Model N (NYSE:MODN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “The successful integration of Revitas boosted Model N’s performance as well as its customer base. Management is also optimistic about the steady progress in the company’s transformation to a 100% Software-as-a-Service (SaaS) based model. The Revenue Cloud offering for med-tech, pharma and high tech companies is also gaining traction, driving expansion in customer base. Moreover, the transition to cloud-based applications will drive recurring revenue growth in the long term. However, the company is yet to report profit, which doesn't augur well for investors. Moreover, the company is facing stiff competition as evident from inconsistent revenue growth.”

Other equities research analysts have also recently issued reports about the company. BidaskClub cut Model N from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, October 10th. JPMorgan Chase & Co. cut Model N from an “overweight” rating to a “neutral” rating and set a $18.00 price objective on the stock. in a research note on Tuesday, December 12th. Dougherty & Co boosted their price objective on Model N from $17.00 to $20.00 and gave the company a “buy” rating in a research note on Tuesday, December 19th. Finally, Raymond James Financial reiterated a “hold” rating on shares of Model N in a research report on Monday, December 4th. Five analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $17.50.

Shares of Model N (NYSE:MODN) traded down $0.45 during trading on Wednesday, reaching $15.30. The company had a trading volume of 129,200 shares, compared to its average volume of 170,750. Model N has a fifty-two week low of $8.45 and a fifty-two week high of $16.75. The company has a market cap of $454.61, a PE ratio of -11.09 and a beta of 1.17. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.27.

Model N (NYSE:MODN) last announced its quarterly earnings data on Tuesday, November 7th. The software maker reported ($0.06) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.09) by $0.03. Model N had a negative return on equity of 55.26% and a negative net margin of 30.15%. The business had revenue of $35.61 million for the quarter, compared to analysts’ expectations of $34.86 million. During the same period in the previous year, the business posted ($0.28) EPS. The firm’s quarterly revenue was up 24.9% compared to the same quarter last year. research analysts predict that Model N will post -0.64 earnings per share for the current fiscal year.

In related news, CFO David Barter sold 3,596 shares of the company’s stock in a transaction that occurred on Tuesday, October 31st. The shares were sold at an average price of $14.65, for a total value of $52,681.40. Following the transaction, the chief financial officer now directly owns 111,676 shares in the company, valued at $1,636,053.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Alan S. Henricks sold 13,475 shares of the company’s stock in a transaction that occurred on Tuesday, November 14th. The stock was sold at an average price of $14.50, for a total transaction of $195,387.50. Following the completion of the transaction, the director now owns 40,134 shares in the company, valued at $581,943. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 21,801 shares of company stock worth $317,080. Company insiders own 20.40% of the company’s stock.

Hedge funds have recently bought and sold shares of the stock. Trexquant Investment LP bought a new position in shares of Model N in the third quarter worth approximately $154,000. Prudential Financial Inc. purchased a new stake in Model N in the second quarter worth approximately $141,000. Voya Investment Management LLC boosted 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 worth $199,000 after buying an additional 1,915 shares in the last quarter. Goldman Sachs Group Inc. purchased a new stake in Model N in the second quarter worth approximately $221,000. Finally, Alliancebernstein L.P. purchased a new stake in Model N in the second quarter worth approximately $222,000. Institutional investors own 65.77% of the company’s stock.

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Model N Company Profile

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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Analyst Recommendations for Model N (NYSE:MODN)

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