BOX (NYSE:BOX) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• BOX beat quarterly expectations, reporting EPS of $0.37 versus the $0.36 consensus estimate. Revenue also came in slightly ahead at $305.94 million compared with expectations of $304.39 million.
• The stock was down about 1% in trading after the report, despite the earnings beat. BOX also trades with a market cap of about $3.55 billion and a relatively low beta of 0.71.
• The company’s board authorized a $500 million share buyback, which could cover up to 14.2% of outstanding shares. Analysts currently rate the stock a consensus Hold, with an average target price of $35.57.

BOX (NYSE:BOX - Get Free Report) issued its earnings results on Tuesday. The software maker reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01, FiscalAI reports. BOX had a net margin of 9.80% and a negative return on equity of 23.61%. The company had revenue of $305.94 million for the quarter, compared to analysts' expectations of $304.39 million.

BOX Stock Down 1.0%

NYSE:BOX traded down $0.26 during mid-day trading on Tuesday, hitting $25.64. 4,863,017 shares of the company traded hands, compared to its average volume of 2,534,215. The stock's fifty day moving average price is $24.20 and its 200-day moving average price is $26.49. BOX has a one year low of $21.34 and a one year high of $38.80. The firm has a market cap of $3.55 billion, a price-to-earnings ratio of 43.46, a price-to-earnings-growth ratio of 1.33 and a beta of 0.71.

BOX announced that its board has initiated a stock buyback plan on Thursday, March 19th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the software maker to buy up to 14.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on BOX. Citigroup lowered their target price on BOX from $40.00 to $36.00 and set a "buy" rating on the stock in a report on Wednesday, March 4th. DA Davidson reissued a "buy" rating and issued a $45.00 target price on shares of BOX in a report on Friday, March 20th. UBS Group lowered their target price on BOX from $31.00 to $28.00 and set a "hold" rating on the stock in a report on Wednesday, March 4th. Wall Street Zen downgraded BOX from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 9th. Finally, Morgan Stanley lowered their target price on BOX from $38.00 to $33.00 and set an "equal weight" rating on the stock in a report on Thursday, March 12th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, BOX currently has an average rating of "Hold" and a consensus target price of $35.57.

Insider Buying and Selling at BOX

In other BOX news, VP Eli Berkovitch sold 24,500 shares of BOX stock in a transaction that occurred 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 owned 95,516 shares of the company's stock, valued at $2,278,056.60. The trade was a 20.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Dylan C. Smith sold 23,720 shares of BOX stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $24.96, for a total transaction of $592,051.20. Following the transaction, the chief financial officer directly owned 1,381,049 shares in the company, valued at $34,470,983.04. This represents a 1.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 137,086 shares of company stock valued at $3,345,852 in the last ninety days. 3.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. XTX Topco Ltd boosted its holdings in shares of BOX by 283.2% during the 4th quarter. XTX Topco Ltd now owns 99,652 shares of the software maker's stock valued at $2,981,000 after purchasing an additional 73,645 shares during the last quarter. Voloridge Investment Management LLC raised its holdings in shares of BOX by 76.2% during the 4th quarter. Voloridge Investment Management LLC now owns 681,785 shares of the software maker's stock worth $20,392,000 after acquiring an additional 294,954 shares in the last quarter. Toronto Dominion Bank purchased a new stake in shares of BOX during the 4th quarter worth approximately $60,000. Tudor Investment Corp ET AL raised its holdings in shares of BOX by 294.9% during the 4th quarter. Tudor Investment Corp ET AL now owns 449,973 shares of the software maker's stock worth $13,459,000 after acquiring an additional 336,023 shares in the last quarter. Finally, Numerai GP LLC raised its holdings in shares of BOX by 152.4% during the 4th quarter. Numerai GP LLC now owns 46,524 shares of the software maker's stock worth $1,392,000 after acquiring an additional 28,091 shares in the last quarter. Institutional investors own 86.74% of the company's stock.

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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