Omnicell, Inc. (OMCL) Downgraded to “Strong Sell” at Zacks Investment Research
Omnicell, Inc. (NASDAQ:OMCL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Omnicell exited third-quarter 2017 on a mixed note with earnings beating the Zacks Consensus Estimate and revenues missing the same. Also, weak margin scenario is a matter of concern. The company’s lowering of the high end of the full-year 2017 adjusted revenue guidanceis indicative of this overall dull scenario to remain. A tough competitive landscape also acts as a dampener. Over the last three months, Omnicell’s shares have been trading below the broader industry.However, on a positive note, the year-over-year increase in earnings and revenues was impressive. The company witnessed balanced growth across all its business lines in the quarter. We are encouraged to note that the company is working on product innovation through R&D. Over the recent past, Omnicell has been observed to gain consistently from series of product launches (the latest being XT Series Automated Supply Dispensing system) and strategic partnerships.”
OMCL has been the subject of several other research reports. Benchmark Co. raised their price objective on shares of Omnicell from $55.00 to $67.00 and gave the stock a “buy” rating in a report on Tuesday, September 5th. BidaskClub lowered shares of Omnicell from a “strong-buy” rating to a “buy” rating in a report on Monday, July 31st. Piper Jaffray Companies reissued a “hold” rating and issued a $40.00 price target on shares of Omnicell in a report on Sunday, July 30th. Dougherty & Co raised their price target on shares of Omnicell from $45.00 to $49.00 and gave the company a “buy” rating in a report on Friday, July 28th. Finally, Oppenheimer Holdings, Inc. reissued a “buy” rating and issued a $55.00 price target on shares of Omnicell in a report on Thursday, October 19th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have issued a buy rating to the company’s stock. Omnicell has an average rating of “Buy” and an average target price of $54.86.
Omnicell (NASDAQ:OMCL) last posted its quarterly earnings data on Thursday, October 26th. The company reported $0.42 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.42. The company had revenue of $186.78 million during the quarter, compared to analyst estimates of $192.45 million. Omnicell had a negative net margin of 0.51% and a negative return on equity of 0.79%. The company’s revenue was up 5.7% on a year-over-year basis. During the same quarter last year, the business posted $0.40 earnings per share. Equities research analysts anticipate that Omnicell will post $1.30 EPS for the current year.
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In related news, VP Jorge R. Taborga sold 20,719 shares of the firm’s stock in a transaction that occurred on Monday, August 7th. The shares were sold at an average price of $50.98, for a total value of $1,056,254.62. Following the completion of the sale, the vice president now owns 53,270 shares of the company’s stock, valued at $2,715,704.60. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Dan S. Johnston sold 16,400 shares of Omnicell stock in a transaction on Friday, August 18th. The stock was sold at an average price of $48.86, for a total transaction of $801,304.00. Following the sale, the executive vice president now directly owns 51,621 shares of the company’s stock, valued at approximately $2,522,202.06. The disclosure for this sale can be found here. In the last three months, insiders sold 106,594 shares of company stock valued at $5,379,391. 3.77% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in OMCL. Oppenheimer Asset Management Inc. acquired a new stake in Omnicell during the 1st quarter worth $170,000. Turner Investments LLC acquired a new stake in Omnicell during the 2nd quarter worth $181,000. Riverhead Capital Management LLC grew its holdings in Omnicell by 76.3% during the 2nd quarter. Riverhead Capital Management LLC now owns 4,230 shares of the company’s stock worth $182,000 after acquiring an additional 1,830 shares during the period. Flinton Capital Management LLC grew its holdings in Omnicell by 74.6% during the 2nd quarter. Flinton Capital Management LLC now owns 4,216 shares of the company’s stock worth $182,000 after acquiring an additional 1,802 shares during the period. Finally, Sei Investments Co. grew its holdings in Omnicell by 36.4% during the 2nd quarter. Sei Investments Co. now owns 4,652 shares of the company’s stock worth $200,000 after acquiring an additional 1,242 shares during the period.
Omnicell Company Profile
Omnicell, Inc provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence.
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