Ellie Mae (ELLI) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research cut shares of Ellie Mae (NYSE:ELLI) from a strong-buy rating to a hold rating in a research note published on Wednesday.

According to Zacks, “Ellie Mae’s consistent top-line growth has been benefiting from robust adoption of the Encompass NG Lending Platform. The company is working in accordance with lender feedback to enhance the platform. The aggressive acquisition strategy is also proving to be worthy. Additionally, a strong client base including TD Bank, one of the top 10 national banks of America, is also a major positive for the company. Notably, the company has a strong balance sheet with no long-term debt.  However, the company's serviceable industry just being concentrated to the financial mortgage industry is a major headwind for the company, especially, when the mortgage origination environment is likely to face hurdles going ahead. A negative free cash flow also does not bode well for investors. The stock has underperformed the industry on a year-to-date basis.”

Several other brokerages also recently weighed in on ELLI. JPMorgan Chase & Co. downgraded Ellie Mae from an overweight rating to a neutral rating and boosted their price objective for the company from $112.00 to $118.00 in a research report on Thursday, June 21st. They noted that the move was a valuation call. Royal Bank of Canada boosted their price objective on Ellie Mae to $125.00 and gave the company an outperform rating in a research report on Monday, June 18th. KeyCorp reiterated a buy rating and issued a $120.00 price objective on shares of Ellie Mae in a research report on Tuesday, April 24th. Bank of America downgraded Ellie Mae from a buy rating to a neutral rating and set a $110.00 price objective for the company. in a research report on Monday, April 16th. Finally, Zelman & Associates upgraded Ellie Mae from a sell rating to a hold rating in a research report on Friday, April 20th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and six have given a buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $103.33.

Shares of NYSE ELLI opened at $103.47 on Wednesday. The company has a market capitalization of $3.70 billion, a P/E ratio of 100.46, a price-to-earnings-growth ratio of 6.97 and a beta of 0.58. Ellie Mae has a 1 year low of $79.71 and a 1 year high of $116.90.

Ellie Mae (NYSE:ELLI) last issued its earnings results on Thursday, April 26th. The software maker reported $0.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.09 by $0.25. The business had revenue of $117.91 million during the quarter, compared to analyst estimates of $108.80 million. Ellie Mae had a return on equity of 5.73% and a net margin of 10.28%. Ellie Mae’s revenue for the quarter was up 26.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.25 earnings per share. equities analysts expect that Ellie Mae will post 0.86 earnings per share for the current year.

In related news, Director Karen Blasing sold 579 shares of the company’s stock in a transaction that occurred on Thursday, June 21st. The stock was sold at an average price of $110.50, for a total transaction of $63,979.50. Following the completion of the transaction, the director now owns 5,748 shares in the company, valued at $635,154. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Jonathan Corr sold 2,306 shares of the company’s stock in a transaction that occurred on Tuesday, April 3rd. The shares were sold at an average price of $91.56, for a total value of $211,137.36. Following the transaction, the chief executive officer now owns 111,289 shares of the company’s stock, valued at approximately $10,189,620.84. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 37,984 shares of company stock valued at $3,965,958. 3.14% of the stock is owned by corporate insiders.

Several institutional investors have recently made changes to their positions in ELLI. Teacher Retirement System of Texas raised its holdings in shares of Ellie Mae by 317.1% during the fourth quarter. Teacher Retirement System of Texas now owns 11,676 shares of the software maker’s stock valued at $1,044,000 after acquiring an additional 8,877 shares in the last quarter. Swiss National Bank raised its holdings in shares of Ellie Mae by 4.1% during the fourth quarter. Swiss National Bank now owns 58,600 shares of the software maker’s stock valued at $5,239,000 after acquiring an additional 2,300 shares in the last quarter. Calamos Advisors LLC bought a new position in shares of Ellie Mae during the fourth quarter valued at approximately $17,989,000. Geode Capital Management LLC raised its holdings in shares of Ellie Mae by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 280,755 shares of the software maker’s stock valued at $25,099,000 after acquiring an additional 1,289 shares in the last quarter. Finally, Amundi Pioneer Asset Management Inc. bought a new position in shares of Ellie Mae during the fourth quarter valued at approximately $13,287,000.

About Ellie Mae

Ellie Mae, Inc provides cloud-based platform for the mortgage finance industry in the United States. The company provides Encompass, a proprietary software solution that combines lead management; loan origination and processing; underwriting; preparation of mortgage applications, disclosure agreements, and closing documents; loan funding and closing; compliance with regulatory and investor requirements; and enterprise management.

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