NN (NASDAQ:NNBR) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded NN (NASDAQ:NNBR) from "hold" to strong sell, joining a consensus "Reduce" rating with a $3.00 consensus target while analyst views remain mixed (one Buy, two Sell).
• NN reported a quarterly EPS loss of ($0.29) vs. $0.02 expected, with slightly below‑consensus revenue, negative net margin and ROE, and high leverage (debt/equity ~4.52), while shares trade around $1.27 with a ~$63.7M market cap.

NN (NASDAQ:NNBR - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Wednesday,Zacks.com reports.

Other analysts have also issued research reports about the stock. B. Riley Financial lowered their target price on shares of NN from $4.00 to $3.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Weiss Ratings restated a "sell (d-)" rating on shares of NN in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, NN currently has an average rating of "Reduce" and a consensus target price of $3.00.

NN Trading Down 0.8%

NASDAQ:NNBR opened at $1.27 on Wednesday. The company has a market cap of $63.74 million, a PE ratio of -1.19, a P/E/G ratio of 0.21 and a beta of 2.29. The business's 50 day moving average is $1.51 and its two-hundred day moving average is $1.67. The company has a quick ratio of 1.09, a current ratio of 1.83 and a debt-to-equity ratio of 4.52. NN has a 52 week low of $1.10 and a 52 week high of $2.67.

NN (NASDAQ:NNBR - Get Free Report) last issued its quarterly earnings results on Wednesday, March 4th. The industrial products company reported ($0.29) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.31). The firm had revenue of $104.72 million during the quarter, compared to the consensus estimate of $105.36 million. NN had a negative net margin of 8.05% and a negative return on equity of 0.98%. On average, analysts predict that NN will post -0.2 EPS for the current year.

Hedge Funds Weigh In On NN

Several hedge funds and other institutional investors have recently modified their holdings of NNBR. Catalyst Funds Management Pty Ltd bought a new position in shares of NN during the second quarter worth about $27,000. Two Sigma Investments LP bought a new stake in NN in the 3rd quarter valued at about $27,000. Hudson Bay Capital Management LP acquired a new position in NN during the 2nd quarter valued at about $29,000. Quadrature Capital Ltd acquired a new position in NN during the 2nd quarter valued at about $40,000. Finally, Virtu Financial LLC bought a new position in NN in the 4th quarter worth about $30,000. Institutional investors and hedge funds own 53.92% of the company's stock.

NN Company Profile

NN, Inc NASDAQ: NNBR is a diversified industrial manufacturing company specializing in engineered metal components, powder metal parts and friction materials. Through its subsidiaries, the company develops and produces precision-rolled products for powertrain and chassis applications, engineered friction products for brake and transmission systems, and various metal powders used in automotive, industrial and energy markets. Its offerings span a wide range of component sizes and complexity, from thin‐gauge strips for hybrid and electric vehicle applications to high‐volume sintered parts for commercial and consumer products.

The company's operations are organized into three business segments.

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