PowerFleet (NASDAQ:AIOT) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded PowerFleet from “hold” to “sell,” while other analysts also recently reduced their ratings. Despite this, the broader consensus remains “Hold,” with a $7.40 average price target.
• PowerFleet shares opened at $3.11, near the lower end of their 12-month range of $2.78 to $5.88. The company reported a quarterly loss of $0.01 per share, beating estimates, but revenue of $110.79 million fell short of expectations.
• The board authorized a $30 million share-repurchase plan, allowing the company to buy back up to 6% of its outstanding shares; institutional investors own 73.4% of the stock.

PowerFleet (NASDAQ:AIOT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Other equities analysts have also recently issued research reports about the company. Weiss Ratings cut PowerFleet from a "hold (c-)" rating to a "sell (d-)" rating in a report on Tuesday, June 16th. UBS Group set a $7.00 target price on PowerFleet in a report on Tuesday, June 16th. Northland Securities set a $7.00 price target on PowerFleet in a research report on Tuesday. Raymond James Financial downgraded PowerFleet from an "outperform" rating to a "market perform" rating in a research note on Tuesday. Finally, Craig Hallum lowered their price target on PowerFleet from $9.00 to $6.00 and set a "buy" rating on the stock in a research report on Tuesday. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $7.40.

PowerFleet Stock Performance

Shares of AIOT stock opened at $3.11 on Friday. PowerFleet has a 12 month low of $2.78 and a 12 month high of $5.88. The company's fifty day simple moving average is $3.98 and its 200-day simple moving average is $3.71. The firm has a market cap of $417.46 million, a PE ratio of -22.21 and a beta of 1.43. The company has a quick ratio of 0.99, a current ratio of 1.10 and a debt-to-equity ratio of 0.48.

PowerFleet (NASDAQ:AIOT - Get Free Report) last released its earnings results on Monday, August 10th. The company reported ($0.01) earnings per share for the quarter, beating analysts' consensus estimates of ($0.02) by $0.01. PowerFleet had a negative net margin of 4.16% and a positive return on equity of 0.48%. The business had revenue of $110.79 million during the quarter, compared to the consensus estimate of $115.54 million. Equities research analysts expect that PowerFleet will post 0.09 EPS for the current fiscal year.

PowerFleet announced that its Board of Directors has approved a share repurchase plan on Tuesday, June 30th that permits the company to repurchase $30.00 million in shares. This repurchase authorization permits the company to buy up to 6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On PowerFleet

Institutional investors and hedge funds have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in PowerFleet by 1.4% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 206,082 shares of the company's stock valued at $888,000 after purchasing an additional 2,871 shares during the last quarter. Connors Investor Services Inc. raised its stake in PowerFleet by 5.7% in the fourth quarter. Connors Investor Services Inc. now owns 56,000 shares of the company's stock valued at $298,000 after buying an additional 3,000 shares during the period. R Squared Ltd raised its stake in PowerFleet by 40.6% in the fourth quarter. R Squared Ltd now owns 16,073 shares of the company's stock valued at $86,000 after buying an additional 4,640 shares during the period. Royal Bank of Canada lifted its position in shares of PowerFleet by 76.9% in the first quarter. Royal Bank of Canada now owns 11,233 shares of the company's stock valued at $34,000 after buying an additional 4,883 shares during the last quarter. Finally, Clarus Group Inc. lifted its position in shares of PowerFleet by 26.7% in the first quarter. Clarus Group Inc. now owns 25,790 shares of the company's stock valued at $79,000 after buying an additional 5,434 shares during the last quarter. 73.40% of the stock is owned by institutional investors.

About PowerFleet

PowerFleet, Inc NASDAQ: AIOT develops and delivers Internet of Things (IoT)–based telematics and asset-tracking solutions designed to help businesses monitor, manage and optimize fleets of vehicles and industrial equipment. Its core offerings include wireless sensors, GPS tracking devices and cloud-hosted software platforms that provide real-time visibility into vehicle whereabouts, usage patterns, fuel consumption and maintenance needs. The company's systems also support regulatory compliance and safety monitoring, enabling customers to reduce operational costs, minimize theft and improve overall asset utilization.

The company's hardware portfolio features RFID readers, active and passive tags, onboard diagnostics (OBD) adapters and temperature or motion sensors that can be deployed on trucks, trailers, forklifts, containers and other high-value assets.

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