Model N, Inc. (MODN) Rating Increased to Buy at Zacks Investment Research
Model N, Inc. (NYSE:MODN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Monday. The brokerage presently has a $16.00 price target on the software maker’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 10.73% from the stock’s previous close.
According to Zacks, “Model N reported better-than-expected fourth-quarter fiscal 2017 results. Revenues increased on a year-over-year basis driven by the successful integration of Revitas. 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. We note that the stock has outperformed the industry on a year-to-date basis. However, the company is yet to report profit, which doesn't augur well for investors.”
Several other analysts have also recently issued reports on the company. BidaskClub upgraded Model N from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 30th. ValuEngine upgraded Model N from a “sell” rating to a “hold” rating in a report on Friday, September 1st. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $14.00.
Model N (MODN) remained flat at $$14.45 during trading hours on Monday. The stock had a trading volume of 99,000 shares, compared to its average volume of 131,587. Model N has a 1-year low of $7.90 and a 1-year high of $15.05. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.23 and a quick ratio of 1.23.
Model N (NYSE:MODN) last posted its quarterly earnings data on Tuesday, November 7th. The software maker reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.03. The company had revenue of $35.61 million during the quarter, compared to analyst estimates of $34.86 million. Model N had a negative net margin of 30.15% and a negative return on equity of 52.28%. Model N’s quarterly revenue was up 24.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.28) earnings per share. research analysts anticipate that Model N will post -0.64 earnings per share for the current fiscal year.
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In other Model N news, CFO David Barter sold 3,596 shares of the stock in a transaction that occurred on Tuesday, October 31st. The shares were sold at an average price of $14.65, for a total transaction of $52,681.40. Following the transaction, the chief financial officer now owns 111,676 shares in the company, valued at approximately $1,636,053.40. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Amelia Generalis sold 6,298 shares of the stock in a transaction that occurred on Tuesday, September 5th. The stock was sold at an average price of $13.35, for a total transaction of $84,078.30. Following the sale, the senior vice president now owns 70,436 shares in the company, valued at approximately $940,320.60. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 28,099 shares of company stock valued at $401,158. 20.40% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in MODN. SQN Investors LP raised its holdings in Model N by 28.8% in the second 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 in the last quarter. Trigran Investments Inc. raised 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 purchasing an additional 127,982 shares during the period. Vanguard Group Inc. boosted its stake in shares of Model N by 3.0% during the 2nd quarter. Vanguard Group Inc. now owns 963,235 shares of the software maker’s stock worth $12,811,000 after acquiring an additional 28,369 shares in the last quarter. Redmile Group LLC lifted its holdings in shares of Model N by 4.4% in the second quarter. Redmile Group LLC now owns 858,314 shares of the software maker’s stock valued at $11,416,000 after purchasing an additional 36,000 shares in the last quarter. Finally, Emerald Advisers Inc. PA increased its position in Model N by 5.7% during the second quarter. Emerald Advisers Inc. PA now owns 789,070 shares of the software maker’s stock worth $10,495,000 after buying an additional 42,890 shares during the last quarter. 65.74% of the stock is currently owned by hedge funds and other institutional investors.
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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