Mimecast (NASDAQ:MIME) Trading 11.4% Higher on Strong Earnings

Shares of Mimecast Ltd (NASDAQ:MIME) traded up 11.4% on Friday after the company announced better than expected quarterly earnings. The company traded as high as $43.46 and last traded at $43.20, 1,662,216 shares were traded during mid-day trading. An increase of 197% from the average session volume of 560,603 shares. The stock had previously closed at $38.79.

The technology company reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.11. Mimecast had a negative return on equity of 2.63% and a negative net margin of 2.09%. The business had revenue of $103.36 million during the quarter, compared to analysts’ expectations of $101.63 million. During the same period in the prior year, the business posted $0.06 EPS. The company’s revenue was up 25.8% compared to the same quarter last year.

Several equities analysts recently issued reports on MIME shares. Needham & Company LLC reissued a “buy” rating and set a $65.00 target price on shares of Mimecast in a research note on Friday. ValuEngine raised Mimecast from a “sell” rating to a “hold” rating in a research note on Saturday, October 19th. Dougherty & Co lowered Mimecast from a “buy” rating to a “neutral” rating in a research note on Friday. BidaskClub raised Mimecast from a “sell” rating to a “hold” rating in a research note on Thursday, October 3rd. Finally, Rosenblatt Securities started coverage on Mimecast in a research note on Wednesday, August 21st. They set a “buy” rating and a $57.00 target price on the stock. Five equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $55.53.

In other Mimecast news, Director Neil Murray sold 35,000 shares of the stock in a transaction dated Monday, October 21st. The stock was sold at an average price of $38.78, for a total value of $1,357,300.00. Following the sale, the director now owns 1,737,245 shares of the company’s stock, valued at approximately $67,370,361.10. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Peter Bauer sold 27,500 shares of the stock in a transaction dated Thursday, August 22nd. The shares were sold at an average price of $43.30, for a total value of $1,190,750.00. Following the completion of the sale, the chief executive officer now directly owns 225,000 shares in the company, valued at approximately $9,742,500. The disclosure for this sale can be found here. Insiders sold a total of 344,572 shares of company stock worth $14,335,574 in the last ninety days. 11.60% of the stock is owned by corporate insiders.

Hedge funds have recently bought and sold shares of the business. Steward Partners Investment Advisory LLC acquired a new stake in Mimecast in the 2nd quarter valued at about $32,000. Marshall Wace LLP acquired a new stake in shares of Mimecast during the 1st quarter worth about $49,000. Advisor Group Inc. raised its position in shares of Mimecast by 39.1% during the 2nd quarter. Advisor Group Inc. now owns 1,349 shares of the technology company’s stock worth $64,000 after acquiring an additional 379 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. acquired a new stake in shares of Mimecast during the 2nd quarter worth about $79,000. Finally, SG Americas Securities LLC acquired a new stake in shares of Mimecast during the 2nd quarter worth about $102,000. 72.02% of the stock is currently owned by institutional investors.

The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.20 and a current ratio of 1.20. The firm has a market cap of $2.48 billion, a price-to-earnings ratio of -617.14, a price-to-earnings-growth ratio of 63.81 and a beta of 1.18. The firm has a 50-day moving average price of $38.54 and a two-hundred day moving average price of $44.04.

About Mimecast (NASDAQ:MIME)

Mimecast Limited, a email and data security company, provides cloud security and risk management services for corporate information and email. The company offers Mimecast Email Security services, including targeted threat protection services, such as URL Protect that addresses the threat from emails containing malicious links; Attachment Protect that reduces threat from weaponized or malware-laden attachments used in spear-phishing and other attacks; Impersonation Protect that gives protection from malware-less social engineering attacks; and Internal Email Protect, which allows customers to monitor, detect, and remediate security threats that originate from within their internal email systems.

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