Allscripts Healthcare Solutions (NASDAQ:MDRX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.

According to Zacks, “Allscripts ended the third quarter on a tepid note, missing the Zacks Consensus Estimate for both counts. Allscripts' margins are under pressure due to decline in non-recurring software license revenues. Year-over-year decline in bookings is a concern. In fact, management expects to some volatility in bookings in the quarters ahead. The company also witnessed significant contraction in margins. The company is exposed to integration risks. Intense competition in the MedTech space adds to woes. The stock underperformed the industry in a year. On the brighter side, Allscripts continues to gain from the core software, delivery, support and maintenance units, which projected solid growth. The company’s growth in revenue cycle services and acquisition of McKesson’s EIS business have lent it a competitive edge. The recently-closed acquisition of HealthGrid is likely to boost the company’s FollowMyHealth patient engagement platform.”

A number of other research analysts have also weighed in on the company. Cantor Fitzgerald reissued a “buy” rating and set a $17.00 price target on shares of Allscripts Healthcare Solutions in a research note on Thursday, August 2nd. JPMorgan Chase & Co. lowered Allscripts Healthcare Solutions from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $16.00 to $12.00 in a research report on Friday, November 2nd. TheStreet raised Allscripts Healthcare Solutions from a “c+” rating to a “b-” rating in a research report on Thursday, September 6th. ValuEngine lowered Allscripts Healthcare Solutions from a “hold” rating to a “sell” rating in a research report on Friday, November 2nd. Finally, SunTrust Banks lowered Allscripts Healthcare Solutions from a “buy” rating to a “hold” rating in a research report on Friday, November 2nd. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating and eight have issued a buy rating to the company. Allscripts Healthcare Solutions has a consensus rating of “Hold” and a consensus price target of $15.51.

Shares of Allscripts Healthcare Solutions stock traded up $0.12 during trading hours on Wednesday, reaching $9.60. 16,945 shares of the company’s stock were exchanged, compared to its average volume of 2,982,183. Allscripts Healthcare Solutions has a 52-week low of $9.41 and a 52-week high of $16.13. The firm has a market cap of $1.68 billion, a PE ratio of 20.43, a P/E/G ratio of 1.35 and a beta of 1.34. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.61.

Allscripts Healthcare Solutions (NASDAQ:MDRX) last issued its quarterly earnings results on Thursday, November 1st. The software maker reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.01). Allscripts Healthcare Solutions had a positive return on equity of 8.25% and a negative net margin of 0.25%. The business had revenue of $536.00 million for the quarter, compared to analysts’ expectations of $546.09 million. During the same period in the prior year, the company earned $0.15 EPS. The company’s revenue for the quarter was up 18.8% compared to the same quarter last year. Equities research analysts anticipate that Allscripts Healthcare Solutions will post 0.54 EPS for the current year.

Allscripts Healthcare Solutions declared that its Board of Directors has authorized a stock repurchase program on Thursday, August 2nd that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the software maker to purchase up to 11.3% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

In related news, EVP Brian Farley sold 6,000 shares of the stock in a transaction on Friday, September 14th. The stock was sold at an average price of $14.67, for a total value of $88,020.00. Following the transaction, the executive vice president now directly owns 242,673 shares of the company’s stock, valued at approximately $3,560,012.91. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.10% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in MDRX. Guggenheim Capital LLC increased its holdings in Allscripts Healthcare Solutions by 11.0% in the 1st quarter. Guggenheim Capital LLC now owns 69,606 shares of the software maker’s stock valued at $860,000 after purchasing an additional 6,902 shares in the last quarter. Principal Financial Group Inc. increased its holdings in Allscripts Healthcare Solutions by 2.7% in the 1st quarter. Principal Financial Group Inc. now owns 1,029,996 shares of the software maker’s stock valued at $12,720,000 after purchasing an additional 26,865 shares in the last quarter. Fox Run Management L.L.C. acquired a new stake in Allscripts Healthcare Solutions in the 2nd quarter valued at $204,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in Allscripts Healthcare Solutions in the 2nd quarter valued at $229,000. Finally, Community Trust & Investment Co. increased its holdings in Allscripts Healthcare Solutions by 33.7% in the 2nd quarter. Community Trust & Investment Co. now owns 830,332 shares of the software maker’s stock valued at $9,964,000 after purchasing an additional 209,164 shares in the last quarter.

Allscripts Healthcare Solutions Company Profile

Allscripts Healthcare Solutions, Inc provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. It offers electronic health records, connectivity, private cloud hosting, outsourcing, analytics, patient engagement, clinical decision support, and population health management solutions.

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