Informatica (NYSE:INFA) Sets New 12-Month Low on Disappointing Earnings

Informatica Inc. (NYSE:INFA - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $16.38 and last traded at $17.30, with a volume of 2772411 shares trading hands. The stock had previously closed at $25.17.

The technology company reported $0.21 earnings per share (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.

Informatica declared that its board has approved a share buyback plan on Wednesday, October 30th that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the technology company to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms have issued reports on INFA. The Goldman Sachs Group downgraded Informatica from a "buy" rating to a "neutral" rating and decreased their price objective for the stock from $38.00 to $20.00 in a report on Friday. JPMorgan Chase & Co. decreased their price target 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. Royal Bank of Canada cut shares of Informatica from an "outperform" rating to a "sector perform" rating and lowered their price target for the company from $35.00 to $19.00 in a research report on Friday. Robert W. Baird restated a "neutral" rating and issued a $19.00 price objective (down previously from $35.00) on shares of Informatica in a report on Friday. Finally, UBS Group lowered their target price on shares of Informatica from $30.00 to $19.00 and set a "neutral" rating for the company in a report on Friday. Eleven research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $24.67.

Insider Buying and Selling at Informatica

In other Informatica news, EVP John Arthur Schweitzer sold 10,734 shares of the stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $27.05, for a total value of $290,354.70. Following 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Mark Pellowski sold 10,035 shares of the firm'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 transaction 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 approximately $3,747,187.62. The trade was 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

Institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. lifted its stake in Informatica by 35.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 2,556 shares of the technology company's stock worth $66,000 after purchasing an additional 667 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd raised its position in shares of Informatica by 11.4% during the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 7,935 shares of the technology company's stock valued at $201,000 after buying an additional 810 shares in the last quarter. Verdence Capital Advisors LLC lifted its holdings in shares of Informatica by 10.6% in the 3rd quarter. Verdence Capital Advisors LLC now owns 10,387 shares of the technology company's stock valued at $263,000 after acquiring an additional 993 shares during the last quarter. ORG Wealth Partners LLC purchased a new position in Informatica in the fourth quarter worth about $32,000. Finally, KBC Group NV increased its stake in Informatica by 69.4% during the fourth quarter. KBC Group NV now owns 3,235 shares of the technology company's stock worth $84,000 after acquiring an additional 1,325 shares during the last quarter. Institutional investors own 98.45% of the company's stock.

Informatica Stock Performance

The firm has a market capitalization of $6.21 billion, a PE ratio of 96.84, a P/E/G ratio of 3.65 and a beta of 0.99. The business has a 50-day simple moving average of $25.53 and a 200-day simple moving average of $25.45. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.17 and a quick ratio of 2.17.

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.