Zacks Investment Research cut shares of Medidata Solutions (NASDAQ:MDSO) from a hold rating to a sell rating in a research note released on Tuesday morning.
According to Zacks, “Medidata’s declining gross and operating margins raise concern. A string of acquisitions raises significant consolidation risks. The company’s overdependence on third parties may also be a concern over the long haul. Medidata’s cloud-based platform may also lead to complexities, giving rise to high correctional costs. The stock looks overvalued. Stiff competition in the niche space adds to the woes. On the positive side, Medidata outperformed the industry year to date. Medidata’s strong subscription revenues are a positive. Focus on cloud-based services is worth a mention. In fact, the company’s Medidata Cloud has seen developments in recent times. The company is currently banking on the recently acquired SHYFT. The recent collaboration with Novartis is likely to support the commercialization of key therapies in Europe. Furthermore, the company’s flagship RAVE genomics platform is currently much in demand.”
MDSO has been the topic of several other reports. Royal Bank of Canada lowered their price target on Medidata Solutions to $91.00 and set an outperform rating on the stock in a research note on Tuesday, September 25th. JPMorgan Chase & Co. lowered Medidata Solutions from an overweight rating to a neutral rating and set a $87.00 price target on the stock. in a research note on Tuesday, July 24th. ValuEngine lowered Medidata Solutions from a buy rating to a hold rating in a research note on Tuesday, July 24th. Morgan Stanley set a $84.00 price objective on Medidata Solutions and gave the company a hold rating in a research note on Wednesday, July 25th. Finally, BidaskClub lowered Medidata Solutions from a strong-buy rating to a buy rating in a research note on Tuesday, June 26th. One research analyst has rated the stock with a sell rating, five have given a hold rating and eight have assigned a buy rating to the company. The stock currently has an average rating of Buy and a consensus price target of $86.33.
MDSO traded up $0.25 on Tuesday, hitting $71.07. 30,566 shares of the stock traded hands, compared to its average volume of 766,541. Medidata Solutions has a 52 week low of $59.60 and a 52 week high of $88.87. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $4.13 billion, a price-to-earnings ratio of 83.52, a P/E/G ratio of 4.35 and a beta of 1.44.
Medidata Solutions (NASDAQ:MDSO) last issued its quarterly earnings results on Thursday, October 18th. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.06. Medidata Solutions had a return on equity of 11.37% and a net margin of 9.13%. The firm had revenue of $163.41 million for the quarter, compared to analyst estimates of $162.09 million. During the same period in the previous year, the company posted $0.33 earnings per share. The company’s quarterly revenue was up 17.6% compared to the same quarter last year. Equities research analysts expect that Medidata Solutions will post 0.79 EPS for the current year.
In related news, Director Lee Shapiro sold 12,500 shares of the stock in a transaction that occurred on Thursday, July 26th. The stock was sold at an average price of $76.16, for a total transaction of $952,000.00. Following the sale, the director now directly owns 26,028 shares in the company, valued at approximately $1,982,292.48. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Robert Taylor sold 5,000 shares of the stock in a transaction that occurred on Tuesday, July 31st. The stock was sold at an average price of $73.05, for a total value of $365,250.00. Following the sale, the director now owns 44,036 shares in the company, valued at $3,216,829.80. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,788 shares of company stock worth $2,069,857. Corporate insiders own 4.70% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. World Asset Management Inc bought a new stake in Medidata Solutions during the 2nd quarter worth approximately $235,000. Zeke Capital Advisors LLC bought a new stake in Medidata Solutions during the 2nd quarter worth approximately $239,000. First Republic Investment Management Inc. bought a new stake in Medidata Solutions during the 2nd quarter worth approximately $242,000. Asset Management One Co. Ltd. grew its position in Medidata Solutions by 102.7% during the 1st quarter. Asset Management One Co. Ltd. now owns 3,948 shares of the company’s stock worth $248,000 after acquiring an additional 2,000 shares during the last quarter. Finally, Zions Bancorporation bought a new stake in Medidata Solutions during the 2nd quarter worth approximately $274,000.
About Medidata Solutions
Medidata Solutions, Inc provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development of new therapies. The company's platform solutions include data capture and management and trial planning and management.
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