Zacks Investment Research upgraded shares of Quality Systems (NASDAQ:QSII) from a sell rating to a hold rating in a report published 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.”

Several other research analysts have also recently weighed in on QSII. Royal Bank of Canada started coverage on shares of Quality Systems in a research note on Tuesday, September 19th. They set an underperform rating and a $12.00 price target on the stock. Jefferies Group restated a hold rating and set a $15.50 target price on shares of Quality Systems in a research note on Sunday, October 8th. Robert W. Baird restated a hold rating and set a $15.00 target price on shares of Quality Systems in a research note on Tuesday, October 17th. Cantor Fitzgerald restated a hold rating and set a $13.00 target price on shares of Quality Systems in a research note on Thursday, October 26th. Finally, SunTrust Banks restated a hold rating and set a $15.00 target price on shares of Quality Systems in a research note on Friday, November 17th. Four investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $14.81.

Shares of Quality Systems (NASDAQ:QSII) traded down $0.02 during trading on Tuesday, hitting $13.33. 358,500 shares of the stock traded hands, compared to its average volume of 277,533. The stock has a market cap of $859.57, a PE ratio of 31.00, a PEG ratio of 3.05 and a beta of 0.83. Quality Systems has a 1-year low of $12.61 and a 1-year high of $17.74. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.17.

Quality Systems (NASDAQ:QSII) last issued its quarterly earnings results on Thursday, October 26th. The company reported $0.22 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.16 by $0.06. The business had revenue of $132.61 million for the quarter, compared to analysts’ expectations of $130.15 million. Quality Systems had a net margin of 5.12% and a return on equity of 14.70%. The company’s revenue was up 4.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.23 EPS. equities research analysts expect that Quality Systems will post 0.57 EPS for the current fiscal year.

A number of hedge funds and other institutional investors have recently made changes to their positions in QSII. Pinebridge Investments L.P. increased its holdings in Quality Systems by 1.4% in the 2nd quarter. Pinebridge Investments L.P. now owns 6,113 shares of the company’s stock valued at $105,000 after acquiring an additional 86 shares during the last quarter. Piedmont Investment Advisors LLC bought a new stake in shares of Quality Systems in the 2nd quarter worth about $173,000. Koch Industries Inc. bought a new stake in shares of Quality Systems in the 2nd quarter worth about $189,000. Victory Capital Management Inc. bought a new stake in shares of Quality Systems in the 3rd quarter worth about $199,000. Finally, Macquarie Group Ltd. bought a new stake in shares of Quality Systems in the 3rd quarter worth about $220,000. Institutional investors 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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