HMS Holdings Corp (HMSY) Shares Down 1.7% Following Weak Earnings
HMS Holdings Corp (NASDAQ:HMSY) dropped 1.7% during mid-day trading on Monday following a dissappointing earnings announcement. The stock traded as low as $11.01 and last traded at $15.83. Approximately 995,812 shares traded hands during mid-day trading, an increase of 15% from the average daily volume of 868,451 shares. The stock had previously closed at $15.57.
The business services provider reported $0.19 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.22 by ($0.03). The company had revenue of $125.70 million during the quarter, compared to analyst estimates of $147.62 million. HMS Holdings Corp had a net margin of 4.94% and a return on equity of 7.93%. The business’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period last year, the firm earned $0.24 EPS.
HMS Holdings Corp declared that its Board of Directors has initiated a stock buyback plan on Friday, November 3rd that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the business services provider to buy shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.
HMSY has been the subject of several analyst reports. Canaccord Genuity initiated coverage on HMS Holdings Corp in a report on Tuesday, July 11th. They issued a “buy” rating and a $22.00 price objective for the company. Cantor Fitzgerald reissued a “buy” rating and issued a $23.00 price objective on shares of HMS Holdings Corp in a report on Tuesday, September 26th. Robert W. Baird reissued a “buy” rating and issued a $22.00 price objective on shares of HMS Holdings Corp in a report on Thursday, August 31st. Zacks Investment Research raised HMS Holdings Corp from a “hold” rating to a “buy” rating and set a $22.00 price objective for the company in a report on Tuesday, August 1st. Finally, BidaskClub cut HMS Holdings Corp from a “buy” rating to a “hold” rating in a report on Friday, August 4th. One analyst has rated the stock with a sell rating, three have given a hold rating, five have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $22.39.
In related news, Chairman William C. Lucia sold 29,894 shares of the company’s stock in a transaction dated Wednesday, September 27th. The stock was sold at an average price of $20.00, for a total value of $597,880.00. Following the completion of the transaction, the chairman now owns 222,745 shares of the company’s stock, valued at approximately $4,454,900. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Cynthia Nustad sold 22,907 shares of the company’s stock in a transaction dated Thursday, August 31st. The stock was sold at an average price of $17.64, for a total value of $404,079.48. Following the completion of the transaction, the executive vice president now directly owns 73,877 shares of the company’s stock, valued at approximately $1,303,190.28. The disclosure for this sale can be found here. Insiders sold a total of 73,535 shares of company stock valued at $1,368,537 in the last ninety days. 3.20% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Riverhead Capital Management LLC raised its holdings in HMS Holdings Corp by 80.4% in the 2nd quarter. Riverhead Capital Management LLC now owns 5,592 shares of the business services provider’s stock worth $104,000 after purchasing an additional 2,492 shares during the period. Pitcairn Co. purchased a new stake in HMS Holdings Corp during the 3rd quarter worth approximately $203,000. Fox Run Management L.L.C. purchased a new stake in HMS Holdings Corp during the 2nd quarter worth approximately $198,000. Oppenheimer & Co. Inc. increased its stake in HMS Holdings Corp by 1.9% during the 2nd quarter. Oppenheimer & Co. Inc. now owns 10,867 shares of the business services provider’s stock worth $201,000 after buying an additional 200 shares in the last quarter. Finally, Amalgamated Bank increased its stake in HMS Holdings Corp by 3.8% during the 2nd quarter. Amalgamated Bank now owns 11,574 shares of the business services provider’s stock worth $214,000 after buying an additional 419 shares in the last quarter. 93.54% of the stock is owned by institutional investors.
The firm has a market cap of $1,320.00, a P/E ratio of 29.94, a P/E/G ratio of 1.95 and a beta of 0.94.
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About HMS Holdings Corp
HMS Holdings Corp. is a holding company. The Company, through its subsidiaries, operates in the United States healthcare insurance benefit cost containment marketplace. It provides coordination of benefits services to government, and private healthcare payers and sponsors. Its payment integrity services ensure that healthcare claims billed are accurate and appropriate.
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