Inovalon (INOV) Trading Down 12.6% on Disappointing Earnings

Inovalon Holdings Inc (NASDAQ:INOV) dropped 12.6% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $13.17 and last traded at $13.47. Approximately 2,503,364 shares were traded during mid-day trading, an increase of 354% from the average daily volume of 551,922 shares. The stock had previously closed at $15.42.

The technology company reported $0.05 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.07 by ($0.02). The business had revenue of $136.30 million during the quarter, compared to analyst estimates of $145.20 million. Inovalon had a negative net margin of 7.32% and a positive return on equity of 3.89%. The company’s revenue was up 18.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.06 earnings per share.

INOV has been the subject of several analyst reports. Morgan Stanley upgraded Inovalon from an “underweight” rating to an “equal weight” rating and boosted their price target for the company from $10.00 to $13.00 in a report on Thursday, December 20th. Wells Fargo & Co cut their price target on Inovalon from $14.00 to $11.00 and set a “market perform” rating for the company in a report on Thursday, November 8th. BidaskClub cut shares of Inovalon from a “buy” rating to a “hold” rating in a research note on Thursday, November 1st. Zacks Investment Research cut shares of Inovalon from a “buy” rating to a “hold” rating in a research note on Wednesday, January 9th. Finally, SunTrust Banks started coverage on shares of Inovalon in a research note on Friday, February 15th. They set a “buy” rating and a $22.00 price objective for the company. Three investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $15.50.

Several hedge funds and other institutional investors have recently made changes to their positions in INOV. California Public Employees Retirement System grew its stake in shares of Inovalon by 93.0% during the 2nd quarter. California Public Employees Retirement System now owns 19,489 shares of the technology company’s stock valued at $193,000 after buying an additional 9,389 shares during the period. Northern Trust Corp grew its stake in shares of Inovalon by 7.9% during the 2nd quarter. Northern Trust Corp now owns 913,675 shares of the technology company’s stock valued at $9,068,000 after buying an additional 67,056 shares during the period. Oppenheimer Asset Management Inc. purchased a new stake in shares of Inovalon during the 3rd quarter valued at $108,000. Swiss National Bank grew its stake in shares of Inovalon by 8.2% during the 3rd quarter. Swiss National Bank now owns 118,700 shares of the technology company’s stock valued at $1,193,000 after buying an additional 9,000 shares during the period. Finally, BlackRock Inc. grew its stake in shares of Inovalon by 8.6% during the 3rd quarter. BlackRock Inc. now owns 5,121,921 shares of the technology company’s stock valued at $51,476,000 after buying an additional 403,957 shares during the period. 31.90% of the stock is owned by institutional investors.

The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 1.36. The stock has a market capitalization of $2.05 billion, a price-to-earnings ratio of 71.11, a price-to-earnings-growth ratio of 3.67 and a beta of 0.72.

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Inovalon Company Profile (NASDAQ:INOV)

Inovalon Holdings, Inc, a technology company, provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models in the healthcare industry. The company's platform enables the assessment and enhancement of clinical and quality outcomes and financial performance.

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