Zacks Investment Research Lowers Envestnet (NYSE:ENV) to Sell

Share on StockTwits

Envestnet (NYSE:ENV) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Envestnet, Inc. is an independent provider of technology-enabled, Web-based investment solutions and services to financial advisors. The Company’s technology platform allows financial advisors to provide their clients with a wide range of investment solutions and services. It offers risk assessment and selection of investment strategies, asset allocation models, research and due diligence, portfolio construction, proposal generation and paperwork preparation, model management and account rebalancing, account monitoring, customized fee billing, overlay services covering asset allocation, tax management and socially responsible investing, aggregated multi-custodian performance reporting and communication tools, as well as access to a range of third-party asset custodians. Envestnet focuses its technology development efforts and its sales and marketing approach on addressing financial advisors’ front, middle and back office needs. Envestnet, Inc. is headquartered in Chicago, Illinois. “

A number of other equities research analysts have also recently weighed in on ENV. ValuEngine cut Envestnet from a “buy” rating to a “hold” rating in a report on Thursday, August 8th. Buckingham Research cut Envestnet from a “buy” rating to a “neutral” rating and set a $73.00 price target for the company. in a report on Thursday, May 9th. SunTrust Banks initiated coverage on Envestnet in a report on Thursday, April 18th. They set a “buy” rating and a $80.00 price target for the company. TheStreet cut Envestnet from a “b” rating to a “c+” rating in a report on Thursday, May 9th. Finally, Raymond James raised their price target on Envestnet from $82.00 to $83.00 and gave the company a “strong-buy” rating in a report on Thursday, July 11th. One analyst has rated the stock with a sell rating, five have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. Envestnet has a consensus rating of “Buy” and an average target price of $73.30.

ENV stock traded up $0.08 during midday trading on Tuesday, reaching $57.83. 322,900 shares of the company’s stock traded hands, compared to its average volume of 294,321. The business has a 50-day moving average of $68.88. Envestnet has a 1-year low of $46.57 and a 1-year high of $73.94. The stock has a market cap of $2.85 billion, a P/E ratio of 46.26, a price-to-earnings-growth ratio of 2.58 and a beta of 1.67. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.60.

Envestnet (NYSE:ENV) last released its quarterly earnings results on Wednesday, August 7th. The business services provider reported $0.24 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.26 by ($0.02). Envestnet had a negative net margin of 1.72% and a positive return on equity of 10.18%. The business had revenue of $227.90 million for the quarter, compared to analyst estimates of $225.34 million. During the same period in the prior year, the business earned $0.41 earnings per share. The company’s revenue for the quarter was up 13.3% on a year-over-year basis. On average, sell-side analysts anticipate that Envestnet will post 1.4 earnings per share for the current fiscal year.

In other news, COO Joshua Mayer sold 500 shares of Envestnet stock in a transaction on Friday, August 2nd. The stock was sold at an average price of $69.82, for a total value of $34,910.00. Following the completion of the sale, the chief operating officer now directly owns 28,102 shares of the company’s stock, valued at approximately $1,962,081.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Anil Arora sold 2,261 shares of Envestnet stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $66.79, for a total value of $151,012.19. Following the completion of the sale, the director now directly owns 40,706 shares of the company’s stock, valued at $2,718,753.74. The disclosure for this sale can be found here. Insiders sold a total of 116,064 shares of company stock valued at $8,123,684 over the last three months. Insiders own 4.97% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. TRUE Private Wealth Advisors acquired a new stake in shares of Envestnet during the second quarter worth $27,000. DekaBank Deutsche Girozentrale acquired a new stake in shares of Envestnet during the second quarter worth $34,000. Hudock Capital Group LLC acquired a new stake in shares of Envestnet during the second quarter worth $46,000. Marshall Wace LLP acquired a new stake in shares of Envestnet during the first quarter worth $50,000. Finally, SRS Capital Advisors Inc. acquired a new stake in shares of Envestnet during the second quarter worth $83,000. 95.27% of the stock is owned by institutional investors.

About Envestnet

Envestnet, Inc, together with its subsidiaries, provides intelligent systems for wealth management and financial wellness in the United States and internationally. It operates through Envestnet and Envestnet | Yodlee segments. The company's product and services suites include Envestnet | Enterprise, which provides an end-to-end open architecture wealth management platform, as well as sells data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Tamarac that provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; Envestnet | Retirement Solutions, which offer a suite of services for advisor-sold retirement plans; and Envestnet | Portfolio Management Consultants that provide research, due diligence, and consulting services to assist advisors in creating investment solutions for their clients, and patented portfolio overlay and tax optimization services.

Featured Article: How a Put Option Works

Get a free copy of the Zacks research report on Envestnet (ENV)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Envestnet (NYSE:ENV)

Receive News & Ratings for Envestnet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Envestnet and related companies with MarketBeat.com's FREE daily email newsletter.