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Abdel Raouf, Executive Vice President of Global Operations at Equinix Inc. (NASDAQ:EQIX), an $81.5 billion market cap data center giant with a "GOOD" Financial Health score according to InvestingPro, recently executed a series of stock transactions, according to a recent SEC filing. On March 12, Raouf acquired 502 shares of common stock through the exercise of restricted stock units, with no cash outlay required.
The following day, March 13, Raouf sold a total of 324 shares of Equinix common stock. The shares were sold in multiple transactions at prices ranging from approximately $830.63 to $848.97 per share, generating a total of $408,475. An additional 17 shares were sold at a price of $850.12 per share, resulting in proceeds of $14,451. The stock, which has declined 11% year-to-date, currently trades near $838, with analysts maintaining a bullish consensus and a high target of $1,200.
Post-transaction, Raouf holds 7,890 shares of Equinix common stock. The sales were conducted under a 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell company stock, helping to avoid concerns of insider trading. According to InvestingPro’s analysis, Equinix appears to be overvalued at current levels, with additional insights available in the comprehensive Pro Research Report.
In other recent news, Equinix reported its financial results for the fourth quarter of 2024, revealing a 7% year-over-year increase in global revenues, reaching $2.261 billion. The company also posted an adjusted EBITDA of $1.021 billion, representing 45% of revenues, and full-year 2024 revenues of $8.7 billion, up 8% from the previous year. Despite missing some market expectations, Equinix achieved record gross bookings and a backlog at a multi-year high. The company anticipates a 9-12% growth in Adjusted Funds From Operations (AFFO) for 2025 and expects revenue growth of 7-8% on a normalized and constant currency basis.
TD Cowen, BMO Capital Markets, and Jefferies have all adjusted their price targets for Equinix, with TD Cowen reducing it to $978, BMO to $1,065, and Jefferies to $1,140, while maintaining positive ratings. Analysts cited factors such as foreign exchange fluctuations and capacity constraints as reasons for the earnings miss. However, they noted strong demand for artificial intelligence (AI) capabilities, with Equinix seeing significant interest in AI workloads, which could drive future growth.
Equinix’s strategic focus on AI and high-performance computing capabilities is evident, with the company highlighting that half of its top 25 new leases are for AI workloads. The company plans to increase its cash dividend by 10% and projects capital expenditures between $3.2 and $3.5 billion for 2025. Despite short-term challenges, the analysts believe Equinix’s long-term outlook remains promising, driven by strong bookings and expected improvements in financial metrics.
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