NEW YORK (TheStreet) -- Shares of CyrusOne Inc. (CONE) - Get Report are higher by 1.56% to $30.23 on very heavy volume in mid-afternoon trading on Wednesday, after the company announced that its operating partnership CyrusOne LP and a subsidiary of the operating partnership are planning to offer a $100 million aggregate principal amount of their 6.375% senior notes due in 2022.
So far today, 4.66 million shares of CyrusOne have exchanged hands as compared to its average daily volume of 658,000 shares.
The issuers plan to use the proceeds from the offering of the new notes in order to finance the operating partnership's previously announced acquisition of Cervalis Holdings as well as to pay fees and expenses related to the purchase and other corporate purposes.
On Tuesday, the company, which owns, operates, and develops enterprise class, carrier neural data centers, announced it priced the public offering of 11.3 million shares of its common stock at a price of $30 per share.
Separately, TheStreet Ratings team rates CYRUSONE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CYRUSONE INC (CONE) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CONE's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- This stock has managed to rise its share value by 30.20% over the past twelve months. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- CYRUSONE INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CYRUSONE INC continued to lose money by earning -$0.25 versus -$1.32 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.25).
- The gross profit margin for CYRUSONE INC is currently extremely low, coming in at 5.25%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -5.01% is significantly below that of the industry average.
- Net operating cash flow has decreased to $33.30 million or 12.13% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: CONE Ratings Report