Canaccord Genuity Group Lowers Smartsheet (NYSE:SMAR) to Hold

Smartsheet (NYSE:SMAR) was downgraded by research analysts at Canaccord Genuity Group from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports.

A number of other analysts also recently issued reports on the company. Royal Bank of Canada raised their target price on Smartsheet from $51.00 to $56.50 and gave the stock a “sector perform” rating in a research report on Wednesday. JPMorgan Chase & Co. restated a “neutral” rating and issued a $56.50 price objective (down from $60.00) on shares of Smartsheet in a research note on Tuesday. Citigroup increased their target price on shares of Smartsheet from $55.00 to $63.00 and gave the stock a “buy” rating in a research report on Friday, September 6th. Canaccord Genuity Group reiterated a “hold” rating and issued a $56.50 target price (down previously from $60.00) on shares of Smartsheet in a research note on Wednesday. Finally, William Blair restated a “market perform” rating on shares of Smartsheet in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, Smartsheet presently has a consensus rating of “Hold” and an average price target of $56.47.

Smartsheet Stock Performance

SMAR opened at $55.37 on Wednesday. Smartsheet has a fifty-two week low of $35.52 and a fifty-two week high of $55.60. The firm has a 50-day moving average of $49.17 and a 200 day moving average of $43.43. The firm has a market cap of $7.69 billion, a P/E ratio of -89.30 and a beta of 0.74.

Smartsheet (NYSE:SMAR) last released its earnings results on Thursday, September 5th. The company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.15. Smartsheet had a negative net margin of 4.07% and a negative return on equity of 4.29%. The firm had revenue of $276.41 million during the quarter, compared to the consensus estimate of $274.23 million. During the same period in the prior year, the firm earned ($0.23) EPS. The company’s revenue was up 17.3% compared to the same quarter last year. Equities research analysts predict that Smartsheet will post -0.05 earnings per share for the current fiscal year.

Smartsheet declared that its Board of Directors has initiated a share repurchase plan on Thursday, September 5th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 2.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Smartsheet news, insider Jolene Lau Marshall sold 3,994 shares of the company’s stock in a transaction that occurred on Friday, July 5th. The shares were sold at an average price of $43.11, for a total transaction of $172,181.34. Following the completion of the sale, the insider now directly owns 16,567 shares of the company’s stock, valued at $714,203.37. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In related news, insider Jolene Lau Marshall sold 3,994 shares of Smartsheet stock in a transaction on Friday, July 5th. The shares were sold at an average price of $43.11, for a total transaction of $172,181.34. Following the transaction, the insider now owns 16,567 shares in the company, valued at approximately $714,203.37. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO Stephen Robert Branstetter sold 1,847 shares of the stock in a transaction dated Monday, September 16th. The stock was sold at an average price of $53.00, for a total value of $97,891.00. Following the sale, the chief operating officer now owns 64,215 shares of the company’s stock, valued at approximately $3,403,395. The disclosure for this sale can be found here. Insiders sold 39,429 shares of company stock valued at $1,952,525 over the last three months. Insiders own 4.52% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SMAR. International Assets Investment Management LLC bought a new position in Smartsheet during the second quarter valued at $25,000. Banque Cantonale Vaudoise bought a new position in shares of Smartsheet in the 1st quarter valued at about $29,000. Versant Capital Management Inc bought a new position in shares of Smartsheet in the 2nd quarter valued at about $31,000. Plato Investment Management Ltd purchased a new position in Smartsheet in the first quarter worth about $35,000. Finally, First Horizon Advisors Inc. increased its stake in Smartsheet by 37.5% during the second quarter. First Horizon Advisors Inc. now owns 894 shares of the company’s stock worth $39,000 after acquiring an additional 244 shares during the last quarter. 90.01% of the stock is currently owned by institutional investors.

Smartsheet Company Profile

Smartsheet, Inc engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D.