Quality Systems (QSII) Raised to Hold at Zacks Investment Research
Quality Systems (NASDAQ:QSII) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “In the last year, Quality Systems underperformed the broader industry in terms of price. However, acquisitions have significantly expanded Quality Systems’ product line over the last couple of years. We are particularly upbeat about the company’s solid performance in the total software, hardware and related revenues. Quality Systems’ solid recurring revenue base is a key catalyst for the quarters to come. Furthermore, the company’s new Entrada and Eagle Dream solutions are likely to drive growth. Of the major concerns, the company’s ongoing sluggishness in the RCM customer base, intensifying competition and a strict regulatory environment are likely to mar the top line. Further, management slashed the high end of the fiscal 2018 earnings guidance, signaling at trouble down the road. The company expects software license and hardware revenues to remain under pressure for the remainder of the fiscal.”
A number of other equities analysts have also recently issued reports on the stock. Jefferies Group reiterated a “hold” rating and issued a $14.50 price target on shares of Quality Systems in a research note on Sunday, October 29th. Royal Bank of Canada started coverage on shares of Quality Systems in a research note on Tuesday, September 19th. They issued an “underperform” rating and a $12.00 price target on the stock. BidaskClub cut shares of Quality Systems from a “hold” rating to a “sell” rating in a research note on Tuesday, December 5th. Cantor Fitzgerald reiterated a “hold” rating and issued a $13.00 price target on shares of Quality Systems in a research note on Thursday, October 26th. Finally, SunTrust Banks reissued a “hold” rating and issued a $15.00 target price on shares of Quality Systems in a research report on Friday, November 17th. Four equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and one has assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $14.81.
Quality Systems (NASDAQ:QSII) last announced its earnings results on Thursday, October 26th. The company reported $0.22 EPS for the quarter, beating the Zacks’ consensus estimate of $0.16 by $0.06. Quality Systems had a net margin of 5.12% and a return on equity of 14.70%. The firm had revenue of $132.61 million for the quarter, compared to analysts’ expectations of $130.15 million. During the same quarter in the previous year, the business posted $0.23 EPS. The company’s quarterly revenue was up 4.3% on a year-over-year basis. equities research analysts expect that Quality Systems will post 0.57 earnings per share for the current year.
A number of large investors have recently modified their holdings of the business. Pinebridge Investments L.P. increased its position in shares of Quality Systems by 1.4% during the 2nd quarter. Pinebridge Investments L.P. now owns 6,113 shares of the company’s stock valued at $105,000 after purchasing an additional 86 shares during the last quarter. Legal & General Group Plc increased its position in shares of Quality Systems by 15.1% during the 1st quarter. Legal & General Group Plc now owns 8,311 shares of the company’s stock valued at $128,000 after purchasing an additional 1,092 shares during the last quarter. Mason Street Advisors LLC purchased a new stake in shares of Quality Systems during the 2nd quarter valued at about $104,000. PNC Financial Services Group Inc. increased its position in shares of Quality Systems by 496.8% during the 1st quarter. PNC Financial Services Group Inc. now owns 8,833 shares of the company’s stock valued at $134,000 after purchasing an additional 7,353 shares during the last quarter. Finally, State of Alaska Department of Revenue increased its position in shares of Quality Systems by 79.6% during the 2nd quarter. State of Alaska Department of Revenue now owns 9,159 shares of the company’s stock valued at $157,000 after purchasing an additional 4,059 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.
About Quality Systems
Quality Systems, Inc (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices.
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