BidaskClub Downgrades HMS (HMSY) to Sell

HMS (NASDAQ:HMSY) was downgraded by BidaskClub from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

Several other research analysts also recently weighed in on HMSY. Jefferies Group restated a “hold” rating and issued a $21.50 price target on shares of HMS in a research note on Tuesday, August 22nd. Robert W. Baird restated a “buy” rating and issued a $22.00 price target on shares of HMS in a research note on Thursday, August 31st. Cantor Fitzgerald restated a “buy” rating and issued a $23.00 price target on shares of HMS in a research note on Tuesday, September 26th. Canaccord Genuity restated a “buy” rating and issued a $22.00 price target on shares of HMS in a research note on Monday, October 30th. Finally, Zacks Investment Research downgraded HMS from a “hold” rating to a “sell” rating in a research note on Wednesday, November 8th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating, four have assigned a buy rating and two have assigned a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $20.39.

Shares of HMS (HMSY) traded up $0.39 during trading hours on Tuesday, hitting $16.67. The company had a trading volume of 1,810,000 shares, compared to its average volume of 695,537. The company has a market cap of $1,401.68, a P/E ratio of 32.06, a PEG ratio of 2.77 and a beta of 0.87. HMS has a 52 week low of $11.01 and a 52 week high of $20.90.

HMS (NASDAQ:HMSY) last announced its quarterly earnings data on Friday, November 3rd. The business services provider reported $0.19 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.22 by ($0.03). The company had revenue of $125.70 million for the quarter, compared to the consensus estimate of $147.62 million. HMS had a net margin of 4.94% and a return on equity of 7.93%. The company’s revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.24 earnings per share. sell-side analysts expect that HMS will post 0.55 EPS for the current fiscal year.

HMS declared that its board has approved a share repurchase plan on Friday, November 3rd that permits the company to buyback $50.00 million in shares. This buyback authorization permits the business services provider to purchase shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

In other news, Chairman William C. Lucia sold 29,894 shares of the stock in a transaction that occurred on Wednesday, September 27th. The stock was sold at an average price of $20.00, for a total transaction of $597,880.00. Following the completion of the transaction, the chairman now directly owns 222,745 shares in the company, valued at approximately $4,454,900. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.20% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of HMSY. Bank of New York Mellon Corp raised its holdings in HMS by 49.7% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,723,768 shares of the business services provider’s stock valued at $34,235,000 after buying an additional 572,442 shares during the period. Kornitzer Capital Management Inc. KS purchased a new stake in HMS during the 3rd quarter valued at $8,673,000. Citadel Advisors LLC raised its holdings in HMS by 274.2% during the 2nd quarter. Citadel Advisors LLC now owns 370,454 shares of the business services provider’s stock valued at $6,854,000 after buying an additional 271,448 shares during the period. Koch Industries Inc. purchased a new stake in HMS during the 2nd quarter valued at $197,000. Finally, FMR LLC purchased a new stake in HMS during the 2nd quarter valued at $3,617,000. Hedge funds and other institutional investors own 96.27% of the company’s stock.

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HMS Company Profile

HMS Holdings Corp. is a holding company. The Company, through its subsidiaries, operates in the United States healthcare insurance benefit cost containment marketplace. It provides coordination of benefits services to government, and private healthcare payers and sponsors. Its payment integrity services ensure that healthcare claims billed are accurate and appropriate.

Analyst Recommendations for HMS (NASDAQ:HMSY)

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