Zacks Investment Research Downgrades Avaya (AVYA) to Sell

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Zacks Investment Research cut shares of Avaya (NYSE:AVYA) from a hold rating to a sell rating in a research note published on Monday morning, Zacks.com reports.

According to Zacks, “Avaya Holdings Corp. provides real-time communication applications. The company offer portfolio of software and services for contact center and unified communications which provide on premises, in the cloud or a hybrid. Avaya Holdings Corp. is based in Santa Clara, United States. “

Several other research firms have also commented on AVYA. BWS Financial dropped their price target on Avaya from $32.00 to $22.00 and set a hold rating for the company in a research report on Friday, May 10th. Northland Securities reiterated a buy rating and issued a $21.00 price target on shares of Avaya in a research report on Friday, May 10th. Guggenheim began coverage on Avaya in a research report on Monday, March 11th. They issued a buy rating and a $22.00 price target for the company. Finally, Barclays upgraded Avaya from an equal weight rating to an overweight rating and lifted their price target for the stock from $20.00 to $21.00 in a research report on Friday, January 25th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company. Avaya presently has an average rating of Hold and an average target price of $21.06.

Shares of Avaya stock opened at $14.67 on Monday. The stock has a market cap of $1.64 billion, a PE ratio of 5.17 and a beta of 1.52. Avaya has a twelve month low of $12.89 and a twelve month high of $23.40. The company has a quick ratio of 1.25, a current ratio of 1.31 and a debt-to-equity ratio of 1.45.

Avaya (NYSE:AVYA) last released its quarterly earnings results on Thursday, May 9th. The company reported $0.72 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.72. The company had revenue of $714.00 million during the quarter, compared to analyst estimates of $748.47 million. Avaya had a return on equity of 16.10% and a net margin of 6.12%. The company’s quarterly revenue was down 5.7% on a year-over-year basis. Analysts anticipate that Avaya will post 3.16 earnings per share for the current fiscal year.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AVYA. Skylands Capital LLC lifted its stake in Avaya by 314.0% in the first quarter. Skylands Capital LLC now owns 285,450 shares of the company’s stock worth $4,804,000 after purchasing an additional 216,500 shares during the last quarter. Legal & General Group Plc lifted its stake in Avaya by 7.2% in the fourth quarter. Legal & General Group Plc now owns 43,331 shares of the company’s stock worth $631,000 after purchasing an additional 2,912 shares during the last quarter. Paloma Partners Management Co bought a new stake in Avaya in the fourth quarter worth about $154,000. Benefit Street Partners LLC lifted its stake in Avaya by 9.1% in the fourth quarter. Benefit Street Partners LLC now owns 3,283,372 shares of the company’s stock worth $47,806,000 after purchasing an additional 273,218 shares during the last quarter. Finally, Rhumbline Advisers lifted its stake in Avaya by 41.9% in the fourth quarter. Rhumbline Advisers now owns 154,452 shares of the company’s stock worth $2,249,000 after purchasing an additional 45,604 shares during the last quarter. Institutional investors own 98.34% of the company’s stock.

Avaya Company Profile

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices.

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