Model N (MODN) Raised to “Buy” at Zacks Investment Research
Model N (NYSE:MODN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday. The brokerage currently has a $18.00 price objective on the software maker’s stock. Zacks Investment Research‘s target price indicates a potential upside of 15.02% from the stock’s current price.
According to Zacks, “Model N is a provider of revenue management solutions for life sciences and technology companies. 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. Model N has outperformed the industry in the last one year. 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 facing stiff competition as evident from inconsistent revenue growth.”
Several other equities research analysts have also recently commented on MODN. BidaskClub cut Model N from a “buy” rating to a “hold” rating in a research note on Wednesday, October 25th. Dougherty & Co boosted their price target on Model N from $17.00 to $20.00 and gave the company a “buy” rating in a research note on Tuesday, December 19th. Raymond James Financial reissued a “hold” rating on shares of Model N in a research note on Monday, December 4th. Finally, JPMorgan Chase & Co. cut Model N from an “overweight” rating to a “neutral” rating and set a $18.00 price target for the company. in a research note on Tuesday, December 12th. Four equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $18.00.
Model N (NYSE:MODN) last issued its earnings results on Tuesday, November 7th. The software maker reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.03. The company had revenue of $35.61 million for the quarter, compared to the consensus estimate of $34.86 million. Model N had a negative return on equity of 55.26% and a negative net margin of 30.15%. The firm’s quarterly revenue was up 24.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.28) EPS. equities analysts predict that Model N will post -0.64 earnings per share for the current year.
In other Model N news, CFO David Barter sold 3,596 shares of the company’s stock in a transaction that occurred on Tuesday, October 31st. The stock was sold at an average price of $14.65, for a total transaction of $52,681.40. Following the completion of the sale, the chief financial officer now owns 111,676 shares of the company’s stock, valued at $1,636,053.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 value of $195,387.50. Following the sale, the director now directly owns 40,134 shares of the company’s stock, valued at approximately $581,943. The disclosure for this sale can be found here. In the last three months, insiders sold 21,801 shares of company stock valued at $317,080. 20.40% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in the business. SQN Investors LP boosted its position in Model N by 28.8% during the second quarter. SQN Investors LP now owns 2,805,028 shares of the software maker’s stock worth $37,307,000 after purchasing an additional 627,700 shares during the period. Trigran Investments Inc. boosted its position in Model N by 14.9% during the third quarter. Trigran Investments Inc. now owns 984,594 shares of the software maker’s stock worth $14,720,000 after purchasing an additional 127,982 shares during the period. Vanguard Group Inc. boosted its position in Model N by 3.0% during the second quarter. Vanguard Group Inc. now owns 963,235 shares of the software maker’s stock worth $12,811,000 after purchasing an additional 28,369 shares during the period. Redmile Group LLC boosted its position in Model N by 4.4% during the second quarter. Redmile Group LLC now owns 858,314 shares of the software maker’s stock worth $11,416,000 after purchasing an additional 36,000 shares during the period. Finally, Lyon Street Capital LLC boosted its position in Model N by 113.4% during the third quarter. Lyon Street Capital LLC now owns 576,785 shares of the software maker’s stock worth $8,623,000 after purchasing an additional 306,522 shares during the period. 65.77% of the stock is owned by hedge funds and other institutional investors.
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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