Weekly Investment Analysts’ Ratings Changes for Stamps.com (STMP)

Stamps.com (NASDAQ: STMP) recently received a number of ratings updates from brokerages and research firms:

  • 5/15/2019 – Stamps.com was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “strong sell” rating. According to Zacks, “Stamps.com is a leading provider of Internet-based postage services. Stamps.com’s service for postage online enables small businesses, enterprises, and consumers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection, right from their home or office. The Company targets its services to small businesses and home offices, and currently has PC Postage partnerships with Microsoft, EarthLink, HP, NCR, Office Depot, the U.S. Postal Service and others. Stamps.com provides easy, convenient and cost-effective Internet-based services for mailing or shipping letters, packages or parcels. Their PC Postage service is designed to allow individuals, home offices, small businesses or corporations to print US postage using any PC, any ordinary inkjet or laser printer, and an Internet connection. Its PhotoStamps product allows consumers and businesses to turn digital photos, designs or corporate logos into valid US postage. “
  • 5/9/2019 – Stamps.com had its “sell” rating reaffirmed by analysts at Roth Capital. They now have a $35.00 price target on the stock, down previously from $78.00.
  • 5/9/2019 – Stamps.com was downgraded by analysts at B. Riley from a “buy” rating to a “neutral” rating. They now have a $45.00 price target on the stock, down previously from $130.00.
  • 5/9/2019 – Stamps.com was downgraded by analysts at Northland Securities from an “outperform” rating to a “market perform” rating. They now have a $80.00 price target on the stock, down previously from $145.00. They wrote, “We also note the higher tax rate of 40%, up from the prior 30%, as portions of executive compensation are no longer deductible, which with a lower income level, pushes the tax rate to the highest on our list. Reseller Arrangements: Stamps derived a substantial portion of its services revenues from rev shares with the resellers (we estimate $66mn, or 50% in Q1), going to 45% on our new model for Q3 in a very rough cut. The challenge in estimating the impact from new arrangement is: 1) the USPS has just started the process and visibility into the magnitude is very limited; 2) resellers (and ecommerce shippers) will probably switch some unknown volume to other carriers as the pricing differentials shift; and 3) the timing is very much up in the air.””
  • 5/9/2019 – Stamps.com was downgraded by analysts at Craig Hallum from a “buy” rating to a “hold” rating. They now have a $48.00 price target on the stock, down previously from $125.00.
  • 5/9/2019 – Stamps.com had its price target lowered by analysts at Maxim Group to $59.00. They now have a “buy” rating on the stock.
  • 5/1/2019 – Stamps.com was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.
  • 4/25/2019 – Stamps.com was upgraded by analysts at BidaskClub from a “strong sell” rating to a “sell” rating.
  • 4/25/2019 – Stamps.com was upgraded by analysts at Zacks Investment Research from a “strong sell” rating to a “hold” rating. According to Zacks, “Stamps.com is a leading provider of Internet-based postage services. Stamps.com’s service for postage online enables small businesses, enterprises, and consumers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection, right from their home or office. The Company targets its services to small businesses and home offices, and currently has PC Postage partnerships with Microsoft, EarthLink, HP, NCR, Office Depot, the U.S. Postal Service and others. Stamps.com provides easy, convenient and cost-effective Internet-based services for mailing or shipping letters, packages or parcels. Their PC Postage service is designed to allow individuals, home offices, small businesses or corporations to print US postage using any PC, any ordinary inkjet or laser printer, and an Internet connection. Its PhotoStamps product allows consumers and businesses to turn digital photos, designs or corporate logos into valid US postage. “
  • 4/16/2019 – Stamps.com was downgraded by analysts at BidaskClub from a “sell” rating to a “strong sell” rating.
  • 4/10/2019 – Stamps.com was upgraded by analysts at Maxim Group from a “hold” rating to a “buy” rating. They now have a $98.00 price target on the stock.

Shares of NASDAQ STMP traded up $0.96 during midday trading on Wednesday, reaching $43.49. 1,206,646 shares of the stock traded hands, compared to its average volume of 1,185,050. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.52 and a current ratio of 1.54. The company has a market capitalization of $727.30 million, a P/E ratio of 4.42, a P/E/G ratio of 1.20 and a beta of 0.38. Stamps.com Inc. has a one year low of $35.25 and a one year high of $285.74.

Stamps.com (NASDAQ:STMP) last posted its earnings results on Wednesday, May 8th. The software maker reported $0.84 EPS for the quarter, beating analysts’ consensus estimates of $0.70 by $0.14. The firm had revenue of $136.00 million during the quarter, compared to the consensus estimate of $126.06 million. Stamps.com had a return on equity of 26.02% and a net margin of 23.31%. The company’s quarterly revenue was up 1.8% compared to the same quarter last year. During the same period in the prior year, the company earned $2.54 EPS. As a group, equities analysts predict that Stamps.com Inc. will post 2.34 EPS for the current fiscal year.

In other news, Director Mohan P. Ananda sold 1,000 shares of the firm’s stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $93.32, for a total transaction of $93,320.00. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Amine Khechfe sold 11,200 shares of the firm’s stock in a transaction on Friday, February 15th. The shares were sold at an average price of $200.00, for a total value of $2,240,000.00. Following the transaction, the insider now owns 11,591 shares in the company, valued at approximately $2,318,200. The disclosure for this sale can be found here. 6.17% of the stock is currently owned by company insiders.

Institutional investors have recently made changes to their positions in the company. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in Stamps.com by 5.6% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,892 shares of the software maker’s stock worth $294,000 after acquiring an additional 100 shares in the last quarter. Piedmont Investment Advisors Inc. boosted its holdings in Stamps.com by 3.0% in the fourth quarter. Piedmont Investment Advisors Inc. now owns 4,065 shares of the software maker’s stock worth $633,000 after acquiring an additional 120 shares in the last quarter. Stephens Inc. AR boosted its holdings in Stamps.com by 155.8% in the fourth quarter. Stephens Inc. AR now owns 220 shares of the software maker’s stock worth $34,000 after acquiring an additional 134 shares in the last quarter. Bank of Montreal Can boosted its holdings in Stamps.com by 10.9% in the fourth quarter. Bank of Montreal Can now owns 1,388 shares of the software maker’s stock worth $217,000 after acquiring an additional 136 shares in the last quarter. Finally, Pearl River Capital LLC acquired a new stake in Stamps.com in the fourth quarter worth about $27,000. Hedge funds and other institutional investors own 97.53% of the company’s stock.

Stamps.com Inc provides Internet-based mailing and shipping solutions in the United States and Europe. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others.

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