Quality Systems (QSII) Upgraded to Hold at Zacks Investment Research

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

A number of other equities research analysts have also weighed in on QSII. Citigroup began coverage on Quality Systems in a research report on Thursday, January 4th. They issued a sell rating and a $13.00 price objective on the stock. Jefferies Group restated a hold rating and set a $15.50 price target on shares of Quality Systems in a research report on Sunday, October 8th. Robert W. Baird restated a hold rating and set a $15.00 price target on shares of Quality Systems in a research report on Tuesday, October 17th. BidaskClub lowered Quality Systems from a sell rating to a strong sell rating in a research report on Saturday, December 30th. Finally, SunTrust Banks restated a hold rating and set a $15.00 price target on shares of Quality Systems in a research report on Friday, November 17th. Four analysts have rated the stock with a sell rating, seven have issued a hold rating and one has assigned a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $14.81.

Shares of Quality Systems (QSII) traded down $0.13 during mid-day trading on Tuesday, hitting $13.35. The stock had a trading volume of 248,527 shares, compared to its average volume of 270,173. The company has a market cap of $880.58, a price-to-earnings ratio of 31.05, a P/E/G ratio of 3.16 and a beta of 0.83. Quality Systems has a 12-month low of $12.61 and a 12-month high of $17.74. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.17.

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

Hedge funds have recently bought and sold shares of the company. Pinebridge Investments L.P. raised its stake in shares of Quality Systems by 1.4% in the second quarter. Pinebridge Investments L.P. now owns 6,113 shares of the company’s stock worth $105,000 after purchasing an additional 86 shares during the last quarter. Piedmont Investment Advisors LLC purchased a new position in shares of Quality Systems in the second quarter worth $173,000. Victory Capital Management Inc. purchased a new position in shares of Quality Systems in the third quarter worth $199,000. Macquarie Group Ltd. purchased a new position in shares of Quality Systems in the third quarter worth $220,000. Finally, Municipal Employees Retirement System of Michigan raised its stake in shares of Quality Systems by 59.7% in the third quarter. Municipal Employees Retirement System of Michigan now owns 17,410 shares of the company’s stock worth $274,000 after purchasing an additional 6,510 shares during the last quarter. Hedge funds and other 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.

Analyst Recommendations for Quality Systems (NASDAQ:QSII)

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