N-able (NYSE:NABL) Shares Climb 5.8% - Should You Buy?

Key Points

• N-able shares rose 5.8% to about $4.34, though trading volume was 88% below the average daily level.
• Analyst sentiment remains mixed: the stock has an overall “Hold” rating, with an average price target of $5.08, while recent firms lowered targets and ratings.
• N-able matched quarterly EPS expectations at $0.10 and reported 5.3% year-over-year revenue growth; its board also authorized a $50 million share-repurchase plan covering up to 6.7% of shares.

N-able, Inc. (NYSE:NABL - Get Free Report)'s share price shot up 5.8% on Thursday. The company traded as high as $4.37 and last traded at $4.3360. Approximately 247,137 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 1,986,060 shares. The stock had previously closed at $4.10.

Wall Street Analyst Weigh In

A number of analysts have weighed in on NABL shares. Needham & Company LLC reduced their target price on N-able from $6.50 to $4.00 and set a "buy" rating on the stock in a research note on Tuesday, August 11th. Royal Bank Of Canada cut N-able from an "outperform" rating to a "sector perform" rating and dropped their target price for the company from $6.00 to $4.00 in a research report on Tuesday, August 11th. Weiss Ratings reiterated a "sell (d)" rating on shares of N-able in a research note on Friday, July 17th. Scotiabank lowered their price target on N-able from $5.75 to $3.65 and set a "sector perform" rating for the company in a report on Tuesday, August 11th. Finally, Zacks Research raised N-able from a "strong sell" rating to a "hold" rating in a research report on Friday, August 14th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $5.08.

N-able Price Performance

The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $803.81 million, a price-to-earnings ratio of -212.75 and a beta of 0.49. The stock has a 50-day moving average price of $4.01 and a 200 day moving average price of $4.17.

N-able (NYSE:NABL - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $0.10 earnings per share for the quarter, hitting analysts' consensus estimates of $0.10. N-able had a positive return on equity of 3.55% and a negative net margin of 0.88%.The company had revenue of $138.22 million during the quarter, compared to analysts' expectations of $138.08 million. During the same quarter in the prior year, the firm posted $0.11 EPS. N-able's quarterly revenue was up 5.3% compared to the same quarter last year. As a group, equities research analysts expect that N-able, Inc. will post 0.23 earnings per share for the current year.

N-able announced that its board has initiated a share repurchase plan on Friday, August 28th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 6.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Institutional Trading of N-able

Several institutional investors have recently modified their holdings of NABL. Hantz Financial Services Inc. lifted its stake in N-able by 179.8% in the 4th quarter. Hantz Financial Services Inc. now owns 3,277 shares of the company's stock valued at $25,000 after buying an additional 2,106 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new position in shares of N-able during the first quarter valued at approximately $48,000. PNC Financial Services Group Inc. raised its holdings in shares of N-able by 251.7% during the first quarter. PNC Financial Services Group Inc. now owns 13,983 shares of the company's stock valued at $65,000 after acquiring an additional 10,007 shares during the last quarter. Fifth Third Bancorp lifted its position in shares of N-able by 988.2% in the first quarter. Fifth Third Bancorp now owns 19,414 shares of the company's stock valued at $91,000 after acquiring an additional 17,630 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd acquired a new stake in shares of N-able in the first quarter worth approximately $92,000. Institutional investors and hedge funds own 96.35% of the company's stock.

About N-able

N-able, Inc is a software company that provides cloud-based technology solutions for managed service providers (MSPs). Its platform helps MSPs monitor, manage, secure and support the information technology environments of small and medium-sized businesses, enabling providers to deliver services remotely and at scale.

The company's offerings include remote monitoring and management, endpoint management, data protection and backup, cybersecurity, email security, password management, and professional services automation tools.

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