Quality Systems (QSII) Cut to “Sell” at Zacks Investment Research

Quality Systems (NASDAQ:QSII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

According to Zacks, “Quality Systems had an unfavorable run on the bourses over the last year. Of the major concerns, intensifying competition in the HCIT markets is likely to keep the company’s margins under pressure. Further, the company expects software license and hardware revenues to remain under pressure for the remainder of the fiscal. Operating expenses are also high for Quality Systems due to acquisition-driven costs. Continued acquisition poses integration risks for the acquiring company.However, Quality Systems ended the third quarter on a positive note, wherein adjusted earnings came in line with the Zacks consensus estimate. Acquisitions have significantly expanded Quality Systems’ product line over the last couple of years. the company’s solid recurring revenue base is a key catalyst. Revenues are also expected to be benefitted from EagleDream software platform, which has been enjoying favorable market response.”

QSII has been the topic of several other research reports. Piper Jaffray Companies reaffirmed a “buy” rating and issued a $17.00 price target on shares of Quality Systems in a report on Friday, January 26th. Jefferies Group reaffirmed a “hold” rating and issued a $14.50 price target on shares of Quality Systems in a report on Sunday, October 29th. BidaskClub cut Quality Systems from a “sell” rating to a “strong sell” rating in a report on Saturday, December 30th. Cantor Fitzgerald reaffirmed a “hold” rating and issued a $13.00 price target on shares of Quality Systems in a report on Thursday, October 26th. Finally, Royal Bank of Canada set a $12.00 price target on Quality Systems and gave the company a “sell” rating in a report on Friday, October 27th. Five investment analysts have rated the stock with a sell rating, six have assigned a hold rating and one has assigned a buy rating to the company’s stock. Quality Systems has a consensus rating of “Hold” and an average price target of $14.44.

Shares of Quality Systems (NASDAQ:QSII) traded down $0.04 during trading hours on Monday, reaching $12.59. The company had a trading volume of 289,400 shares, compared to its average volume of 370,363. Quality Systems has a 1 year low of $12.25 and a 1 year high of $17.74. The company has a market capitalization of $802.16, a PE ratio of 44.96, a price-to-earnings-growth ratio of 2.88 and a beta of 0.73. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.19 and a current ratio of 1.19.

Quality Systems (NASDAQ:QSII) last posted its quarterly earnings results on Thursday, January 25th. The company reported $0.15 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.15. The company had revenue of $131.70 million for the quarter, compared to analysts’ expectations of $130.63 million. Quality Systems had a return on equity of 12.08% and a net margin of 3.39%. The firm’s revenue was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.23 earnings per share. equities analysts predict that Quality Systems will post 0.56 earnings per share for the current fiscal year.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. The Manufacturers Life Insurance Company grew its position in Quality Systems by 0.9% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 40,466 shares of the company’s stock worth $696,000 after purchasing an additional 366 shares in the last quarter. Thrivent Financial For Lutherans grew its position in Quality Systems by 8.3% during the 2nd quarter. Thrivent Financial For Lutherans now owns 28,070 shares of the company’s stock worth $483,000 after purchasing an additional 2,150 shares in the last quarter. Voya Investment Management LLC grew its position in Quality Systems by 13.4% during the 2nd quarter. Voya Investment Management LLC now owns 23,644 shares of the company’s stock worth $407,000 after purchasing an additional 2,794 shares in the last quarter. Parametric Portfolio Associates LLC grew its position in Quality Systems by 3.4% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 120,751 shares of the company’s stock worth $2,078,000 after purchasing an additional 3,954 shares in the last quarter. Finally, Sterling Capital Management LLC grew its position in Quality Systems by 10.1% during the 2nd quarter. Sterling Capital Management LLC now owns 54,195 shares of the company’s stock worth $933,000 after purchasing an additional 4,984 shares in the last quarter. Hedge funds and other institutional investors own 71.80% of the company’s stock.

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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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