Quality Systems, Inc. (QSII) Downgraded by Zacks Investment Research to “Sell”
Zacks Investment Research downgraded shares of Quality Systems, Inc. (NASDAQ:QSII) from a hold rating to a sell rating in a research note released on Wednesday morning.
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 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. 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.”
A number of other equities research analysts also recently issued reports on the stock. BidaskClub raised shares of Quality Systems from a buy rating to a strong-buy rating in a research note on Tuesday, June 13th. Royal Bank Of Canada started coverage on shares of Quality Systems in a research note on Tuesday. They set an underperform rating and a $12.00 price target on the stock. TheStreet downgraded shares of Quality Systems from a b- rating to a c+ rating in a research note on Friday, August 18th. Leerink Swann reaffirmed a market perform rating and set a $16.00 price target (up previously from $14.00) on shares of Quality Systems in a research note on Wednesday, May 31st. Finally, Piper Jaffray Companies reaffirmed an overweight rating and set a $20.00 price target (up previously from $16.00) on shares of Quality Systems in a research note on Tuesday, August 1st. Five research analysts have rated the stock with a sell rating, nine have given a hold rating and one has issued a buy rating to the company. Quality Systems currently has a consensus rating of Hold and a consensus price target of $14.38.
Shares of Quality Systems (NASDAQ QSII) traded up 1.42% during midday trading on Wednesday, reaching $15.02. 61,997 shares of the company’s stock were exchanged. The stock’s 50 day moving average is $15.78 and its 200-day moving average is $15.60. Quality Systems has a 12-month low of $10.61 and a 12-month high of $17.74. The stock has a market cap of $951.77 million, a PE ratio of 41.96 and a beta of 0.89.
Quality Systems (NASDAQ:QSII) last released its quarterly earnings results on Tuesday, August 1st. The company reported $0.17 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.14 by $0.03. The company had revenue of $130.90 million for the quarter, compared to the consensus estimate of $126.75 million. Quality Systems had a net margin of 4.40% and a return on equity of 15.49%. Quality Systems’s revenue 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 expect that Quality Systems will post $0.68 EPS for the current year.
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In other news, Director Russell Pflueger sold 20,968 shares of the company’s stock in a transaction dated Friday, August 18th. The shares were sold at an average price of $15.75, for a total value of $330,246.00. Following the transaction, the director now directly owns 46,745 shares in the company, valued at $736,233.75. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 17.90% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Pinebridge Investments L.P. grew its holdings in shares of Quality Systems by 1.4% in the second quarter. Pinebridge Investments L.P. now owns 6,113 shares of the company’s stock worth $105,000 after purchasing an additional 86 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings 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 purchasing an additional 7,353 shares during the last quarter. State of Alaska Department of Revenue grew its holdings 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 purchasing an additional 4,059 shares during the last quarter. Municipal Employees Retirement System of Michigan grew its holdings 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 purchasing an additional 260 shares during the last quarter. Finally, BNP Paribas Arbitrage SA grew its holdings 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 purchasing an additional 952 shares during the last quarter. Hedge funds and other institutional investors own 69.57% of the company’s stock.
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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