Zacks Investment Research Upgrades Model N, Inc. (NYSE:MODN) to Hold
Model N, Inc. (NYSE:MODN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Model N is a leading provider of revenue management solutions primarily to life sciences and high technology companies. The company is expanding its product portfolio post the Revitas acquisition. Also, a growing customer base, and cost synergies from acquisitions are likely to benefit the company. The company continues to win deals both in the life sciences and high technology market that will drive top-line growth. Moreover, the transition to cloud-based applications will drive recurring revenue growth in the long term. We note that the company has outperformed the broader industry on a year-to-date basis. Meanwhile, estimates have been stable lately ahead of the company's Q3 earnings release. The company has a positive record of earnings surprise in the recent quarters. However, lack of international customers, mounting operating loss, continuing cash burn and stretched valuation are major headwinds.”
A number of other research analysts have also recently commented on the company. Craig Hallum upgraded Model N from a “hold” rating to a “buy” rating in a report on Tuesday, May 9th. Chardan Capital started coverage on Model N in a report on Friday, May 19th. They issued a “buy” rating and a $16.00 price objective on the stock. Finally, Dougherty & Co started coverage on Model N in a report on Thursday, June 29th. They issued a “buy” rating and a $17.00 price objective on the stock. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $13.29.
Model N (MODN) traded up 0.191% during midday trading on Monday, hitting $13.125. The stock had a trading volume of 29,674 shares. Model N has a 12-month low of $6.98 and a 12-month high of $13.87. The firm has a 50-day moving average of $12.88 and a 200-day moving average of $10.62. The company’s market cap is $378.01 million.
Model N (NYSE:MODN) last issued its earnings results on Monday, May 8th. The software maker reported ($0.34) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.35) by $0.01. Model N had a negative return on equity of 50.03% and a negative net margin of 30.99%. The business had revenue of $33.30 million for the quarter, compared to analysts’ expectations of $33.74 million. During the same period in the previous year, the firm posted ($0.21) EPS. The business’s revenue for the quarter was up 27.6% compared to the same quarter last year. Equities research analysts forecast that Model N will post ($0.66) EPS for the current year.
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A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. purchased a new position in Model N during the fourth quarter worth approximately $3,057,000. UBS Group AG boosted its position in Model N by 5,688.4% in the first quarter. UBS Group AG now owns 230,494 shares of the software maker’s stock worth $2,409,000 after buying an additional 226,512 shares during the period. FIL Ltd purchased a new position in Model N during the first quarter worth approximately $1,195,000. Western Standard LLC purchased a new position in Model N during the first quarter worth approximately $980,000. Finally, Essex Investment Management Co. LLC purchased a new position in Model N during the first quarter worth approximately $568,000. Hedge funds and other institutional investors own 66.85% of the company’s stock.
About Model N
Model N, Inc is a provider of revenue management solutions for life science and technology companies. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process.
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