Ingram Micro (NYSE:INGM) Shares Up 4.8% - Still a Buy?

Key Points

• Ingram Micro shares rose 4.8% to about $29.35 in mid-day trading, while trading volume was 63% below average. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $30.50.
• The company reported quarterly earnings of $0.91 per share, beating the $0.78 consensus estimate, and revenue of $15.22 billion, above expectations of $13.83 billion.
• Ingram Micro increased its quarterly dividend to $0.088 per share, equivalent to an annualized yield of about 1.2%.

Ingram Micro Holding Corporation (NYSE:INGM - Get Free Report)'s stock price was up 4.8% during mid-day trading on Thursday. The company traded as high as $28.90 and last traded at $29.3450. 535,982 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 1,431,033 shares. The stock had previously closed at $28.00.

Analysts Set New Price Targets

Several brokerages recently commented on INGM. Zacks Research raised shares of Ingram Micro from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, November 3rd. Deutsche Bank began coverage on Ingram Micro in a report on Monday, August 31st. They set a "hold" rating and a $30.00 price objective for the company. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $33.00 target price on shares of Ingram Micro in a research report on Friday, July 31st. Morgan Stanley reduced their target price on Ingram Micro from $33.00 to $30.00 and set an "equal weight" rating on the stock in a report on Wednesday, September 16th. Finally, Weiss Ratings raised Ingram Micro from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, October 30th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Ingram Micro currently has an average rating of "Moderate Buy" and a consensus target price of $30.50.

Ingram Micro Price Performance

The company's fifty day moving average is $27.25 and its 200 day moving average is $26.54. The company has a quick ratio of 0.88, a current ratio of 1.31 and a debt-to-equity ratio of 0.65. The stock has a market cap of $6.71 billion, a PE ratio of 14.73, a price-to-earnings-growth ratio of 0.59 and a beta of 1.69.

Ingram Micro (NYSE:INGM - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.13. Ingram Micro had a net margin of 0.79% and a return on equity of 18.76%. The company had revenue of $15.22 billion during the quarter, compared to the consensus estimate of $13.83 billion. During the same period in the previous year, the firm earned $0.72 earnings per share. As a group, sell-side analysts anticipate that Ingram Micro Holding Corporation will post 3.58 earnings per share for the current fiscal year.

Ingram Micro Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Monday, November 9th will be issued a dividend of $0.0880 per share. This represents a $0.35 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Monday, November 9th. This is a positive change from Ingram Micro's previous quarterly dividend of $0.0860. Ingram Micro's dividend payout ratio (DPR) is presently 17.68%.

Insiders Place Their Bets

In related news, major shareholder Platinum Equity, Llc sold 1,968,750 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $27.19, for a total value of $53,530,312.50. Following the completion of the sale, the insider directly owned 162,372,569 shares in the company, valued at approximately $4,414,910,151.11. This represents a 1.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.95% of the company's stock.

Institutional Investors Weigh In On Ingram Micro

Several hedge funds have recently modified their holdings of the stock. State Street Corp raised its stake in shares of Ingram Micro by 13.1% during the third quarter. State Street Corp now owns 890,412 shares of the company's stock valued at $23,872,000 after purchasing an additional 103,102 shares during the period. Danske Bank A S acquired a new position in shares of Ingram Micro during the third quarter worth $44,236,000. Diversified Trust Co purchased a new position in shares of Ingram Micro in the third quarter valued at $502,000. Machina Capital S.A.S. boosted its stake in shares of Ingram Micro by 6.6% in the third quarter. Machina Capital S.A.S. now owns 19,289 shares of the company's stock valued at $517,000 after purchasing an additional 1,200 shares during the period. Finally, Fulcrum Asset Management LLP purchased a new position in shares of Ingram Micro in the third quarter valued at $473,000.

Ingram Micro Company Profile

Ingram Micro is a global technology distributor and services provider that connects technology manufacturers with businesses and channel partners. Its customers include resellers, system integrators, managed service providers and retailers. The company distributes products and solutions across areas such as computing, networking, data centers, cybersecurity and cloud services. It also provides logistics, financing, technical support and other services that help partners sell, deploy and manage technology.

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