Tech Data Corporation (TECD) Gets A Negative Analyst Call From Stifel

It has been reported that multiple insider activity took place at Tech Data Corporation (TECD). Exec VP, Chief Legal Officer VETTER DAVID R sold 2,000 shares for $37,758 in transaction occurred on 2019/04/12. After making this transaction, Exec VP, Chief Legal Officer owns a direct stake of -9 shares, worth $3,765,983, as per the last closing price. On 2019/04/11 DUTKOWSKY ROBERT M, Director at TECD, dumped 22,900 shares at an average price of $108.02 per share. The selling total is valued at $21,137,898.

Exec VP, CFO, DANNEWITZ CHARLES V had divested 2,500 shares for $21,897 through a trade on 2019/04/10. Following this activity, the insider holds -6 shares worth $2,184,007 as of recent close.

DFA U.S. Small Cap Value Series revealed as top hedge fund owner in Tech Data Corporation (TECD) with a stake of over 1.12M TECD shares as of October 30, with a market value of approx. $79.24M as of today. The second largest holder, iShares Core S&P Midcap ETF, with 1.08M shares which equates to $110.29M worth of the stock. At third is Vanguard Small-Cap Index Fund, which stood pat with 980337 shares, a 1.9% position in Tech Data Corporation, worth $70.16M. The insider holding in stood at 1.3% while institutions hold 0%.

Tech Data Corporation (NASDAQ:TECD) rose 0.86% in recent trade and currently has a stock-market value of $3.7B. The shares finished at $99.74, after trading as low as $98.1 earlier in the session. It hit an intraday high Wednesday at $99.885. Trading activity significantly improved as the volume at ready counter increased to 244,272 shares versus 224,600 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 366,914 shares. The stock is now 49.02% above against its bear-market low of $66.93 on October 26, 2018. It has retreated -11.37% since it’s 52-week high of $111.08 reached in April. Now the market price is up 22.41% on the year and up 21.92% YTD.

TECD stock’s 50 day simple moving average (SMA 50) price is $103.83 and its 200-day simple moving average (SMA 200) price is $88.14. The company’s stock currently has a total float of 36.59M shares. Its weekly volatility is hovering around 2.66% and felt 2.23% volatility in price over a month. On the upside, the share price will test short term resistance at around $100.38. On a downside, the stock is likely to find some support, which begins at $98.6. The failure to get near-term support could push it to $97.46.

It had seen a negative analyst call from Stifel, which downgraded the stock from Buy to Hold on April 17. Analysts at Needham, maintained the company shares at Buy on August 31 but switched target price from $115 to $100. The stock lost favor of BofA/Merrill analysts who expressed their lack of confidence in it using a downgrade from Buy to Underperform on August 31. Stifel, reiterated their call for Buy, on March 09. On the other hand, they had set new target price to $110 versus $120.

When looking at valuations, Tech Data Corporation (TECD) has a cheap P/E of 13.1x as compared to industry average of 36.82x. Moreover, it trades for 7.94 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.27x price/book and 0.1x price/sales. Compared to others, Tech Data Corporation is in a different league with regards to profitability, having net margins of 0.9%. To put some perspective around this, the industry’s average net margin is 3.63%. TECD’s ROE is 11.9%, which is also considerably worse than the industry’s ROE of 13.08%. It’s also very liquid in the near term, with a current ratio of 1.2. The stock has a debt/capital of 0.48.

Shares of TECD have dropped -1.6% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Tech Data Corporation (NASDAQ:TECD) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 4 quarters (33%), whereas at 0 occasion EPS met analyst expectations. TECD last reported earnings that exceeded expectations. The company raked in $4.55 per share, -62.49% change on the same period last year. That was better than consensus for $4.06. Revenue for the recent quarter stood at $10.46 billion, down -6% on last year and below the $10.67 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $8.7 billion to $9.18 billion, which should be compared with $8.96 billion generated last year.