Home Stocks Insight Enterprises, Inc. Soars on Analyst Upgrade

Insight Enterprises, Inc. Soars on Analyst Upgrade

Insight Enterprises, Inc. (NASDAQ:NSIT) soared after Raymond James upgraded its rating for the stock to Market Perform from Underperform.

The shares of Insight Enterprises, Inc. (NASDAQ:NSIT) were trading at $24.30 per share, up by more than 5% at the time of this writing around 2:32 in the afternoon in New York.

Insight Enterprises, Inc. (NASDAQ:NSIT) is a provider of information technology (IT) solutions to businesses and public sector institutions around the world. In a note to investors, analysts at Raymond James noted a healthy domestic IT spending environment based on third quarter checks.

Insight Enterprises’ strengths

On the other hand, TheStreet Ratings team has a Buy and score B+ recommendation for the shares of Insight Enterprises, Inc. (NASDAQ:NSIT) based on some positive factors, which is greater than the impact of any weakness.

According to the ratings team, IT solutions provider has strength in different areas including its net income and revenue growth solid financial position with reasonable debt levels, attractive valuation levels and solid stock price performance.

“We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity,” according to TheStreet Ratings team.

Microsoft 2014 Federal Partner of the Year

Last August, Insight Public Sector, a unit of Insight Enterprises, Inc. (NASDAQ:NSIT) had been chosen as Microsoft 2014 Federal Partner of the Year.

The recognition highlights the achievement and excellence of Insight Enterprises, Inc. (NASDAQ:NSIT) as a partner of Microsoft Corporation (NASDAQ:MSFT) in leading the “cloud-first, mobile-first” world, and in delivering exceptional results for its clients in the United States.

“Microsoft has recognized Insight’s position as a proven and trusted technology advisor to the U.S. Federal Government, and we are honored to be recognized for our track record of leveraging the best technologies to fit agencies’ evolving IT needs,” said Ken Lamneck, president and CEO of Insight Enterprises, Inc. (NASDAQ:NSIT) in a previous statement.

Second-quarter financial results

Insight Enterprises, Inc. (NASDAQ:NSIT) reported that its net sales were flat at $1.4 billion for the second-quarter that ended June 30. Its gross profit rose 2% to $194.5 million, and gross margin increased 20 basis points to 13.7% during the quarter. The company posted a 3% increase in net earnings to $27.2 million or $0.66 per share.

“In the second quarter, our businesses delivered another quarter of solid earnings growth year over year. As we move into the back half of 2014, we will continue to focus on driving profitable top-line growth in strategic product categories while continuing to selectively invest in sales and solutions capabilities in our core markets,” said Lamneck.