athenahealth Lowered to Market Perform at Raymond James (ATHN)
athenahealth (NASDAQ:ATHN) was downgraded by equities research analysts at Raymond James from an “outperform” rating to a “market perform” rating in a research note issued to investors on Tuesday, TheFlyOnTheWall.com reports. They currently have a $120.00 price objective on the stock. Raymond James’ price target points to a potential downside of 14.37% from the stock’s previous close.
The analysts wrote, “We are lowering our rating on shares of ATHN to Market Perform from Outperform following the recent run in the stock post the Ascension deal and 3Q earnings announcements. While we still like what the company is doing strategically and think they are executing well, we think that the Street is overly optimistic about 2014 and expectations need to be moderated. Since the announcement of the Ascension deal on July 12, 2013 ATHN has risen ~43% (vs. S&P 500 +4%); however, consensus 2014 estimates have remained basically unchanged and fall at the upper end of the 25-30% core revenue growth range that we think is realistic for 2014. We think that the Street is not fully appreciating the dynamics of the business mix which is now more heavily weighted with enterprise and national accounts that take longer to bring live and involve more complex implementations. We still think that Athena is a market share gainer, but the stock is experiencing an overly euphoric market reaction after several enterprise announcements. As we think that consensus estimates for 2014 need to come down, we believe the stock is more likely to trade in line with the market.”
athenahealth (NASDAQ:ATHN) traded down 2.66% on Tuesday, hitting $136.405. The stock had a trading volume of 385,590 shares. athenahealth has a 52 week low of $56.33 and a 52 week high of $141.38. The stock has a 50-day moving average of $111.7 and a 200-day moving average of $100.4. The company’s market cap is $5.067 billion.
athenahealth (NASDAQ:ATHN) last issued its quarterly earnings data on Thursday, October 17th. The company reported $0.29 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.31 by $0.02. The company had revenue of $151.50 million for the quarter, compared to the consensus estimate of $154.80 million. During the same quarter last year, the company posted $0.30 earnings per share. The company’s quarterly revenue was up 43.1% on a year-over-year basis. On average, analysts predict that athenahealth will post $1.03 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Piper Jaffray Cos. set a $181.00 price target on shares of athenahealth in a research note to investors on Monday. They now have an “overweight” rating on the stock. Separately, analysts at Robert W. Baird raised their price target on shares of athenahealth from $104.00 to $125.00 in a research note to investors on Friday. They now have a “neutral” rating on the stock. Finally, analysts at Wells Fargo & Co. reiterated an “outperform” rating on shares of athenahealth in a research note to investors on Friday. They now have a $160.00 price target on the stock. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and six have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $120.50.
In other athenahealth news, CMO Robert Cosinuke sold 6,000 shares of the stock in a transaction that occurred on Thursday, October 10th. The shares were sold at an average price of $108.21, for a total transaction of $649,260.00. Following the transaction, the chief marketing officer now directly owns 53,321 shares of the company’s stock, valued at approximately $5,769,865. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.
athenahealth, Inc (NASDAQ:ATHN), is a business services company, which provides ongoing billing, clinical-related, and other related services to its customers.
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