Model N, Inc. (MODN) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Model N, Inc. (NYSE:MODN) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning.

According to Zacks, “Model N is a leading provider of revenue management solutions primarily to life sciences and high technology companies. The company continues to win deals in these segments that will drive top-line growth. Moreover, the transition to cloud-based applications will drive recurring revenue growth in the long term. Notably, estimates have been stable ahead of the company's fourth-quarter results. The company has positive record of earnings surprises in the recent quarters. We note that the company has outperformed the industry on a year-to-date basis. However, lack of international customers, mounting operating loss, continuing cash burn and stretched valuation are major headwinds.”

A number of other analysts have also issued reports on the stock. Dougherty & Co started coverage on shares of Model N in a research report on Thursday, June 29th. They set a buy rating and a $17.00 target price on the stock. BidaskClub upgraded shares of Model N from a buy rating to a strong-buy rating in a research report on Thursday, August 17th. Finally, ValuEngine upgraded shares of Model N from a sell rating to a hold rating in a research report on Friday, September 1st. Four research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Model N presently has a consensus rating of Buy and a consensus target price of $13.67.

Shares of Model N (NYSE:MODN) remained flat at $14.55 on Tuesday. The company had a trading volume of 13,398 shares. The stock’s 50 day moving average price is $13.96 and its 200 day moving average price is $12.70. Model N has a 1-year low of $6.97 and a 1-year high of $15.05. The stock’s market cap is $423.30 million.

Model N (NYSE:MODN) last announced its earnings results on Tuesday, August 8th. The software maker reported ($0.23) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.27) by $0.04. Model N had a negative net margin of 30.85% and a negative return on equity of 52.59%. The firm had revenue of $34.20 million for the quarter, compared to analyst estimates of $34.41 million. During the same quarter last year, the business earned ($0.16) earnings per share. Model N’s revenue was up 22.6% compared to the same quarter last year. Equities research analysts expect that Model N will post ($0.62) EPS for the current fiscal year.

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In other news, SVP Amelia Generalis sold 3,758 shares of the firm’s stock in a transaction on Tuesday, August 15th. The shares were sold at an average price of $13.30, for a total value of $49,981.40. Following the transaction, the senior vice president now owns 76,734 shares of the company’s stock, valued at approximately $1,020,562.20. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 20.40% of the company’s stock.

Hedge funds have recently modified their holdings of the company. Prescott Group Capital Management L.L.C. purchased a new position in shares of Model N in the 2nd quarter valued at $140,000. Prudential Financial Inc. purchased a new position in shares of Model N in the 2nd quarter valued at $141,000. American International Group Inc. raised its stake in shares of Model N by 7.1% in the 1st quarter. American International Group Inc. now owns 13,678 shares of the software maker’s stock valued at $143,000 after acquiring an additional 904 shares during the period. Voya Investment Management LLC raised its stake in shares of Model N by 14.7% in the 2nd quarter. Voya Investment Management LLC now owns 14,963 shares of the software maker’s stock valued at $199,000 after acquiring an additional 1,915 shares during the period. Finally, Goldman Sachs Group Inc. purchased a new position in shares of Model N in the 2nd quarter valued at $221,000. 65.87% of the stock is currently owned by institutional investors and hedge funds.

About Model N

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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