Zacks Investment Research upgraded shares of Model N (NYSE:MODN) from a hold rating to a buy rating in a report released on Monday, March 12th. They currently have $21.00 target price on the software maker’s stock.
According to Zacks, “Model N reported stellar first-quarter results, where in both revenues and earnings increased year over year. 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. Model N has outperformed the industry in the last one year. 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 facing stiff competition from peers which remains a major headwind.”
Other analysts also recently issued reports about the stock. ValuEngine raised shares of Model N from a sell rating to a hold rating in a research report on Friday, February 2nd. JMP Securities raised shares of Model N from a market perform rating to an outperform rating in a research report on Wednesday, February 7th. JPMorgan Chase downgraded shares of 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. Dougherty & Co boosted their target price on shares of Model N from $17.00 to $20.00 and gave the stock a buy rating in a research report on Tuesday, December 19th. Finally, Raymond James Financial reissued a hold rating on shares of Model N in a research report on Monday, December 4th. Three analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Model N currently has a consensus rating of Buy and an average price target of $19.25.
Model N (NYSE:MODN) last announced its quarterly earnings data on Tuesday, February 6th. The software maker reported $0.03 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.06) by $0.09. The firm had revenue of $39.10 million for the quarter, compared to the consensus estimate of $37.14 million. Model N had a negative net margin of 26.17% and a negative return on equity of 55.03%. The firm’s revenue was up 39.1% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.15) earnings per share. equities analysts forecast that Model N will post -0.57 earnings per share for the current fiscal year.
In related news, SVP Neeraj Gokhale sold 1,628 shares of the company’s stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $16.94, for a total transaction of $27,578.32. Following the completion of the sale, the senior vice president now directly owns 81,389 shares of the company’s stock, valued at approximately $1,378,729.66. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Mark Albert Anderson sold 10,153 shares of the company’s stock in a transaction on Friday, February 23rd. The stock was sold at an average price of $16.65, for a total transaction of $169,047.45. The disclosure for this sale can be found here. 18.90% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Trexquant Investment LP acquired a new position in Model N during the 3rd quarter valued at $154,000. MetLife Investment Advisors LLC acquired a new position in Model N during the 4th quarter valued at $182,000. Voya Investment Management LLC raised its stake in Model N by 14.7% during the 2nd quarter. Voya Investment Management LLC now owns 14,963 shares of the software maker’s stock valued at $199,000 after purchasing an additional 1,915 shares during the last quarter. Goldman Sachs Group Inc. acquired a new position in Model N during the 2nd quarter valued at $221,000. Finally, Alliancebernstein L.P. acquired a new position in Model N during the 2nd quarter valued at $222,000. 62.71% of the stock is owned by institutional investors and hedge funds.
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About Model N
Model N, Inc provides revenue management cloud solutions for the life sciences, technology, and manufacturing companies. The company's cloud-based revenue management solutions include Revenue Cloud for Pharma, Revenue Cloud for Med Tech, Revenue Cloud for High Tech, and Revenue Cloud. It develops software applications, such as managed care and government pricing for life science companies; and channel incentives for technology companies.
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