00 and gave the company a “buy” rating in a research report on Wednesday. Rosenblatt Securities reiterated a “buy” rating and issued a $35.00 price target on shares of SMART Global in a research report on Wednesday, July 3rd. Finally, Stifel Nicolaus reiterated a “buy” rating and issued a $27.50 price target on shares of SMART Global in a research report on Wednesday, July 3rd.

Check Out Our Latest Research Report on SMART Global

Insider Buying and Selling

In related news, insider Joseph Gates Clark sold 2,529 shares of the business’s stock in a transaction dated Wednesday, April 24th. The stock was sold at an average price of $17.94, for a total transaction of $45,370.26. Following the completion of the transaction, the insider now directly owns 92,386 shares in the company, valued at $1,657,404.84. The transaction was disclosed in a document filed with the SEC, which is available through this link. 2.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On SMART Global

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Graham Capital Management L.P. bought a new stake in SMART Global during the third quarter worth about $284,000. Deutsche Bank AG lifted its stake in SMART Global by 46.3% during the third quarter. Deutsche Bank AG now owns 482,967 shares of the company’s stock worth $11,760,000 after purchasing an additional 152,918 shares during the last quarter. American Century Companies Inc. lifted its stake in SMART Global by 42.3% during the third quarter. American Century Companies Inc. now owns 292,916 shares of the company’s stock worth $7,133,000 after purchasing an additional 87,035 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of SMART Global by 11.1% in the 3rd quarter. Vanguard Group Inc. now owns 6,024,986 shares of the company’s stock valued at $146,708,000 after acquiring an additional 603,294 shares during the last quarter. Finally, SG Americas Securities LLC lifted its stake in shares of SMART Global by 75.6% in the 4th quarter. SG Americas Securities LLC now owns 234,927 shares of the company’s stock valued at $4,447,000 after acquiring an additional 101,159 shares during the last quarter.

SMART Global Stock Performance

The company has a debt-to-equity ratio of 1.80, a quick ratio of 2.66 and a current ratio of 3.30. The business has a 50 day moving average price of $21.42 and a two-hundred day moving average price of $21.42. The company has a market cap of $1.53 billion, a P/E ratio of -7.97 and a beta of 1.69.

SMART Global Company Profile

(Get Free Report)

SMART Global Holdings, Inc, a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. It operates through Memory Solutions, Intelligent Platform Solutions, and LED Solutions segments. The company offers dynamic random access memory modules, solid-state and flash storage, and other advanced memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services.

Further Reading

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