Model N (NYSE:MODN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “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. 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 yet to report profit, which doesn't augur well for investors. Moreover, the company is facing stiff competition as evident from inconsistent revenue growth.”
A number of other research firms also recently weighed in on MODN. BidaskClub downgraded Model N from a “buy” rating to a “hold” rating in a research 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 research report on Tuesday, December 19th. Raymond James Financial reiterated a “hold” rating on shares of Model N in a research 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 research report on Tuesday, December 12th. Five research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $17.50.
Model N (MODN) traded up $0.15 during trading hours on Wednesday, hitting $15.65. The stock had a trading volume of 82,300 shares, compared to its average volume of 126,600. The company has a market cap of $459.01, a P/E ratio of -11.34 and a beta of 1.17. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.27. Model N has a 1 year low of $8.45 and a 1 year high of $16.75.
Model N (NYSE:MODN) last released its earnings results on Tuesday, November 7th. The software maker reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.03. The firm had revenue of $35.61 million during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.28) EPS. analysts expect that Model N will post -0.64 EPS for the current fiscal year.
In related news, CFO David Barter sold 3,596 shares of the company’s stock in a transaction on Tuesday, October 31st. The stock was sold at an average price of $14.65, for a total transaction of $52,681.40. Following the completion of the sale, the chief financial officer now directly owns 111,676 shares in the company, valued at approximately $1,636,053.40. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Alan S. Henricks sold 4,730 shares of the company’s stock in a transaction on Friday, November 10th. The stock was sold at an average price of $14.59, for a total value of $69,010.70. Following the sale, the director now owns 40,134 shares of the company’s stock, valued at $585,555.06. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 21,801 shares of company stock valued at $317,080. 20.40% of the stock is owned by corporate insiders.
Several hedge funds have recently made changes to their positions in the stock. GSA Capital Partners LLP lifted its position in shares of Model N by 47.9% during the 3rd quarter. GSA Capital Partners LLP now owns 74,562 shares of the software maker’s stock worth $1,115,000 after buying an additional 24,153 shares during the last quarter. California Public Employees Retirement System bought a new stake in shares of Model N during the 3rd quarter worth $354,000. Lyon Street Capital LLC lifted its position in shares of Model N by 113.4% during the 3rd quarter. Lyon Street Capital LLC now owns 576,785 shares of the software maker’s stock worth $8,623,000 after buying an additional 306,522 shares during the last quarter. Allianz Asset Management GmbH lifted its position in shares of Model N by 33.7% during the 3rd quarter. Allianz Asset Management GmbH now owns 318,322 shares of the software maker’s stock worth $4,759,000 after buying an additional 80,315 shares during the last quarter. Finally, Trigran Investments Inc. lifted its position in shares of Model N by 14.9% during the 3rd quarter. Trigran Investments Inc. now owns 984,594 shares of the software maker’s stock worth $14,720,000 after buying an additional 127,982 shares during the last quarter. Institutional investors and hedge funds own 65.77% of the company’s stock.
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Model N Company Profile
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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