Shares of N-able, Inc. (NYSE:NABL) experienced a notable increase before the market opened on Thursday, following a strong earnings announcement that surpassed analysts’ expectations. The stock, which closed at $7.78 on the previous day, opened at $8.55 and last traded at $8.3350, with a trading volume of 210,603 shares.
The company reported earnings of $0.13 per share for the quarter, exceeding the consensus estimate of $0.09 by $0.04. Additionally, N-able generated revenue of $131.71 million, which also surpassed expectations of $127.48 million. This performance marked a 13.1% increase in revenue compared to the same quarter last year. Despite these positive results, N-able faced a negative net margin of 1.31% but managed to achieve a return on equity of 4.17%.
N-able has provided guidance for the fiscal year 2025, though specific earnings per share details remain to be fully disclosed.
Analyst Ratings and Market Response
The recent earnings report has drawn attention from various analysts. On October 8, 2023, Weiss Ratings reaffirmed a “sell (d)” rating for N-able’s shares. Meanwhile, Wall Street Zen upgraded the stock from a “hold” rating to a “buy” on September 5, 2023. Scotiabank also adjusted its rating, maintaining a “sector perform” designation and raising its target price from $8.30 to $8.75. Royal Bank of Canada further increased its price target from $9.00 to $10.00, assigning an “outperform” rating to the stock.
Currently, three analysts have rated N-able as a buy, while two have assigned a hold rating, and one has given it a sell rating. According to MarketBeat.com, the consensus rating for the company is “hold” with an average price target of $9.31.
Insider Transactions and Institutional Holdings
In related news, significant insider trading has been reported. Executive Vice President Michael I. Adler sold 31,728 shares on August 19, 2023, at an average price of $7.72, totaling approximately $244,940.16. Following this sale, Adler holds 468,555 shares valued at around $3,617,244.60, representing a 6.34% decrease in his ownership.
Additionally, Director Ann Johnson sold 34,568 shares on August 18, 2023, at an average price of $7.70, valued at approximately $266,173.60. After this transaction, she owns 37,424 shares, valued at $288,164.80, reflecting a 48.02% reduction in her holdings. Insiders currently own 1.50% of N-able’s stock.
Institutional investors have also been active in modifying their stakes. Charles Schwab Investment Management Inc. increased its holdings by 5.2% in the first quarter, acquiring an additional 31,311 shares, bringing its total to 635,171 shares valued at $4,503,000. The Public Sector Pension Investment Board raised its stake by 27.0%, while Cove Street Capital LLC entered a new position valued at $462,000.
Overall, institutional investors and hedge funds hold a significant 96.35% of N-able’s stock.
The company has a market capitalization of approximately $1.55 billion, a price-to-earnings ratio of -275.83, and a beta of 0.61. Its 50-day simple moving average stands at $7.99, while the 200-day average is $7.88. Financial ratios indicate a quick ratio of 1.24 and a debt-to-equity ratio of 0.40.
Company Overview
N-able, Inc. specializes in providing cloud-based software solutions for managed service providers (MSPs) across the globe, including in the United States and the United Kingdom. The company’s offerings support digital transformation and enable growth for small and medium-sized enterprises. Its software platform is designed as an integrated, enterprise-grade solution, functioning as an operating system for MSP partners and adapting to their evolving business needs.
As investors and analysts continue to monitor N-able’s performance, the company’s recent earnings report has positioned it favorably in the market, reflecting its potential for growth and continued interest from institutional stakeholders.
