Mitel Acquires ShoreTel, Strengthens Foothold in UCaaS Market

Gwen Vasquez
July 29, 2017

Mitel Networks Corporation (NASDAQ:MITL) (TSE:MNW) insider Richard D. Mcbee sold 80,000 shares of the stock in a transaction that occurred on Monday, July 24th. Finally, Zacks Investment Research downgraded Mitel Networks Corporation from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 19th.

Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks.

In a research update to clients today, Tse upgraded Mitel from "Sector Perform" to "Outperform" and raised his one-year price target on the stock from (U.S.) $7.50 to $10.00, implying a return of 29 per cent at the time of publication. The combined company will generate $1.3-billion in annual revenue and yield $60-million in cost synergies within two years, although Mitel chief financial officer Steve Spooner said the savings might eventually be higher. The firm has a 50-day moving average of $7.29 and a 200-day moving average of $7.01. Mitel Networks Corporation (MITL) has made its way to a 12-month gain of 8.17%.

11/05/2015 - Mitel Networks Corporation had its "buy" rating reiterated by analysts at Canaccord Genuity.

During last 5 trades the stock sticks nearly 11.05%. Insiders have sold a total of 1,114,356 shares of company stock valued at $7,902,912 in the last quarter. For the current year the company's revenue estimates are $955.2 Million compared to low analyst estimates of $946.8 Million and high estimates of $969 Million according to 5 number of analysts.

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More news for Mitel Networks Corp (NASDAQ:MITL) were recently published by: Benzinga.com, which released: "Wall Street's M&A Chatter From July 27: Nordstrom, Mitel-ShoreTel, ICON-Mapi ..." on July 28, 2017. Mitel Networks Corporation had a positive return on equity of 8.69% and a negative net margin of 20.19%. Below is a list of Mitel Networks Corp (NASDAQ:MITL) latest ratings and price target changes. If you are accessing this article on another publication, it was illegally copied and reposted in violation of United States & worldwide copyright & trademark laws. The firm has "Sell" rating by Zacks given on Tuesday, August 25.

Previously Mitel Networks Corp (NASDAQ:MITL) reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.01. They now have a Dollars 12.5 price target on the stock. Hedge funds and other institutional investors own 75.11% of the company's stock. In October 2014, ShoreTel turned down Mitel's offer to acquire the company at $8.10 a-share. Point72 Asset Management L.P. acquired a new position in shares of Mitel Networks Corporation during the first quarter valued at approximately $5,741,000.

ShoreTel, however, did a good job at selling its cloud services to organizations using the company's on-premises gear, Abbott said.

Mitel claims that the addition of ShoreTel will put the comms vendor as the second largest unified communications as-a-service vendor in the market, doubling its revenues to $263m, based on sales between March 2016 and March 2017.

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