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Sterne Agee assumed coverage on shares of Greenway Medical Technologies (NASDAQ: GWAY) in a research note issued on Tuesday, TheFlyOnTheWall.com reports. The firm set an “underperform” rating on the stock.

The analysts wrote, “While Greenway Medical has achieved admirable success with the 5-10 doctor practices over the past 5+ years, as the average size of physician practices rises, we do not think the company possesses enough scale to convince enterprise-size physician practices to use the company’s technologies/services. We believe consensus revenue and EBITDA estimates are too high and GWAY shares are overvalued. Re-initiate with an Underperform rating and $5 price target.”

Greenway Medical Technologies (NASDAQ: GWAY) traded down 4.17% on Tuesday, hitting $11.72. Greenway Medical Technologies has a 1-year low of $11.41 and a 1-year high of $19.65. The stock’s 50-day moving average is currently $12.68. The company has a market cap of $348.6 million and a price-to-earnings ratio of 643.68.

Greenway Medical Technologies (NASDAQ: GWAY) last released its earnings data on Monday, May 6th. The company reported $0.01 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.03. The company had revenue of $33.80 million for the quarter, compared to the consensus estimate of $38.56 million. During the same quarter last year, the company posted $0.08 earnings per share. Greenway Medical Technologies’s revenue was up 2.7% compared to the same quarter last year. Analysts expect that Greenway Medical Technologies will post $0.02 EPS for the current fiscal year.

A number of other analysts have also recently weighed in on GWAY. Analysts at B. Riley initiated coverage on shares of Greenway Medical Technologies in a research note to investors on Friday, May 31st. They set a “buy” rating on the stock. Separately, analysts at Zacks downgraded shares of Greenway Medical Technologies from a “neutral” rating to an “underperform” rating in a research note to investors on Tuesday, May 7th. They now have a $11.30 price target on the stock. Finally, analysts at TheStreet downgraded shares of Greenway Medical Technologies from a “hold” rating to a “sell” rating in a research note to investors on Monday, May 6th.

Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $16.43.

Greenway Medical Technologies, Inc. (NASDAQ: GWAY) is a provider of integrated information technology solutions and managed business services to ambulatory healthcare providers.

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