Model N (NYSE:MODN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm presently has a $21.00 price target on the software maker’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 12.00% from the company’s previous close.
According to Zacks, “Model N reported stellar first-quarter results, where in both revenues and earnings increased year over year. 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 from peers which remains a major headwind.”
A number of other analysts have also issued reports on MODN. Raymond James Financial reissued a “hold” rating on shares of Model N in a research note on Monday, December 4th. ValuEngine raised Model N from a “sell” rating to a “hold” rating in a research note on Friday, February 2nd. Dougherty & Co raised their price target on Model N from $17.00 to $20.00 and gave the stock a “buy” rating in a research note on Tuesday, December 19th. JMP Securities raised Model N from a “market perform” rating to an “outperform” rating in a research note on Wednesday, February 7th. Finally, JPMorgan Chase & Co. lowered Model N from an “overweight” rating to a “neutral” rating and set a $18.00 price target on the stock. in a research note on Tuesday, December 12th. Four analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Model N currently has an average rating of “Buy” and a consensus target price of $18.75.
Model N (NYSE:MODN) last issued its quarterly earnings results on Tuesday, February 6th. The software maker reported $0.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.09. Model N had a negative return on equity of 55.03% and a negative net margin of 26.17%. The firm had revenue of $39.10 million for the quarter, compared to analyst estimates of $37.14 million. During the same period last year, the company earned ($0.15) EPS. The firm’s quarterly revenue was up 39.1% on a year-over-year basis. equities analysts predict that Model N will post -0.57 earnings per share for the current year.
In other news, SVP Neeraj Gokhale sold 1,628 shares of the firm’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $16.94, for a total value of $27,578.32. Following the transaction, the senior vice president now directly owns 81,389 shares in the company, valued at approximately $1,378,729.66. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Mark Albert Anderson sold 10,153 shares of the firm’s stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $16.65, for a total value of $169,047.45. The disclosure for this sale can be found here. Company insiders own 18.90% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. Trexquant Investment LP purchased a new position in shares of Model N in the 3rd quarter worth about $154,000. MetLife Investment Advisors LLC purchased a new stake in shares of Model N during the 4th quarter valued at about $182,000. Advisor Group Inc. raised its holdings in shares of Model N by 24,927.1% during the 4th quarter. Advisor Group Inc. now owns 14,766 shares of the software maker’s stock valued at $233,000 after buying an additional 14,707 shares during the period. Voya Investment Management LLC raised its holdings in shares of Model N by 14.7% during the 2nd quarter. Voya Investment Management LLC now owns 14,963 shares of the software maker’s stock valued at $199,000 after buying an additional 1,915 shares during the period. Finally, Goldman Sachs Group Inc. purchased a new stake in shares of Model N during the 2nd quarter valued at about $221,000. Institutional investors own 62.71% of the company’s stock.
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About Model N
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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