The disclosure made by TD Asset Management Inc stating a reduction of Equinix, Inc. (NASDAQ:EQIX) shares by 6.8% in the fourth quarter has gathered much attention in the financial services industry. TD Asset Management’s decision to cut ties with almost 20,000 shares of Equinix resulted from a strategic move within their investment portfolio that was done in compliance with the latest directive from the Securities and Exchange Commission (SEC). It reduced TD Asset Management Inc’s holdings to 250,854, which were estimated at $177,417,000 according to the firm’s recent SEC filing.
Equinix’s most recent quarterly earnings data released on February 15th did not meet analysts’ expectations. They reported an EPS of $1.39 for the quarter while missing out on consensus EPS estimates by ($4.51), causing investors to raise questions about the company’s performance and future course of action. The company had revenues of $1.87 billion during the quarter representing a growth of 9.6% compared to previous year figures.
Several equities analysts have issued reports on EQIX shares post earnings results, with some giving ‘buy’ ratings and others placing a neutral stand or rating it as strong buy. Morgan Stanley gave EQIX a price objective of $714 while Credit Suisse Group cut down its price objective on shares of Equinix from an earlier $762 to a modified figure of $753 rating EQIX as “neutral.”
TD securities also upped EQIX’s price objective from an earlier $750 to $800 and gave them a hold rating while Citigroup graciously increased their target price from an initial value of $750 to as high as $825 and gave them a ‘buy’ rating based on their strong belief in the financial prospects of Equinix.
As per Bloomberg.com’s report, Equinix has an average rating status listed as moderate buy alongside an average price target of $781.61, which indicates how market watchers view the company’s potential in the nearest possible future. The pressure is now on Equinix to deliver much-desired positive results that will justify a good rating and attract more investors from the financial services sector.
Equinix, Inc.: A Leading Financial Services Provider Attracting Hedge Funds and Institutional Investors
Equinix, Inc. is a leading financial services provider that has become a favorite among hedge funds and institutional investors alike. The company’s stock trades on NASDAQ: EQIX and recently traded at $722.55, with 126,595 shares exchanged on Friday, April 28th. The company’s market capitalization currently stands at $67.57 billion with a price-to-earnings ratio of 93.73 and beta of 0.63.
Several equity analysts recently issued reports on EQIX, with an average rating of “Moderate Buy” and an average price target of $781.61 according to Bloomberg.com. Morgan Stanley upped its price objective from $702 to $714 and gave the company an “equal weight” rating in its report on April 20th.
Equinix also recently declared a quarterly dividend increase from $3.10 to $3.41 per share payable to shareholders on March 22nd for stockholders of record as of March 7th representing a dividend yield of 1.89%. This dividend increase was subsequent to insiders selling more than 7,500 shares valued at over $5 million in the last three months.
Despite these events, offshore asset management companies such as Mitsubishi UFJ Kokusai Asset Management Co., Ltd., Daiwa Securities Group Inc., and Oppenheimer Asset Management Inc., along with US-based firms such as Savant Capital LLC and TCI Wealth Advisors Inc have either increased or decreased their stakes in the company.
Mitsubishi UFJ Kokusai Asset Management Co., Ltd now owns one percent more stake equating to $74.64 million worth after acquiring an additional 11,399 shares since the fourth quarter last year when it bought those same number shares.
Oppenheimer Asset Management Inc increased its holdings by a mere 1.7% between Q4 but the impact was not significant with the fund owning a total of 7.670 shares worth $5,024,000.
Savant Capital LLC had the biggest absolute increase in percentage stake among these firms at 19.8%. The firm now owns 653 shares worth $418,000 after adding 108 shares to its portfolio compared to fourth quarter results.
Similarly, TCI Wealth Advisors Inc increased its stake by over 1,066% taking their number of shares from nine to 105 with a value of $69k.
Lastly, Daiwa Securities Group Inc bought an extra 58,884 shares in Q4 which is a significant increase for a firm set to have bought over half million dollars in EQIX stock. The impact of this buys means that Daiwa Securities Group now owns a total stake of $344.13 million (up from $285m) comprising well-north-of-half-a-million-Daiwa-owned shares.
Overall these hedge funds and institutional investors own approximately 92.80% of Equinix’s stock in aggregate thereby owning substantial chunks of it.