Zacks Investment Research Downgrades Atento (NYSE:ATTO) to Strong Sell

Atento (NYSE:ATTO) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Atento S.A. is a provider of customer relationship management and business process outsourcing (CRM BPO) services in Latin America and Spain. Its CRM BPO services include customer service, sales, credit management, technical support, back office, and service desk, as well as other BPO process services, such as training activities, workstation infrastructure, interactive voice response port implementation, telecommunications infrastructure, application development, and others. The Company’s clients are mostly multinational corporations in sectors such as telecommunications, banking and finance, health, consumption and public administration, among others. Atento S.A. is based in Luxembourg. “

Several other research firms have also recently issued reports on ATTO. Barrington Research reaffirmed a “buy” rating and issued a $8.00 price target on shares of Atento in a report on Thursday, August 1st. ValuEngine cut shares of Atento from a “buy” rating to a “hold” rating in a report on Monday, November 4th. One analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $5.17.

Shares of ATTO stock traded up $0.06 on Tuesday, hitting $3.00. The stock had a trading volume of 148,824 shares, compared to its average volume of 139,815. The firm has a market capitalization of $221.71 million, a price-to-earnings ratio of 3.90, a P/E/G ratio of 1.02 and a beta of 0.80. The stock’s 50 day moving average is $2.85 and its 200-day moving average is $2.70. The company has a debt-to-equity ratio of 2.58, a quick ratio of 1.44 and a current ratio of 1.44. Atento has a 52-week low of $2.10 and a 52-week high of $5.52.

Atento (NYSE:ATTO) last announced its earnings results on Wednesday, November 13th. The business services provider reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.15). The firm had revenue of $412.30 million during the quarter, compared to analysts’ expectations of $423.60 million. Atento had a negative net margin of 2.14% and a positive return on equity of 4.13%. Equities analysts expect that Atento will post 0.28 earnings per share for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of ATTO. California Public Employees Retirement System raised its holdings in shares of Atento by 1,843.5% during the third quarter. California Public Employees Retirement System now owns 287,634 shares of the business services provider’s stock worth $800,000 after purchasing an additional 272,834 shares during the period. Morgan Stanley raised its holdings in shares of Atento by 25.6% during the second quarter. Morgan Stanley now owns 730,141 shares of the business services provider’s stock worth $1,818,000 after purchasing an additional 148,754 shares during the period. Balter Liquid Alternatives LLC raised its holdings in shares of Atento by 32.8% during the second quarter. Balter Liquid Alternatives LLC now owns 361,674 shares of the business services provider’s stock worth $901,000 after purchasing an additional 89,274 shares during the period. LPL Financial LLC acquired a new stake in shares of Atento during the second quarter worth $125,000. Finally, Engine Capital Management LP raised its holdings in shares of Atento by 120.1% during the second quarter. Engine Capital Management LP now owns 55,244 shares of the business services provider’s stock worth $138,000 after purchasing an additional 30,141 shares during the period. 77.41% of the stock is currently owned by hedge funds and other institutional investors.

About Atento

Atento SA, together with its subsidiaries, provides customer relationship management and business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa. It offers a range of front and back-end services, including sales, customer care, collections, back office, applications-processing, credit-management, and technical support services.

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