Maximus (MMS) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Maximus (NYSE:MMS) from a buy rating to a hold rating in a research note published on Wednesday morning.

According to Zacks, “MAXIMUS, Inc. is an extremely dynamic and complex organization that offers government and industry a range of unique services, products, and solutions. The diverse services and products that MAXIMUS offers may be categorized into three groups: Government Program Management and Operations, Consulting, and Systems. Government Program Management and Operations focuses on having a measurable impact on the lives of the citizens we help government serve. The insights of MAXIMUS Consulting, and the technological innovations advanced through Systems, help government gain program efficiencies and pursue improvements that in turn benefit citizens. “

Other research analysts have also recently issued reports about the company. Maxim Group reissued a hold rating and set a $69.00 target price (up from $66.00) on shares of Maximus in a research note on Thursday, February 8th. First Analysis raised Maximus from an equal rating to a weight rating and boosted their target price for the stock from $73.00 to $81.00 in a research note on Tuesday, May 8th. Finally, Canaccord Genuity lowered their target price on Maximus from $71.00 to $65.00 and set a hold rating for the company in a research note on Friday, February 9th. One analyst has rated the stock with a sell rating and four have assigned a hold rating to the company. The company has a consensus rating of Hold and a consensus price target of $71.00.

MMS stock opened at $62.24 on Wednesday. The firm has a market capitalization of $4.06 billion, a P/E ratio of 19.45, a PEG ratio of 2.40 and a beta of 1.13. Maximus has a 12-month low of $58.58 and a 12-month high of $72.71.

Maximus (NYSE:MMS) last posted its quarterly earnings data on Thursday, May 10th. The health services provider reported $0.82 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.84 by ($0.02). Maximus had a net margin of 9.15% and a return on equity of 21.67%. The firm had revenue of $612.79 million during the quarter, compared to analysts’ expectations of $617.97 million. During the same quarter in the prior year, the firm posted $0.80 EPS. Maximus’s quarterly revenue was down 1.5% compared to the same quarter last year. research analysts forecast that Maximus will post 3.24 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 31st. Investors of record on Tuesday, May 15th will be paid a dividend of $0.045 per share. The ex-dividend date of this dividend is Monday, May 14th. This represents a $0.18 annualized dividend and a yield of 0.29%. Maximus’s payout ratio is 5.94%.

In related news, CEO Richard A. Montoni sold 30,000 shares of the business’s stock in a transaction on Thursday, February 22nd. The stock was sold at an average price of $67.89, for a total transaction of $2,036,700.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Russell A. Beliveau sold 1,000 shares of the business’s stock in a transaction on Monday, April 2nd. The stock was sold at an average price of $66.55, for a total value of $66,550.00. The disclosure for this sale can be found here. Insiders have sold a total of 41,000 shares of company stock valued at $2,777,450 over the last three months. 3.10% of the stock is currently owned by insiders.

Large investors have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. boosted its position in shares of Maximus by 411.7% during the 1st quarter. Meeder Asset Management Inc. now owns 1,612 shares of the health services provider’s stock worth $108,000 after acquiring an additional 1,297 shares in the last quarter. Ostrum Asset Management acquired a new position in shares of Maximus during the 1st quarter worth about $109,000. We Are One Seven LLC boosted its position in shares of Maximus by 241.3% during the 1st quarter. We Are One Seven LLC now owns 2,017 shares of the health services provider’s stock worth $135,000 after acquiring an additional 1,426 shares in the last quarter. Amundi Pioneer Asset Management Inc. acquired a new position in shares of Maximus during the 4th quarter worth about $163,000. Finally, Steward Partners Investment Advisory LLC acquired a new position in shares of Maximus during the 4th quarter worth about $169,000. 97.11% of the stock is owned by institutional investors and hedge funds.

About Maximus

MAXIMUS, Inc provides business process services (BPS) to government health and human services programs in the United States, the United Kingdom, Australia, Canada, Singapore, and Saudi Arabia. The company's Health Services segment offers various BPS, appeals, and assessments, as well as related consulting services for state, provincial, and national government programs comprising Medicaid, Children's Health Insurance Program, the Affordable Care Act, Health Insurance British Columbia, the Health Assessment Advisory Service, and Preadmission Screening and Resident Reviews.

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