Zacks Investment Research lowered shares of Omnicell, Inc. (NASDAQ:OMCL) from a hold rating to a strong sell rating in a report issued on Wednesday, November 1st.
According to Zacks, “Omnicell exited third-quarter 2017 on a mixed note with earnings beating the Zacks Consensus Estimate and revenues missing the same. Also, weak margin scenario is a matter of concern. The company’s lowering of the high end of the full-year 2017 adjusted revenue guidanceis indicative of this overall dull scenario to remain. A tough competitive landscape also acts as a dampener. Over the last three months, Omnicell’s shares have been trading below the broader industry.However, on a positive note, the year-over-year increase in earnings and revenues was impressive. The company witnessed balanced growth across all its business lines in the quarter. We are encouraged to note that the company is working on product innovation through R&D. Over the recent past, Omnicell has been observed to gain consistently from series of product launches (the latest being XT Series Automated Supply Dispensing system) and strategic partnerships.”
OMCL has been the subject of several other research reports. Cantor Fitzgerald raised their target price on Omnicell to $58.00 and gave the stock an overweight rating in a research note on Friday, October 27th. Benchmark Co. lifted their price objective on Omnicell from $55.00 to $67.00 and gave the company a buy rating in a research note on Tuesday, September 5th. Oppenheimer Holdings, Inc. reaffirmed a buy rating and issued a $55.00 price objective on shares of Omnicell in a research note on Thursday, October 19th. Piper Jaffray Companies reiterated a hold rating and issued a $40.00 target price on shares of Omnicell in a report on Sunday, July 30th. Finally, Craig Hallum reiterated a buy rating and issued a $62.00 target price (up from $52.00) on shares of Omnicell in a report on Monday, October 30th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and seven have given a buy rating to the company’s stock. The company has an average rating of Buy and an average target price of $54.86.
Omnicell (NASDAQ:OMCL) last posted its earnings results on Thursday, October 26th. The company reported $0.42 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.42. The company had revenue of $186.78 million during the quarter, compared to analysts’ expectations of $192.45 million. Omnicell had a negative return on equity of 0.79% and a negative net margin of 0.51%. The firm’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.40 earnings per share. research analysts predict that Omnicell will post 0.12 EPS for the current fiscal year.
In other news, VP Peter J. Kuipers sold 4,724 shares of the business’s stock in a transaction dated Friday, November 17th. The stock was sold at an average price of $47.74, for a total value of $225,523.76. Following the completion of the sale, the vice president now directly owns 40,544 shares of the company’s stock, valued at approximately $1,935,570.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gary S. Petersmeyer sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 5th. The shares were sold at an average price of $51.73, for a total value of $51,730.00. The disclosure for this sale can be found here. Insiders sold a total of 50,569 shares of company stock valued at $2,493,822 over the last three months. Company insiders own 3.77% of the company’s stock.
A number of hedge funds have recently modified their holdings of the stock. Marco Investment Management LLC acquired a new position in Omnicell in the 3rd quarter valued at about $231,000. California Public Employees Retirement System increased its position in Omnicell by 6.2% during the 3rd quarter. California Public Employees Retirement System now owns 86,240 shares of the company’s stock worth $4,403,000 after purchasing an additional 5,040 shares during the period. Janney Capital Management LLC increased its position in Omnicell by 45.3% during the 3rd quarter. Janney Capital Management LLC now owns 9,484 shares of the company’s stock worth $484,000 after purchasing an additional 2,957 shares during the period. Synovus Financial Corp increased its position in Omnicell by 8.4% during the 3rd quarter. Synovus Financial Corp now owns 21,009 shares of the company’s stock worth $1,079,000 after purchasing an additional 1,623 shares during the period. Finally, Pier Capital LLC acquired a new position in Omnicell during the 3rd quarter worth approximately $5,488,000. Hedge funds and other institutional investors own 97.93% of the company’s stock.
Omnicell Company Profile
Omnicell, Inc provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence.
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