Zebra Technologies (NASDAQ: ZBRA) received a significant upgrade from Zacks Research, moving from a “strong sell” rating to a “hold” rating. This change was communicated in a research note to investors on Monday, October 30, 2023, according to MarketBeat Ratings. The upgrade reflects a shift in sentiment towards the company, which specializes in advanced tracking and printing solutions.
Several other analysts have recently shared their perspectives on Zebra Technologies. KeyCorp reaffirmed a “sector weight” rating on the company’s shares. On the same day, Barclays adjusted its price target for Zebra from $375.00 to $360.00 while maintaining an “overweight” rating. Citigroup also revised its forecast, cutting the price target from $346.00 to $311.00 and assigning a “neutral” rating.
Additionally, Truist Financial lowered its price objective from $331.00 to $291.00 and kept a “hold” rating. Weiss Ratings reaffirmed a “hold (c)” rating on October 8, 2023. Currently, one investment analyst has rated the stock as a Strong Buy, five have assigned a Buy rating, and six have given it a Hold rating. The consensus rating among analysts stands at “Moderate Buy” with an average target price of $349.00.
Financial Performance and Future Outlook
Zebra Technologies reported its latest quarterly earnings on October 28, 2023. The company announced earnings per share (EPS) of $3.88, surpassing the consensus estimate of $3.75 by $0.13. With a net margin of 9.74% and a return on equity of 18.08%, Zebra generated $1.32 billion in revenue for the quarter, aligning with analyst expectations. This revenue reflects a 5.2% increase compared to the same quarter last year, during which the company posted an EPS of $3.49.
Looking ahead, Zebra Technologies has set guidance for Q4 2025 at an EPS range of $4.200 to $4.400 and FY 2025 guidance at $15.800 EPS. Analysts anticipate that the company will achieve an average EPS of $13.71 for the current year, indicating positive growth expectations.
Insider Activity and Institutional Investors
In a related development, Director Satish Dhanasekaran acquired 1,000 shares of Zebra Technologies on November 18, 2023. The shares were purchased at an average price of $233.12 each, amounting to a total of $233,120.00. Following this transaction, Dhanasekaran increased his ownership in the company by 42.44%, bringing his total shares to 3,356, valued at approximately $782,350.72. This insider activity was disclosed through a filing with the Securities and Exchange Commission.
A significant portion of Zebra Technologies’ stock is held by institutional investors. In the third quarter, Vanguard Group Inc. increased its stake by 1.3%, now owning 6,513,454 shares valued at approximately $1.94 billion. State Street Corp boosted its holdings by 1.7%, reaching 2,242,126 shares worth about $666.27 million. Other notable investors such as Invesco Ltd. and AllianceBernstein L.P. have also increased their stakes, illustrating strong institutional interest in the company.
Approximately 91.03% of Zebra Technologies’ stock is owned by institutional investors and hedge funds, demonstrating a robust confidence in the company’s market position and future potential.
Zebra Technologies continues to enhance its reputation as a global leader in marking, tracking, and computer printing solutions, offering a diverse array of products designed to provide real-time visibility across various industries. The company’s offerings support operational efficiency in sectors such as retail, healthcare, manufacturing, and logistics. As Zebra Technologies looks to the future, it remains to be seen how these upgrades and financial performances will influence its trajectory in the competitive technology landscape.
