HMS (HMSY) Hits New 1-Year High Following Earnings Beat

HMS Holdings Corp (NASDAQ:HMSY)’s share price hit a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $35.03 and last traded at $34.58, with a volume of 99799 shares traded. The stock had previously closed at $29.48.

The business services provider reported $0.31 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.21 by $0.10. The company had revenue of $154.20 million during the quarter, compared to analyst estimates of $140.93 million. HMS had a return on equity of 5.47% and a net margin of 6.25%. The business’s revenue was up 22.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.19 earnings per share.

Several equities analysts have recently commented on HMSY shares. Robert W. Baird reaffirmed a “buy” rating and set a $30.00 target price on shares of HMS in a report on Friday, August 3rd. ValuEngine raised HMS from a “buy” rating to a “strong-buy” rating in a report on Monday, August 13th. Zacks Investment Research lowered HMS from a “strong-buy” rating to a “hold” rating in a report on Friday, October 5th. Chardan Capital started coverage on HMS in a report on Thursday, September 13th. They issued a “neutral” rating and a $35.00 price objective for the company. Finally, Jefferies Financial Group set a $28.00 price objective on HMS and gave the stock a “hold” rating in a report on Sunday, August 5th. Four analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $30.90.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. boosted its stake in HMS by 7.0% during the 2nd quarter. BlackRock Inc. now owns 11,583,749 shares of the business services provider’s stock valued at $250,443,000 after purchasing an additional 759,265 shares in the last quarter. American Capital Management Inc. boosted its stake in HMS by 0.8% during the 2nd quarter. American Capital Management Inc. now owns 2,389,449 shares of the business services provider’s stock valued at $51,660,000 after purchasing an additional 17,895 shares in the last quarter. Northern Trust Corp boosted its stake in HMS by 1.4% during the 2nd quarter. Northern Trust Corp now owns 1,133,001 shares of the business services provider’s stock valued at $24,495,000 after purchasing an additional 15,596 shares in the last quarter. Standard Life Aberdeen plc boosted its stake in HMS by 34.2% during the 2nd quarter. Standard Life Aberdeen plc now owns 1,060,125 shares of the business services provider’s stock valued at $22,915,000 after purchasing an additional 269,878 shares in the last quarter. Finally, Principal Financial Group Inc. boosted its stake in HMS by 3.7% during the 1st quarter. Principal Financial Group Inc. now owns 689,482 shares of the business services provider’s stock valued at $11,611,000 after purchasing an additional 24,762 shares in the last quarter. 96.05% of the stock is owned by hedge funds and other institutional investors.

The company has a market cap of $2.85 billion, a PE ratio of 79.28, a price-to-earnings-growth ratio of 4.08 and a beta of 1.32. The company has a quick ratio of 3.87, a current ratio of 3.87 and a debt-to-equity ratio of 0.39.

About HMS (NASDAQ:HMSY)

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. It provides coordination of benefits services to government and commercial healthcare payers and sponsors to coordinate benefits for claims; and payment integrity services that ensure healthcare claims billed are accurate and appropriate, as well as offers care management and consumer engagement solutions.

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