Model N, Inc. (MODN) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Model N, Inc. (NYSE:MODN) from a hold rating to a buy rating in a report issued on Monday morning. Zacks Investment Research currently has $16.00 target price on the software maker’s stock.
According to Zacks, “Model N reported better-than-expected fourth-quarter fiscal 2017 results. Revenues increased on a year-over-year basis driven by the successful integration of Revitas. Management is also optimistic about the steady progress in the company’s transformation to a 100% Software-as-a-Service (SaaS) based model. 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. We note that the stock has outperformed the industry on a year-to-date basis. However, the company is yet to report profit, which doesn't augur well for investors.”
A number of other analysts also recently issued reports on the stock. BidaskClub downgraded shares of Model N from a buy rating to a hold rating in a report on Wednesday, October 25th. ValuEngine raised shares of Model N from a sell rating to a hold rating in a report on Friday, September 1st. Four analysts have rated the stock with a hold rating and four have given a buy rating to the company. Model N currently has a consensus rating of Buy and an average target price of $14.00.
Shares of Model N (NYSE:MODN) traded down $0.10 during midday trading on Monday, hitting $14.45. 78,400 shares of the stock were exchanged, compared to its average volume of 131,736. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 1.26. Model N has a 12-month low of $7.90 and a 12-month high of $15.05.
Model N (NYSE:MODN) last announced its quarterly earnings results on Tuesday, November 7th. The software maker reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.03. The firm had revenue of $35.61 million for the quarter, compared to the consensus estimate of $34.86 million. Model N had a negative net margin of 30.15% and a negative return on equity of 52.28%. The business’s quarterly revenue was up 24.9% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.28) EPS. equities research analysts forecast that Model N will post -0.64 earnings per share for the current fiscal year.
In other news, CFO David Barter sold 3,596 shares of Model N stock in a transaction that occurred on Tuesday, October 31st. The shares were sold at an average price of $14.65, for a total transaction of $52,681.40. Following the sale, the chief financial officer now owns 111,676 shares in the company, valued at $1,636,053.40. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Amelia Generalis sold 6,298 shares of Model N stock in a transaction that occurred on Tuesday, September 5th. The shares were sold at an average price of $13.35, for a total transaction of $84,078.30. Following the sale, the senior vice president now owns 70,436 shares in the company, valued at approximately $940,320.60. The disclosure for this sale can be found here. 20.40% of the stock is owned by insiders.
Several institutional investors have recently added to or reduced their stakes in MODN. SQN Investors LP increased its position in Model N by 28.8% in the second quarter. SQN Investors LP now owns 2,805,028 shares of the software maker’s stock worth $37,307,000 after purchasing an additional 627,700 shares during the last quarter. Trigran Investments Inc. increased its position in Model N by 14.9% in the third quarter. Trigran Investments Inc. now owns 984,594 shares of the software maker’s stock worth $14,720,000 after purchasing an additional 127,982 shares during the last quarter. Vanguard Group Inc. increased its position in Model N by 3.0% in the second quarter. Vanguard Group Inc. now owns 963,235 shares of the software maker’s stock worth $12,811,000 after purchasing an additional 28,369 shares during the last quarter. Redmile Group LLC increased its position in Model N by 4.4% in the second quarter. Redmile Group LLC now owns 858,314 shares of the software maker’s stock worth $11,416,000 after purchasing an additional 36,000 shares during the last quarter. Finally, Emerald Advisers Inc. PA increased its position in Model N by 5.7% in the second quarter. Emerald Advisers Inc. PA now owns 789,070 shares of the software maker’s stock worth $10,495,000 after purchasing an additional 42,890 shares during the last quarter. Hedge funds and other institutional investors own 65.74% of the company’s stock.
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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