Zacks Investment Research upgraded shares of Quality Systems (NASDAQ:QSII) from a sell rating to a hold rating in a report issued on Tuesday morning.

According to Zacks, “In the last year, Quality Systems underperformed the broader industry in terms of price. However, acquisitions have significantly expanded Quality Systems’ product line over the last couple of years. We are particularly upbeat about the company’s solid performance in the total software, hardware and related revenues. Quality Systems’ solid recurring revenue base is a key catalyst for the quarters to come. Furthermore, the company’s new Entrada and Eagle Dream solutions are likely to drive growth. Of the major concerns, the company’s ongoing sluggishness in the RCM customer base, intensifying competition and a strict regulatory environment are likely to mar the top line. Further, management slashed the high end of the fiscal 2018 earnings guidance, signaling at trouble down the road. The company expects software license and hardware revenues to remain under pressure for the remainder of the fiscal.”

A number of other research analysts have also commented on QSII. Royal Bank of Canada started coverage on Quality Systems in a research report on Tuesday, September 19th. They issued an underperform rating and a $12.00 price objective on the stock. Jefferies Group reiterated a hold rating and issued a $15.50 price objective on shares of Quality Systems in a research report on Sunday, October 8th. Robert W. Baird reiterated a hold rating and issued a $15.00 price objective on shares of Quality Systems in a research report on Tuesday, October 17th. Cantor Fitzgerald reiterated a hold rating and issued a $13.00 price objective on shares of Quality Systems in a research report on Thursday, October 26th. Finally, SunTrust Banks reiterated a hold rating and issued a $15.00 price objective on shares of Quality Systems in a research report on Friday, November 17th. Four equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and one has given a buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $14.81.

Quality Systems (QSII) traded up $0.16 during mid-day trading on Tuesday, reaching $13.49. The company had a trading volume of 294,798 shares, compared to its average volume of 278,860. Quality Systems has a 12-month low of $12.61 and a 12-month high of $17.74. The firm has a market cap of $869.24, a PE ratio of 31.37, a price-to-earnings-growth ratio of 3.05 and a beta of 0.83. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.23 and a quick ratio of 1.22.

Quality Systems (NASDAQ:QSII) last announced its quarterly earnings data on Thursday, October 26th. The company reported $0.22 EPS for the quarter, beating the Zacks’ consensus estimate of $0.16 by $0.06. The firm had revenue of $132.61 million for the quarter, compared to analyst estimates of $130.15 million. Quality Systems had a return on equity of 14.70% and a net margin of 5.12%. The business’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period last year, the company earned $0.23 EPS. equities research analysts forecast that Quality Systems will post 0.57 earnings per share for the current year.

Several large investors have recently bought and sold shares of the company. Fox Run Management L.L.C. bought a new position in shares of Quality Systems in the 4th quarter worth $367,000. Algert Global LLC boosted its position in shares of Quality Systems by 17.9% in the 3rd quarter. Algert Global LLC now owns 172,267 shares of the company’s stock worth $2,710,000 after purchasing an additional 26,097 shares during the last quarter. Magnetar Financial LLC bought a new position in shares of Quality Systems in the 3rd quarter worth $684,000. Pinebridge Investments L.P. boosted its position in shares of Quality Systems by 795.8% in the 3rd quarter. Pinebridge Investments L.P. now owns 54,762 shares of the company’s stock worth $861,000 after purchasing an additional 48,649 shares during the last quarter. Finally, OxFORD Asset Management LLP boosted its position in shares of Quality Systems by 42.2% in the 3rd quarter. OxFORD Asset Management LLP now owns 250,246 shares of the company’s stock worth $3,914,000 after purchasing an additional 74,306 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.

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About Quality Systems

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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