Jonathan Lin, the Chief Business Officer of Equinix Inc. (NASDAQ:EQIX), a $88.5 billion data center giant trading near $915 per share, recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with analysts maintaining a bullish consensus. On January 16, Lin sold a total of 1,328 shares of Equinix common stock. These sales were conducted at prices ranging from $900.9188 to $905.88 per share, resulting in a total transaction value of approximately $1.2 million. The transaction occurred as the stock trades near its 52-week high of $994.03, having gained about 17.5% over the past year.
The sale of shares was carried out under a 10b5-1 trading plan, which is often used by company insiders to pre-schedule stock sales in compliance with insider trading laws. This plan allows insiders to sell a predetermined number of shares at a predetermined time, providing a measure of protection against accusations of insider trading.
Following these transactions, Lin now holds 8,777 shares of Equinix common stock in direct ownership. The transactions were part of a broader set of activities on January 15 and 16, which also included the acquisition of restricted stock units, though these were not part of the sales that generated the $1.2 million.
In other recent news, Equinix, a global data center company, has had its stock price target updated by several analysts following its strong third quarter of 2024 financial results. RBC (TSX:RY) Capital Markets raised its price target to $1,025 from $936, while Mizuho (NYSE:MFG) Securities updated its price target to $1,094 from $971. CFRA also increased its price target for Equinix to $975, and Truist Securities raised its price target to $1,090 from $935.
Equinix's third-quarter results outperformed consensus estimates with revenues slightly above market predictions. The company reported adjusted EBITDA of $1,048 million, surpassing both RBC's and consensus estimates. Adjusted funds from operations (AFFO) and AFFO per share also significantly outperformed consensus estimates.
Equinix recently issued €1.15 billion in senior notes to finance or refinance green projects and announced a strategic partnership with CPP Investment Board and GIC to invest over $15 billion in xScale facilities. These developments are part of the company's ongoing expansion and commitment to meeting the increasing demand for digital infrastructure and AI workloads.
Analyst firms have adjusted their earnings projections based on these developments. For instance, Truist Securities has set the expected 2024 EBITDA at $4,115 million, a significant increase from the current EBITDA. CFRA also increased its 2025 funds from operations (FFO) estimate to $27.00. These are the latest developments in Equinix's growth trajectory and strategic investments in the data center and interconnection space.
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