Street Calls of the Week
Abdel Raouf, Executive Vice President of Global Operations at Equinix Inc. (NASDAQ:EQIX), recently executed a notable stock transaction. On February 19, Raouf sold 986 shares of Equinix common stock at a price of $931 per share, amounting to a total of $917,966. This sale was part of a pre-arranged 10b5-1 trading plan intended to cover withholding taxes related to the vesting of restricted stock units (RSUs). The transaction occurred near the stock’s 52-week high of $994, with Equinix shares currently trading at $940, reflecting strong momentum in this $91 billion market cap company.
In addition to the sale, Raouf acquired a series of shares through the exercise of stock options and vesting of RSUs on February 18. These acquisitions included 716, 516, and 1,037 shares of common stock, all at no cost, resulting in a post-transaction holding of 7,890 shares. The transactions reflect routine financial planning activities and align with previously established performance targets and vesting schedules. According to InvestingPro, Equinix maintains a "GOOD" overall financial health score, with particularly strong price momentum and cash flow metrics. Discover more insights and detailed analysis in Equinix’s comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Equinix reported its fourth-quarter 2024 financial results, showing a 7% year-over-year increase in revenues, reaching $2.261 billion, with an adjusted EBITDA of $1.021 billion, representing 45% of revenues. The company achieved full-year revenue of $8.7 billion, marking an 8% rise from the previous year, and projects a 7-8% revenue growth for 2025 on a normalized basis. Despite the positive revenue growth, Equinix’s earnings report did not meet some market expectations, leading to a series of analyst adjustments. TD Cowen lowered its price target for Equinix to $978, citing lower-than-expected organic revenue growth but maintained a Buy rating due to strong bookings and anticipated financial improvements in 2026.
Similarly, BMO Capital Markets reduced its price target to $1,065 while keeping an Outperform rating, highlighting foreign exchange impacts and a modest 4% revenue growth projection. Jefferies also cut its price target to $1,140, maintaining a Buy recommendation, and noted the company’s strong demand for AI capabilities, with half of the top 25 new leases focused on AI workloads. Equinix’s strategic focus on AI and high-performance computing is underscored by its anticipation of a 9-12% growth in Adjusted Funds From Operations (AFFO) for 2025. Despite short-term challenges, analysts from these firms express confidence in Equinix’s potential for long-term growth, particularly in the AI and data center sectors.
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