Bullish indicating open at $55-$60, IPO prices at $37
Charles J. Meyers, Executive Chairman of Equinix Inc. (NASDAQ:EQIX), has sold a significant portion of his holdings in the data center company. According to a recent SEC filing, Meyers offloaded shares worth approximately $3.3 million on February 19. The shares were sold at prices ranging from $925.31 to $936.05 per share. The stock currently trades near $940, approaching its 52-week high of $994, with InvestingPro analysis indicating the stock is currently overvalued.
This transaction follows a series of acquisitions by Meyers on February 18, where he acquired a total of 8,053 shares through the exercise of restricted stock units. These shares were acquired at no cost, as part of his compensation package.
The sales were made under a 10b5-1 trading plan, a pre-arranged plan that allows insiders to sell shares at predetermined times, often used to avoid accusations of insider trading. The proceeds from these sales are intended to cover the required withholding tax due to the vesting of restricted stock units.
Following these transactions, Meyers retains direct ownership of 15,513 shares in Equinix. The company, based in Redwood (NYSE:RWT) City, California, operates as a real estate investment trust and is a leader in data center and colocation services. With a market capitalization of $91.4 billion, Equinix boasts a "GOOD" financial health score according to InvestingPro, which offers comprehensive analysis and over 30 additional key metrics in its Pro Research Report.
In other recent news, Equinix reported its fourth-quarter 2024 earnings with global revenues reaching $2.261 billion, marking a 7% increase year-over-year. The company also posted an adjusted EBITDA of $1.021 billion, representing 45% of revenues. Equinix’s full-year revenue for 2024 totaled $8.7 billion, reflecting an 8% increase from the previous year. Despite these positive results, Equinix’s earnings fell short of some market expectations, prompting Jefferies to lower its price target on the company from $1,200 to $1,140 while maintaining a Buy rating. Similarly, BMO Capital Markets adjusted its price target to $1,065 from $1,085, but also maintained an Outperform rating. TD Cowen slightly reduced its price target from $984 to $978, citing lower-than-expected organic revenue growth forecasts for 2025. Despite these adjustments, analysts highlighted Equinix’s record gross bookings and strong demand for AI capabilities as positive indicators for future growth. The company anticipates a 9-12% growth in Adjusted Funds From Operations (AFFO) for 2025, with adjusted EBITDA margins expected to reach approximately 49%.
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