Box Inc. (BOX): Street Finally Waking Up


BlackRock Fund Advisors recently announced the acquisition of new stake in Box Inc. (NYSE:BOX). The institutional investor has increased its shareholding in the Technology company by 1.14% to 10.19 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 6.64% valued currently at $182.88 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.33 million to 3.76 million shares. And Two Sigma Investments LP has lifted its position by 140.19% or 1.78 million shares – to 3.05 million shares.

With over 2.0 million Box Inc. (BOX) shares trading Tuesday and a closing price of $20.05 on the day, the dollar volume was approximately $40.02 million. The shares have shown a positive weekly performance of 11.20% and its price on 09/01/20 gained nearly 2.14%. Currently, there are 151.94M common shares owned by the public and among those 148.27M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for BOX have a consensus price objective of $24.75. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $18.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Box Inc. stock is 2.20 for the next 12 months. The average price target is 20.72% above its last price level and an upside to the estimated low will see the stock lose -11.39% over that period. But an upside of 33.17% will see the stock hit the forecast high price target while mean target price for the stock is $24.50.

Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 23 of these insider trades were purchases, accounting for 1,274,979 shares. Insider sales of the common stock occurred on 28 occasions, with total insider shares sold totaling 695,956 shares.

The top 3 mutual fund holders in Box Inc. are First Trust Dow Jones Internet In, Vanguard Total Stock Market Index, and Fidelity Funds SICAV – Global Tec. First Trust Dow Jones Internet In owns 4.55 million shares of the company’s stock, all valued at over $81.64 million. The company sold 9299.0 shares recently to bring their total holdings to about 2.96% of the shares outstanding. Vanguard Total Stock Market Index sold 2967.0 shares to see its total holdings shrink to 4.1 million shares valued at over $73.68 million and representing 2.68% of the shares outstanding. Fidelity Funds SICAV – Global Tec bought 351.0 shares to bring its total holdings to over 3.83 million shares at a value of $68.73 million. Fidelity Funds SICAV – Global Tec now owns shares totaling to 2.50% of the shares outstanding.

Shares of Box Inc. (NYSE: BOX) opened at $19.50, down -$0.13 from a prior closing price of $19.63. However, the script later closed the day at $20.05, up 2.14%. The company’s stock has a 5-day price change of 11.20% and 5.36% over the past three months. BOX shares are trading 19.49% year to date (YTD), with the 12-month market performance up to 35.02% higher. It has a 12-month low price of $8.64 and touched a high of $22.09 over the same period. Currently, 2.0 million shares have been traded, compared to an average intraday trading volume of 2.59 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 10.99%, 5.79%, and 18.86% respectively.

Institutional ownership of Box Inc. (NYSE: BOX) shares accounts for 81.20% of the company’s 151.94M shares outstanding. Mutual fund holders own 42.27%, while other institutional holders and individual stakeholders account for 9.42% and 38.07% respectively.

It has a market capitalization of $3.17B and a beta (3y monthly) value of 1.18. The earnings-per-share (ttm) stands at -$0.70. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.31% over the week and 3.53% over the month.

Analysts forecast that Box Inc. (BOX) will achieve an EPS of $0.14 for the current quarter, $0.15 for the next quarter and $0.72 for 2022. The lowest estimate earnings-per-share for the quarter is $0.14 while analysts give the company a high EPS estimate of $0.15. Comparatively, EPS for the current quarter was -$0.01 a year ago. Earnings per share for the fiscal year are expected to decrease by -3.40%, and 26.48% over the next financial year. EPS should shrink at an annualized rate of 8.00% over the next five years, compared to 8.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Box Inc. (BOX) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 2 of the 11 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the BOX, a number of firms have released research notes about the stock. Craig Hallum stated their Buy rating for the stock in a research note on May 28, 2020, with the firm’s price target at $24. Wells Fargo coverage for the Box Inc. (BOX) stock in a research note released on May 28, 2020 offered a Overweight rating with a price target of $25. Raymond James was of a view on May 28, 2020 that the stock is Outperform, while Morgan Stanley gave the stock Overweight rating on May 28, 2020, issuing a price target of $21- $23. Berenberg on their part issued Buy rating on March 31, 2020.


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