Royal Bank of Canada Downgrades Informatica (NYSE:INFA) to Sector Perform

Informatica (NYSE:INFA) was downgraded by analysts at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating in a research report issued to clients and investors on Friday, Marketbeat.com reports. They presently have a $19.00 target price on the technology company’s stock, down from their prior target price of $35.00. Royal Bank of Canada’s price objective would indicate a potential downside of 2.99% from the company’s current price.

Several other research firms have also recently commented on INFA. Wells Fargo & Company restated an “equal weight” rating and set a $19.00 price target (down from $34.00) on shares of Informatica in a report on Friday. Truist Financial initiated coverage on shares of Informatica in a research note on Thursday, December 12th. They issued a “buy” rating and a $34.00 price objective for the company. Guggenheim reaffirmed a “buy” rating and issued a $37.00 price objective on shares of Informatica in a research note on Friday, January 31st. JPMorgan Chase & Co. reduced their price objective on shares of Informatica from $38.00 to $34.00 and set an “overweight” rating for the company in a research note on Friday, October 25th. Finally, UBS Group lifted their price objective on shares of Informatica from $27.00 to $30.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Eleven analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $26.17.

Informatica Trading Down 22.2 %

Informatica stock opened at $19.59 on Friday. The company’s fifty day simple moving average is $25.65 and its 200-day simple moving average is $25.47. The company has a quick ratio of 2.17, a current ratio of 2.17 and a debt-to-equity ratio of 0.75. Informatica has a 12 month low of $16.37 and a 12 month high of $39.80. The stock has a market cap of $5.98 billion, a P/E ratio of 93.27, a P/E/G ratio of 3.65 and a beta of 0.99.

Informatica (NYSE:INFA) last posted its quarterly earnings results on Thursday, February 13th. The technology company reported $0.21 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.17). Informatica had a net margin of 3.89% and a return on equity of 5.29%. The company had revenue of $428.31 million for the quarter, compared to analysts’ expectations of $457.55 million. As a group, sell-side analysts forecast that Informatica will post 0.43 EPS for the current fiscal year.

Informatica declared that its board has authorized a share buyback program on Wednesday, October 30th that permits the company to buyback $400.00 million in shares. This buyback authorization permits the technology company to buy up to 5.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, EVP John Arthur Schweitzer sold 10,734 shares of the company’s stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $27.05, for a total transaction 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 approximately $9,569,694.90. This represents a 2.94 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Mark Pellowski sold 10,035 shares of the company’s stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $27.06, for a total transaction of $271,547.10. Following the transaction, the chief accounting officer now directly owns 138,477 shares of the company’s stock, valued at $3,747,187.62. This represents a 6.76 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 48.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Wellington Management Group LLP raised its position in shares of Informatica by 13.8% during the fourth quarter. Wellington Management Group LLP now owns 13,155,084 shares of the technology company’s stock valued at $341,111,000 after buying an additional 1,591,037 shares during the last quarter. Vanguard Group Inc. increased its stake in Informatica by 28.6% in the fourth quarter. Vanguard Group Inc. now owns 10,844,546 shares of the technology company’s stock valued at $281,199,000 after acquiring an additional 2,409,023 shares during the period. FIL Ltd increased its stake in Informatica by 0.9% in the fourth quarter. FIL Ltd now owns 10,449,229 shares of the technology company’s stock valued at $270,949,000 after acquiring an additional 93,685 shares during the period. FMR LLC increased its stake in Informatica by 126,639.2% in the fourth quarter. FMR LLC now owns 10,369,799 shares of the technology company’s stock valued at $268,889,000 after acquiring an additional 10,361,617 shares during the period. Finally, Allspring Global Investments Holdings LLC increased its stake in Informatica by 16.6% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 8,211,119 shares of the technology company’s stock valued at $209,075,000 after acquiring an additional 1,168,158 shares during the period. Institutional investors and hedge funds own 98.45% of the company’s stock.

About Informatica

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.