BOX (NYSE:BOX) Hits New 12-Month Low - What's Next?

Key Points

• Box hit a new 52-week low at $21.53 on Friday, trading down about 4% and below its 50- and 200-day moving averages ($24.00 and $28.28) with a market cap near $2.98 billion.
• Box beat the quarter with EPS of $0.49 (vs. $0.33 est.) and revenue of $305.9M (up 9.4% YoY), and its board authorized a $500M share buyback (≈14.2% of shares outstanding), signaling management views the stock as undervalued.
• Analysts are mixed — consensus rating is Hold with a $35.57 target amid several downgrades/target cuts (UBS to $28) — while insiders have been selling recently even though institutional ownership remains high (~86.7%).

Box, Inc. (NYSE:BOX - Get Free Report)'s share price reached a new 52-week low on Friday . The company traded as low as $21.53 and last traded at $21.5850, with a volume of 1646971 shares trading hands. The stock had previously closed at $22.44.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Wall Street Zen downgraded shares of BOX from a "strong-buy" rating to a "buy" rating in a research report on Saturday, March 28th. William Blair reaffirmed a "market perform" rating on shares of BOX in a research report on Monday, March 23rd. DA Davidson reaffirmed a "buy" rating and issued a $45.00 target price on shares of BOX in a research report on Friday, March 20th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of BOX in a research report on Monday, December 29th. Finally, UBS Group decreased their target price on shares of BOX from $31.00 to $28.00 and set a "hold" rating for the company in a research report on Wednesday, March 4th. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, BOX has a consensus rating of "Hold" and a consensus target price of $35.57.

BOX Stock Down 4.0%

The firm has a market capitalization of $2.98 billion, a price-to-earnings ratio of 36.50, a P/E/G ratio of 1.19 and a beta of 0.71. The stock's fifty day moving average is $24.00 and its two-hundred day moving average is $28.28.

BOX (NYSE:BOX - Get Free Report) last issued its earnings results on Tuesday, March 3rd. The software maker reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.33 by $0.16. The business had revenue of $305.88 million for the quarter, compared to the consensus estimate of $305.64 million. BOX had a net margin of 9.80% and a negative return on equity of 23.61%. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.42 earnings per share. As a group, analysts anticipate that Box, Inc. will post 0.27 EPS for the current year.

BOX declared that its Board of Directors has authorized a share buyback program on Thursday, March 19th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the software maker to repurchase up to 14.2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at BOX

In related news, VP Eli Berkovitch sold 24,500 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $23.85, for a total transaction of $584,325.00. Following the transaction, the vice president directly owned 95,516 shares in the company, valued at approximately $2,278,056.60. The trade was a 20.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Dylan C. Smith sold 17,000 shares of the business's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $24.75, for a total transaction of $420,750.00. Following the transaction, the chief financial officer owned 1,311,195 shares in the company, valued at approximately $32,452,076.25. The trade was a 1.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 106,286 shares of company stock valued at $2,605,142 in the last 90 days. Company insiders own 3.90% of the company's stock.

Hedge Funds Weigh In On BOX

Institutional investors and hedge funds have recently modified their holdings of the stock. First Horizon Corp increased its holdings in shares of BOX by 148.1% in the fourth quarter. First Horizon Corp now owns 831 shares of the software maker's stock valued at $25,000 after purchasing an additional 496 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of BOX in the fourth quarter valued at $26,000. Geneos Wealth Management Inc. acquired a new position in shares of BOX in the first quarter valued at $31,000. Salomon & Ludwin LLC acquired a new position in shares of BOX in the third quarter valued at $32,000. Finally, Employees Retirement System of Texas acquired a new position in shares of BOX in the third quarter valued at $35,000. 86.74% of the stock is currently owned by institutional investors and hedge funds.

About BOX

Box, Inc is a leading provider of cloud content management and file sharing solutions designed to support enterprises in securely managing, accessing and collaborating on digital content from anywhere. The company offers a unified platform that enables organizations to store, share and automate workflows across various departments, enhancing productivity and ensuring governance over sensitive information. Box's services are tailored to meet the needs of industries such as healthcare, financial services, government and media, where compliance and data security are paramount.

The core offerings of Box include its Content Cloud platform, which provides content collaboration, workflow automation, data classification and secure file sharing.

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