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

Informatica (NYSE:INFA - Get Free Report) was downgraded by equities researchers at Royal Bank of Canada from an "outperform" rating to a "sector perform" rating in a research note issued to investors on Friday, MarketBeat reports. They presently have a $19.00 price objective on the technology company's stock, down from their previous price objective of $35.00. Royal Bank of Canada's price target would suggest a potential downside of 6.57% from the stock's current price.

Several other equities analysts have also commented on INFA. Robert W. Baird reiterated a "neutral" rating and issued a $19.00 price target (down from $35.00) on shares of Informatica in a research note on Friday. Wells Fargo & Company reiterated an "equal weight" rating and issued a $19.00 price target (down from $34.00) on shares of Informatica in a research note on Friday. Truist Financial began coverage on shares of Informatica in a research note on Thursday, December 12th. They issued a "buy" rating and a $34.00 price target on the stock. Guggenheim restated a "buy" rating and set a $37.00 target price on shares of Informatica in a research report on Friday, January 31st. Finally, UBS Group raised their target price on shares of Informatica from $27.00 to $30.00 and gave the stock a "neutral" rating in a research report on Thursday, October 31st. Eleven analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $24.67.

Informatica Stock Up 3.0 %

NYSE:INFA traded up $0.59 during mid-day trading on Friday, hitting $20.34. The stock had a trading volume of 11,262,143 shares, compared to its average volume of 2,463,749. The stock has a 50-day simple moving average of $25.53 and a two-hundred day simple moving average of $25.45. The company has a market capitalization of $6.21 billion, a PE ratio of 96.84, a PEG ratio of 3.65 and a beta of 0.99. Informatica has a twelve month low of $16.37 and a twelve month high of $39.80. The company has a current ratio of 2.17, a quick ratio of 2.17 and a debt-to-equity ratio of 0.75.

Informatica (NYSE:INFA - Get Free Report) last announced 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). The company had revenue of $428.31 million during the quarter, compared to analysts' expectations of $457.55 million. Informatica had a net margin of 3.89% and a return on equity of 5.29%. On average, equities research analysts anticipate that Informatica will post 0.43 EPS for the current year.

Informatica announced that its Board of Directors has authorized a stock buyback program on Wednesday, October 30th that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the technology company to repurchase up to 5.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, CAO Mark Pellowski sold 10,035 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $27.06, for a total transaction of $271,547.10. Following the completion of the sale, the chief accounting officer now directly owns 138,477 shares of the company's stock, valued at $3,747,187.62. This trade represents a 6.76 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John Arthur Schweitzer sold 10,734 shares of the stock in a transaction 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 sale, the executive vice president now directly 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 disclosure for this sale can be found here. Corporate insiders own 48.10% of the company's stock.

Institutional Investors Weigh In On Informatica

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP lifted its holdings in Informatica by 13.8% in 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 acquiring an additional 1,591,037 shares during the period. Vanguard Group Inc. lifted its holdings 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 lifted its holdings 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 raised its stake in shares of Informatica by 126,639.2% during the 4th quarter. FMR LLC now owns 10,369,799 shares of the technology company's stock worth $268,889,000 after buying an additional 10,361,617 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC raised its stake in shares of Informatica by 16.6% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 8,211,119 shares of the technology company's stock worth $209,075,000 after buying an additional 1,168,158 shares during the last quarter. 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.