Zacks Investment Research Downgrades Model N, Inc. (MODN) to Hold
Model N, Inc. (NYSE:MODN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “Model N is a leading provider of revenue management solutions primarily to life sciences and high technology companies. Third-quarter results reflected company's expanding product portfolio post the Revitas acquisition. Also, a growing customer base, and cost synergies from acquisitions are benefiting 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 industry on a year-to-date basis. However, lack of international customers, mounting operating loss, continuing cash burn and stretched valuation are major headwinds.”
Several other equities analysts have also weighed in on MODN. BidaskClub raised Model N from a “buy” rating to a “strong-buy” rating in a report on Thursday. Dougherty & Co began coverage on Model N in a report on Thursday, June 29th. They set a “buy” rating and a $17.00 price objective for the company. Chardan Capital began coverage on Model N in a report on Friday, May 19th. They set a “buy” rating and a $16.00 price objective for the company. Finally, Craig Hallum raised Model N from a “hold” rating to a “buy” rating in a report on Tuesday, May 9th. Three analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. Model N presently has a consensus rating of “Buy” and a consensus price target of $13.50.
Model N (NYSE MODN) traded down 0.74% during mid-day trading on Thursday, hitting $13.35. The stock had a trading volume of 58,118 shares. Model N has a 1-year low of $6.97 and a 1-year high of $13.70. The stock’s market cap is $388.39 million. The firm’s 50-day moving average price is $13.08 and its 200-day moving average price is $11.64.
Model N (NYSE:MODN) last released its earnings results on Tuesday, August 8th. The software maker reported ($0.23) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.27) by $0.04. The company had revenue of $34.20 million during the quarter, compared to analyst estimates of $34.41 million. Model N had a negative return on equity of 52.59% and a negative net margin of 30.85%. Model N’s quarterly revenue was up 22.6% on a year-over-year basis. During the same period in the prior year, the company posted ($0.16) earnings per share. On average, equities analysts expect that Model N will post ($0.62) earnings per share for the current year.
In other Model N news, SVP Amelia Generalis sold 3,758 shares of the stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $13.30, for a total transaction of $49,981.40. Following the completion of the transaction, the senior vice president now directly owns 76,734 shares of the company’s stock, valued at $1,020,562.20. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 20.40% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently made changes to their positions in the stock. Prescott Group Capital Management L.L.C. bought a new stake in Model N during the second quarter valued at about $140,000. Prudential Financial Inc. bought a new stake in Model N during the second quarter valued at about $141,000. American International Group Inc. increased its stake in Model N by 7.1% in the first quarter. American International Group Inc. now owns 13,678 shares of the software maker’s stock valued at $143,000 after buying an additional 904 shares in the last quarter. Voya Investment Management LLC increased its stake in Model N by 14.7% in the second quarter. Voya Investment Management LLC now owns 14,963 shares of the software maker’s stock valued at $199,000 after buying an additional 1,915 shares in the last quarter. Finally, Goldman Sachs Group Inc. bought a new stake in Model N during the second quarter valued at about $221,000. 66.12% of the stock is owned by institutional investors and hedge funds.
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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