WageWorks (WAGE) Rating Lowered to Hold at Zacks Investment Research

WageWorks (NYSE:WAGE) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Saturday.

According to Zacks, “WageWorks, Inc. is an on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits, or CDBs, in the United States. The Company administers and operates an array of CDBs, including spending account management programs, such as health and dependent care flexible spending accounts, health savings accounts, health reimbursement arrangements and commuter benefits, such as transit and parking programs. The Company delivers its CDB programs through a benefits-as-a-service delivery model. WageWorks, Inc. is headquartered in San Mateo, California. “

Several other analysts also recently commented on the stock. ValuEngine upgraded shares of WageWorks from a “sell” rating to a “hold” rating in a research report on Friday, December 1st. Needham & Company LLC reiterated a “buy” rating and issued a $82.00 price target on shares of WageWorks in a research report on Friday, October 6th. Stifel Nicolaus reiterated a “buy” rating and issued a $80.00 price target (down previously from $85.00) on shares of WageWorks in a research report on Thursday, November 9th. Finally, BidaskClub downgraded shares of WageWorks from a “sell” rating to a “strong sell” rating in a research report on Thursday, November 9th. One analyst has rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company’s stock. WageWorks presently has an average rating of “Hold” and a consensus price target of $79.75.

Shares of WageWorks (NYSE WAGE) traded down $0.65 during trading on Friday, hitting $61.25. 256,151 shares of the stock traded hands, compared to its average volume of 265,831. WageWorks has a fifty-two week low of $56.90 and a fifty-two week high of $80.50. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.38 and a current ratio of 1.38. The firm has a market cap of $2,453.50, a PE ratio of 52.35, a price-to-earnings-growth ratio of 2.77 and a beta of 0.90.

WageWorks (NYSE:WAGE) last issued its earnings results on Wednesday, November 8th. The business services provider reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.04. WageWorks had a net margin of 9.87% and a return on equity of 9.60%. The business had revenue of $115.70 million during the quarter, compared to analysts’ expectations of $117.09 million. During the same quarter in the prior year, the business posted $0.34 EPS. The company’s revenue for the quarter was up 30.1% on a year-over-year basis. analysts expect that WageWorks will post 1.25 earnings per share for the current year.

In other WageWorks news, Director John William Larson sold 30,500 shares of the company’s stock in a transaction on Tuesday, November 28th. The shares were sold at an average price of $63.76, for a total transaction of $1,944,680.00. Following the completion of the transaction, the director now owns 42,930 shares in the company, valued at approximately $2,737,216.80. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Kimberly L. Wilford sold 50,000 shares of the company’s stock in a transaction on Monday, November 13th. The stock was sold at an average price of $62.13, for a total transaction of $3,106,500.00. Following the transaction, the insider now owns 93,238 shares of the company’s stock, valued at approximately $5,792,876.94. The disclosure for this sale can be found here. 3.54% of the stock is owned by corporate insiders.

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. increased its holdings in shares of WageWorks by 144,950.2% in the 1st quarter. BlackRock Inc. now owns 4,392,119 shares of the business services provider’s stock valued at $317,551,000 after purchasing an additional 4,389,091 shares in the last quarter. TimesSquare Capital Management LLC increased its holdings in shares of WageWorks by 46.2% in the 2nd quarter. TimesSquare Capital Management LLC now owns 2,422,884 shares of the business services provider’s stock valued at $162,818,000 after purchasing an additional 765,715 shares in the last quarter. Eagle Asset Management Inc. increased its holdings in shares of WageWorks by 169.2% in the 2nd quarter. Eagle Asset Management Inc. now owns 966,101 shares of the business services provider’s stock valued at $64,921,000 after purchasing an additional 607,164 shares in the last quarter. Marshall Wace North America L.P. increased its holdings in shares of WageWorks by 3,456.3% in the 2nd quarter. Marshall Wace North America L.P. now owns 456,954 shares of the business services provider’s stock valued at $30,616,000 after purchasing an additional 444,105 shares in the last quarter. Finally, Victory Capital Management Inc. increased its holdings in shares of WageWorks by 24,301.3% in the 2nd quarter. Victory Capital Management Inc. now owns 443,859 shares of the business services provider’s stock valued at $29,827,000 after purchasing an additional 442,040 shares in the last quarter.

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About WageWorks

WageWorks, Inc is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits.

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