According to Zacks, “Acquisitions have always been an integral part of the Tech Data’s growth strategy. Recently, the company announced to acquire Technology Solutions unit from Avnet, Inc in a cash and stock deal worth $2.6 billion. The deal will expand Tech Data’s data center distribution business. It will also give the company access to newer markets in Asia-Pacific region and boost its presence to 35 countries from 21 at present. Apart strategic M&A, Tech Data has strengthened its operations including collaboration with new vendors and expansion of its product offerings. However, a lackluster IT spending emerges as a big concern. In addition, as a wholesaler, in the devices market, the ongoing troubles in PC market do not bode well for Tech Data’s profitability. Intensifying competition and significant customer concentration risks add to woes.”
TECD has been the subject of several other reports. Citigroup Inc. increased their target price on Tech Data Corp. from $59.00 to $80.00 and gave the company a sell rating in a research note on Thursday, September 22nd. Bank of America Corp. upgraded Tech Data Corp. from an underperform rating to a neutral rating and raised their price objective for the stock from $67.00 to $80.00 in a research note on Tuesday, August 30th. They noted that the move was a valuation call. Needham & Company LLC restated a hold rating on shares of Tech Data Corp. in a research note on Friday, August 26th. Raymond James Financial Inc. restated a market perform rating on shares of Tech Data Corp. in a research note on Wednesday, June 29th. Finally, Stifel Nicolaus upgraded Tech Data Corp. from a hold rating to a buy rating and raised their price objective for the stock from $75.00 to $96.00 in a research note on Tuesday, September 20th. One analyst has rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $90.87.
Tech Data Corp. (NASDAQ:TECD) opened at 86.31 on Monday. The stock has a 50 day moving average of $77.72 and a 200 day moving average of $74.91. The stock has a market cap of $3.04 billion, a price-to-earnings ratio of 14.01 and a beta of 0.95. Tech Data Corp. has a 1-year low of $57.99 and a 1-year high of $88.70.
Tech Data Corp. (NASDAQ:TECD) last released its earnings results on Thursday, August 25th. The company reported $1.42 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.43 by $0.01. The business had revenue of $6.35 billion for the quarter, compared to analysts’ expectations of $6.63 billion. Tech Data Corp. had a net margin of 0.83% and a return on equity of 10.39%. The business’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same quarter last year, the company posted $1.43 earnings per share. Equities analysts expect that Tech Data Corp. will post $5.94 earnings per share for the current year.
Several hedge funds and other institutional investors have recently modified their holdings of TECD. BNP Paribas Arbitrage SA raised its position in shares of Tech Data Corp. by 401.7% in the second quarter. BNP Paribas Arbitrage SA now owns 24,812 shares of the company’s stock worth $1,783,000 after buying an additional 19,866 shares during the period. Geode Capital Management LLC raised its position in shares of Tech Data Corp. by 3.6% in the first quarter. Geode Capital Management LLC now owns 394,281 shares of the company’s stock worth $30,267,000 after buying an additional 13,847 shares during the period. BlackRock Group LTD raised its position in shares of Tech Data Corp. by 13.6% in the first quarter. BlackRock Group LTD now owns 47,858 shares of the company’s stock worth $3,675,000 after buying an additional 5,746 shares during the period. State Street Corp raised its position in shares of Tech Data Corp. by 1.9% in the first quarter. State Street Corp now owns 1,296,994 shares of the company’s stock worth $99,574,000 after buying an additional 24,529 shares during the period. Finally, UBS Group AG raised its position in shares of Tech Data Corp. by 9.4% in the first quarter. UBS Group AG now owns 35,923 shares of the company’s stock worth $2,758,000 after buying an additional 3,087 shares during the period.
About Tech Data Corp.
Tech Data Corporation is a wholesale distributor of technology products. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services. It operates through the segment of distributing technology products, logistics management and other value-added services.
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