Logitech International (NASDAQ:LOGI) Shares Gap Down - Should You Sell?

Key Points

• Logitech shares plunged from a $111.82 close to a $99.89 open, shedding roughly $2 billion in market value as margin concerns and profit-taking overshadowed a strong earnings report.
• The company reported fiscal second-quarter EPS of $1.51, beating the $1.34 consensus, while revenue rose 2.8% year over year to $1.22 billion, supported by gaming and conferencing products.
• Analyst sentiment remains cautious: Logitech has a consensus “Hold” rating and a $104.14 price target, with several firms recently cutting targets and management issuing a third-quarter outlook for investors to assess.

Logitech International S.A. (NASDAQ:LOGI - Get Free Report)'s stock price gapped down before the market opened on Wednesday. The stock had previously closed at $111.82, but opened at $99.89. Logitech International shares last traded at $99.9850, with a volume of 582,605 shares.

Logitech International News Summary

Here are the key news stories impacting Logitech International this week:

• Positive Sentiment: Logitech reported fiscal second-quarter earnings of $1.51 per share, ahead of the $1.34 consensus estimate, while revenue increased 2.8% year over year to $1.22 billion, slightly exceeding expectations. Logitech Announces Q2 Fiscal Year 2027 Results
• Positive Sentiment: Growth in gaming and conferencing products supported the quarter, helping Logitech deliver a year-over-year increase in earnings despite only modest overall revenue growth. Logitech beats profit forecast as sales of gaming, conferencing products rise
• Neutral Sentiment: Management issued a third-quarter outlook following the results. Investors are likely to compare the forecast with the company’s longer-term growth and margin expectations. Logitech International Fiscal Q2 Non-GAAP Earnings, Revenue Rise; Issues Q3 Outlook
• Neutral Sentiment: A group of 10 analysts had a consensus price target of approximately $104.14, suggesting limited upside from the stock’s recent trading range. Ten analysts set a USD 104.14 consensus for Logitech stock
• Negative Sentiment: Shares fell sharply after the report, with Logitech losing roughly $2 billion in market value. Analysts cited profit-taking and concerns that margins may be under pressure, overshadowing the better-than-expected profit and revenue figures. Logitech sheds $2 billion market cap as margin concerns overshadow profit beat

Wall Street Analyst Weigh In

LOGI has been the topic of a number of recent analyst reports. Barclays decreased their target price on shares of Logitech International from $105.00 to $101.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 29th. JPMorgan Chase & Co. dropped their price target on shares of Logitech International from $102.00 to $94.00 and set a "neutral" rating for the company in a research report on Tuesday, October 13th. Weiss Ratings downgraded shares of Logitech International from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday. Morgan Stanley decreased their price objective on shares of Logitech International from $89.00 to $88.00 and set an "underweight" rating on the stock in a report on Wednesday, July 8th. Finally, Wedbush lowered their price objective on shares of Logitech International from $135.00 to $130.00 and set an "outperform" rating for the company in a research report on Wednesday, July 29th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $104.14.

Logitech International Stock Performance

The company has a 50 day moving average of $102.01 and a 200-day moving average of $99.71. The stock has a market cap of $14.72 billion, a price-to-earnings ratio of 18.22 and a beta of 1.14.

Logitech International (NASDAQ:LOGI - Get Free Report) last released its earnings results on Tuesday, October 27th. The technology company reported $1.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.17. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. Logitech International's quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter last year, the company earned $1.45 earnings per share. On average, research analysts anticipate that Logitech International S.A. will post 5.14 EPS for the current year.

Insiders Place Their Bets

In related news, insider Samantha Harnett sold 16,265 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $101.35, for a total transaction of $1,648,457.75. Following the transaction, the insider owned 37,097 shares in the company, valued at $3,759,780.95. This trade represents a 30.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.15% of the stock is currently owned by company insiders.

Institutional Trading of Logitech International

A number of hedge funds have recently added to or reduced their stakes in LOGI. Rockefeller Capital Management L.P. boosted its holdings in shares of Logitech International by 15.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 861 shares of the technology company's stock valued at $86,000 after acquiring an additional 114 shares in the last quarter. Fifth Third Bancorp lifted its position in shares of Logitech International by 19.1% during the 1st quarter. Fifth Third Bancorp now owns 903 shares of the technology company's stock valued at $82,000 after acquiring an additional 145 shares during the period. Allspring Global Investments Holdings LLC lifted its position in shares of Logitech International by 4.4% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 4,019 shares of the technology company's stock valued at $364,000 after acquiring an additional 171 shares during the period. Frank Rimerman Advisors LLC boosted its stake in shares of Logitech International by 2.8% during the 1st quarter. Frank Rimerman Advisors LLC now owns 11,717 shares of the technology company's stock worth $1,068,000 after acquiring an additional 317 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in Logitech International by 14.8% during the first quarter. EverSource Wealth Advisors LLC now owns 2,485 shares of the technology company's stock worth $226,000 after purchasing an additional 320 shares in the last quarter. 45.76% of the stock is owned by institutional investors and hedge funds.

Logitech International Company Profile

Logitech International designs and manufactures hardware and software that connect people to digital devices and support communication, collaboration, content creation and gaming. Its products are sold under the Logitech brand and are used by consumers, businesses, educators, gamers and other professional users worldwide.

The company's portfolio includes computer mice and keyboards, webcams, headsets, microphones, speakers, video-conferencing systems, presentation tools and gaming peripherals.

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