Ingram Micro Slips as Stock Carries D Grade

• Our read: EasyAlpha grades Ingram Micro Holding Corporation D, down from B among the top 1,000 U.S. companies, as attractive valuation is offset by weak profitability.
• The day: Shares fell -1.8% to close at $28.17 on Monday, with our sources showing no reported driver during regular trading hours.
• Watching: Whether profit margins of 0.8% can support the stock as it trades 17.7% below the $33.17 analyst consensus.

Ingram Micro Holding Corporation shares fell -1.8% on Monday, August 31, closing at $28.17. Trading volume reached 3.2x average levels. Our sources show no reported catalyst for the move during regular market hours. Following the close of the trading session, Wall Street analysts initiated coverage with a Hold rating and a $30 price target.

The modest decline leaves the stock up +32.0% so far this year. The company's strongest scored dimension is valuation, highlighted by an inexpensive forward price-to-earnings ratio of 8.6. In addition, latest quarterly revenue increased +13.6% year over year. However, profitability represents a key vulnerability. Profit margin sits at just 0.8%, leaving the business with little room for error if technology distribution demand slows.

Ingram Micro Holding Corporation carried a quality grade of D into the session, down from B among the top 1,000 U.S. companies. Every day EasyAlpha grades companies against their industry peers. Companies graded A or B have stronger fundamentals, and historically they have carried a lower risk of large drawdowns than companies graded D or E. A D grade indicates below-average quality relative to peers in the Technology sector. Meanwhile, 50.0% of analyst ratings are buys, and the average price target of $33.17 sits 17.7% above Monday's closing price.