Zacks Investment Research Downgrades Quality Systems, Inc. (NASDAQ:QSII) to Sell
Quality Systems, Inc. (NASDAQ:QSII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday.
According to Zacks, “Despite outpacing the Zacks Consensus Estimate on both the counts in the first quarter, a sluggish global economy, tough competition and a strict regulatory environment are primary headwinds for Quality Systems. Furthermore, downbeat earnings guidance for fiscal 2018 signals at looming concerns. Quality Systems’ solid recurring revenue base is a positive. However, it comes from the lower margin Electronic data interchange (EDI) and RCM services. We are upbeat about the company’s solid performance at the System’s software, hardware and related segments. However massive growth at the segment was offset by lower software license and hardware sales. Quality Systems continues to acquire businesses to enhance its revenue opportunities. The latest deal with EagleDream Health deserves a special mention in this regard. The company has outperformed the broader industry with respect to price over the last one year.”
QSII has been the subject of a number of other reports. Jefferies Group LLC reissued a “hold” rating and issued a $15.50 price target (up from $13.00) on shares of Quality Systems in a report on Wednesday. Piper Jaffray Companies reissued an “overweight” rating and issued a $20.00 price target (up from $16.00) on shares of Quality Systems in a report on Tuesday, August 1st. BidaskClub downgraded Quality Systems from a “strong-buy” rating to a “buy” rating in a report on Monday, July 31st. Finally, Leerink Swann reissued a “market perform” rating and issued a $16.00 price target (up from $14.00) on shares of Quality Systems in a report on Wednesday, May 31st. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $14.50.
Quality Systems (NASDAQ:QSII) traded up 1.83% during midday trading on Thursday, reaching $16.13. 304,290 shares of the company’s stock were exchanged. The firm’s 50 day moving average is $17.11 and its 200 day moving average is $15.39. The firm has a market capitalization of $1.02 billion, a price-to-earnings ratio of 45.06 and a beta of 0.89. Quality Systems has a 52 week low of $10.60 and a 52 week high of $17.74.
Quality Systems (NASDAQ:QSII) last issued its earnings results on Tuesday, August 1st. The company reported $0.17 EPS for the quarter, beating the Zacks’ consensus estimate of $0.14 by $0.03. The firm had revenue of $130.90 million for the quarter, compared to analyst estimates of $126.75 million. Quality Systems had a return on equity of 15.49% and a net margin of 4.40%. Quality Systems’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.15 earnings per share. On average, equities analysts anticipate that Quality Systems will post $0.68 earnings per share for the current year.
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A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. increased its position in shares of Quality Systems by 496.8% in the first quarter. PNC Financial Services Group Inc. now owns 8,833 shares of the company’s stock worth $134,000 after buying an additional 7,353 shares during the last quarter. Budros Ruhlin & Roe Inc. bought a new position in shares of Quality Systems during the first quarter worth about $152,000. State of Alaska Department of Revenue increased its position in shares of Quality Systems by 79.6% in the second quarter. State of Alaska Department of Revenue now owns 9,159 shares of the company’s stock worth $157,000 after buying an additional 4,059 shares during the last quarter. Municipal Employees Retirement System of Michigan increased its position in shares of Quality Systems by 2.5% in the first quarter. Municipal Employees Retirement System of Michigan now owns 10,500 shares of the company’s stock worth $160,000 after buying an additional 260 shares during the last quarter. Finally, BNP Paribas Arbitrage SA increased its position in shares of Quality Systems by 9.8% in the first quarter. BNP Paribas Arbitrage SA now owns 10,683 shares of the company’s stock worth $163,000 after buying an additional 952 shares during the last quarter. 66.20% of the stock is owned by institutional investors.
Quality Systems Company Profile
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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