Informatica (NYSE:INFA) Hits New 1-Year Low Following Weak Earnings

Shares of Informatica Inc. (NYSE:INFA) reached a new 52-week low during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $16.38 and last traded at $17.30, with a volume of 2772411 shares changing hands. The stock had previously closed at $25.17.

The technology company reported $0.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.17). Informatica had a return on equity of 5.29% and a net margin of 3.89%.

Informatica declared that its Board of Directors has initiated a share buyback program on Wednesday, October 30th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the technology company to buy up to 5.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft cut shares of Informatica from a “buy” rating to a “hold” rating and set a $21.00 price target on the stock. in a research note on Friday. Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 target price (down previously from $34.00) on shares of Informatica in a research report on Friday. Truist Financial initiated coverage on Informatica in a research report on Thursday, December 12th. They issued a “buy” rating and a $34.00 target price for the company. Robert W. Baird reissued a “neutral” rating and issued a $19.00 target price (down previously from $35.00) on shares of Informatica in a research report on Friday. Finally, Royal Bank of Canada lowered shares of Informatica from an “outperform” rating to a “sector perform” rating and reduced their price target for the company from $35.00 to $19.00 in a research report on Friday. Nine research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $27.92.

Insider Activity at Informatica

In other Informatica news, CAO Mark Pellowski sold 10,035 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $27.06, for a total value of $271,547.10. Following the completion of the transaction, the chief accounting officer now directly owns 138,477 shares in the company, valued at $3,747,187.62. This represents a 6.76 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP John Arthur Schweitzer sold 10,734 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $27.05, for a total value of $290,354.70. Following the completion of the transaction, the executive vice president now owns 353,778 shares of the company’s stock, valued at $9,569,694.90. The trade was a 2.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 48.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Charles Schwab Investment Management Inc. boosted its position in shares of Informatica by 62.9% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 615,958 shares of the technology company’s stock valued at $15,571,000 after acquiring an additional 237,876 shares during the last quarter. Summit Partners Public Asset Management LLC bought a new position in shares of Informatica during the 3rd quarter valued at approximately $2,781,000. Wellington Management Group LLP boosted its position in shares of Informatica by 29.9% during the 3rd quarter. Wellington Management Group LLP now owns 11,564,047 shares of the technology company’s stock valued at $292,339,000 after acquiring an additional 2,662,379 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of Informatica by 826.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,484,147 shares of the technology company’s stock valued at $37,519,000 after acquiring an additional 1,324,006 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Informatica by 34.5% during the 3rd quarter. Geode Capital Management LLC now owns 1,213,188 shares of the technology company’s stock valued at $30,677,000 after acquiring an additional 311,003 shares during the last quarter. 98.45% of the stock is currently owned by institutional investors.

Informatica Stock Down 30.8 %

The company has a current ratio of 2.17, a quick ratio of 2.17 and a debt-to-equity ratio of 0.75. The stock has a market capitalization of $5.32 billion, a P/E ratio of 83.24, a P/E/G ratio of 3.65 and a beta of 0.99. The business has a 50-day moving average price of $25.84 and a 200 day moving average price of $25.50.

Informatica Company Profile

Informatica Inc develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. Its platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality and observability products to profile, cleanse, standardize, observe, and monitor data to deliver accurate, complete, and consistent data; and master data management products to create an authoritative single source of truth of business-critical data.