Is Aerohive Networks Inc (HIVE) A Good Stock To Buy?

Stock’s Performance and Results

Aerohive is a $330 million developer of a cloud-managed mobile platform. The company has recently sealed a deal with Dell Inc. and Apple Inc. (NASDAQ:AAPL) for the resell of its Cloud-Managed Wi-Fi and Mobility Solutions. The growing demand for technologically advanced platforms for enterprises and educational institutions are seen as openings that Aerohive is keen on exploring to expand its market share, sales, and profitability. Winning partnerships with such multinational companies is a step towards the right direction and good news for investors.

Aerohive Networks Inc (NYSE:HIVE) last issued its financial results on May 6. The stock posted a loss of $0.26 per share for the first quarter, in line with the estimates. This was on revenue of $25.80 million, coming slightly below analysts’ expectations of $26.80 million. The earnings represent notable year over year improvement, considering that the company posted a loss of $0.96 a year earlier. On a year-over-year basis, the company’s revenue declined by 8.5%.

Analysts’ Ratings

Analysts that have recently weighed in on Aerohive have confidence in the stock. Up to six analysts that have recently covered the stock have given it a “buy” recommendation, while the average target price amounts to $10.60 per share.

Analysts expect Aerohive Networks Inc (NYSE:HIVE) to post a loss of $0.68 per share for the current fiscal year, while for the current profit, the estimate stands at a loss of $0.21.

Conclusion

Considering the company’s products, there is no doubt that it has great prospects. The kind of enthusiasm displayed by Aerohive Networks Inc (NYSE:HIVE);s management to improve its products and strike deals with global entities is no doubt a sign of better things ahead.

Internet access is penetrating initially unreachable global locations, resulting in wider markets that these multinationals can explore to expand their market share while at the same time unlocking new markets for Aerohive.

If the management team continues with their relentless efforts and the shareholders continue to excite the stock, there is no doubt that Aerohive Networks Inc (NYSE:HIVE) remains a “buy” and would hit the “strong buy” territory.

 Disclosure: none