Model N (MODN) Upgraded at Zacks Investment Research

Zacks Investment Research upgraded shares of Model N (NYSE:MODN) from a hold rating to a buy rating in a research note released on Monday morning. The firm currently has $20.00 target price on the software maker’s stock.

According to Zacks, “Model N reported narrower loss in second-quarter. Moreover, revenues grew year-over-year on rapid adoption of company’s Revenue Cloud offering for med-tech, pharma, semiconductor, manufacturing and high tech companies. The integration of Revitas acquisition is positive for the company as it not only reduced competition in the life sciences vertical but also bolstered its customer base. Management remains optimistic about the steady progress in the company’s transformation to a 100% Software-as-a-Service (SaaS) based model as it will drive recurring revenue growth in the long term. Notably, Model N has outperformed the industry in the past year. However, stiff competition from peers is a headwind. Also, higher operating losses and lack of big shot international customers is expected to hurt company’s growth initiatives.”

A number of other equities research analysts have also recently commented on MODN. ValuEngine upgraded shares of Model N from a sell rating to a hold rating in a report on Friday, February 2nd. JMP Securities upgraded shares of Model N from a market perform rating to an outperform rating in a report on Wednesday, February 7th. Finally, JPMorgan Chase set a $20.00 target price on shares of Model N and gave the stock a hold rating in a report on Wednesday, March 14th. They noted that the move was a valuation call. Three investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus price target of $19.00.

NYSE:MODN opened at $17.95 on Monday. Model N has a 52 week low of $17.55 and a 52 week high of $17.75. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 1.24.

Model N (NYSE:MODN) last posted its quarterly earnings results on Tuesday, May 8th. The software maker reported $0.02 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.04) by $0.06. Model N had a negative net margin of 19.31% and a negative return on equity of 41.62%. The firm had revenue of $39.20 million for the quarter, compared to analysts’ expectations of $38.32 million. During the same quarter in the prior year, the company posted ($0.25) earnings per share. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. equities analysts expect that Model N will post -0.56 earnings per share for the current year.

In other news, CFO David Barter sold 7,249 shares of the firm’s stock in a transaction on Wednesday, May 16th. The shares were sold at an average price of $17.66, for a total transaction of $128,017.34. Following the sale, the chief financial officer now directly owns 132,832 shares in the company, valued at approximately $2,345,813.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Mark Albert Anderson sold 1,928 shares of the firm’s stock in a transaction on Wednesday, May 16th. The shares were sold at an average price of $17.66, for a total transaction of $34,048.48. Following the sale, the senior vice president now owns 115,039 shares in the company, valued at $2,031,588.74. The disclosure for this sale can be found here. Insiders sold 19,330 shares of company stock worth $331,113 over the last quarter. Insiders own 18.90% of the company’s stock.

Hedge funds have recently made changes to their positions in the company. Barclays PLC raised its position in shares of Model N by 153.5% during the 1st quarter. Barclays PLC now owns 9,550 shares of the software maker’s stock valued at $171,000 after purchasing an additional 5,783 shares during the period. PVG Asset Management Corp bought a new stake in shares of Model N during the 1st quarter valued at $191,000. MetLife Investment Advisors LLC bought a new stake in shares of Model N during the 4th quarter valued at $182,000. Advisor Group Inc. raised its position in shares of Model N by 24,927.1% during the 4th quarter. Advisor Group Inc. now owns 14,766 shares of the software maker’s stock valued at $233,000 after purchasing an additional 14,707 shares during the period. Finally, Citigroup Inc. raised its position in shares of Model N by 286.3% during the 1st quarter. Citigroup Inc. now owns 16,508 shares of the software maker’s stock valued at $297,000 after purchasing an additional 12,235 shares during the period. Hedge funds and other institutional investors own 62.16% of the company’s stock.

Model N Company Profile

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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