Model N (MODN) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Model N (NYSE:MODN) from a hold rating to a buy rating in a research report released on Friday morning. The firm currently has $18.00 price objective on the software maker’s stock.
According to Zacks, “Model N is a provider of revenue management solutions for life sciences and technology companies. 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 as evident from inconsistent revenue growth.”
Other equities research analysts also recently issued reports about the company. BidaskClub downgraded Model N from a buy rating to a hold rating in a report on Wednesday, October 25th. Dougherty & Co upped their target price on Model N from $17.00 to $20.00 and gave the company a buy rating in a report on Tuesday, December 19th. Raymond James Financial reaffirmed a hold rating on shares of Model N in a report on Monday, December 4th. Finally, JPMorgan Chase & Co. downgraded Model N from an overweight rating to a neutral rating and set a $18.00 target price for the company. in a report on Tuesday, December 12th. Five analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Model N currently has an average rating of Hold and a consensus price target of $18.00.
Model N (NYSE:MODN) last announced its quarterly earnings data on Tuesday, November 7th. The software maker reported ($0.06) earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.09) by $0.03. The business had revenue of $35.61 million during the quarter, compared to analyst estimates of $34.86 million. Model N had a negative return on equity of 55.26% and a negative net margin of 30.15%. The company’s revenue was up 24.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.28) earnings per share. equities research analysts expect that Model N will post -0.64 EPS for the current year.
In related news, Director Alan S. Henricks sold 13,475 shares of the company’s stock in a transaction on Tuesday, November 14th. The stock was sold at an average price of $14.50, for a total transaction of $195,387.50. Following the transaction, the director now directly owns 40,134 shares of the company’s stock, valued at $581,943. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO David Barter sold 3,596 shares of the company’s stock in a transaction on Tuesday, October 31st. The shares were sold at an average price of $14.65, for a total value of $52,681.40. Following the transaction, the chief financial officer now directly owns 111,676 shares in the company, valued at $1,636,053.40. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 21,801 shares of company stock valued at $317,080. 18.90% of the stock is currently owned by company insiders.
Large investors have recently bought and sold shares of the stock. SQN Investors LP increased its position in Model N by 28.8% in the 2nd 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. Lyon Street Capital LLC increased its position in Model N by 113.4% in the 3rd quarter. Lyon Street Capital LLC now owns 576,785 shares of the software maker’s stock worth $8,623,000 after purchasing an additional 306,522 shares during the last quarter. Trigran Investments Inc. increased its position in Model N by 14.9% in the 3rd 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. Allianz Asset Management GmbH increased its position in Model N by 33.7% in the 3rd quarter. Allianz Asset Management GmbH now owns 318,322 shares of the software maker’s stock worth $4,759,000 after purchasing an additional 80,315 shares during the last quarter. Finally, GSA Capital Partners LLP acquired a new position in Model N in the 2nd quarter worth about $670,000. 65.77% of the stock is currently owned by hedge funds and other institutional investors.
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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