Zacks Investment Research lowered shares of Quality Systems (NASDAQ:QSII) from a hold rating to a sell rating in a research report released on Monday, February 12th.
According to Zacks, “Quality Systems had an unfavorable run on the bourses over the last year. Of the major concerns, intensifying competition in the HCIT markets is likely to keep the company’s margins under pressure. Further, the company expects software license and hardware revenues to remain under pressure for the remainder of the fiscal. Operating expenses are also high for Quality Systems due to acquisition-driven costs. Continued acquisition poses integration risks for the acquiring company.However, Quality Systems ended the third quarter on a positive note, wherein adjusted earnings came in line with the Zacks consensus estimate. Acquisitions have significantly expanded Quality Systems’ product line over the last couple of years. the company’s solid recurring revenue base is a key catalyst. Revenues are also expected to be benefitted from EagleDream software platform, which has been enjoying favorable market response.”
Several other equities research analysts have also recently issued reports on QSII. Robert W. Baird restated a hold rating and set a $15.00 price objective on shares of Quality Systems in a report on Tuesday, October 17th. Cantor Fitzgerald reiterated a hold rating and issued a $13.00 target price on shares of Quality Systems in a report on Thursday, October 26th. Royal Bank of Canada set a $12.00 target price on Quality Systems and gave the company a sell rating in a report on Friday, October 27th. Jefferies Group reiterated a hold rating and issued a $14.50 target price on shares of Quality Systems in a report on Sunday, October 29th. Finally, SunTrust Banks reiterated a hold rating and issued a $15.00 target price on shares of Quality Systems in a report on Friday, November 17th. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus price target of $14.44.
Quality Systems (QSII) traded down $0.20 on Monday, hitting $12.49. The stock had a trading volume of 365,500 shares, compared to its average volume of 343,625. Quality Systems has a 1-year low of $12.25 and a 1-year high of $17.74. The firm has a market cap of $808.53, a PE ratio of 44.61, a P/E/G ratio of 2.90 and a beta of 0.73. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.12.
Quality Systems (NASDAQ:QSII) last released its quarterly earnings data on Thursday, January 25th. The company reported $0.15 earnings per share for the quarter, meeting the consensus estimate of $0.15. The firm had revenue of $131.70 million during the quarter, compared to the consensus estimate of $130.63 million. Quality Systems had a return on equity of 12.08% and a net margin of 3.39%. Quality Systems’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period last year, the business posted $0.23 EPS. sell-side analysts expect that Quality Systems will post 0.56 EPS for the current fiscal year.
A number of institutional investors have recently made changes to their positions in QSII. FMR LLC bought a new position in shares of Quality Systems during the second quarter valued at approximately $20,233,000. AXA grew its holdings in shares of Quality Systems by 138.2% during the fourth quarter. AXA now owns 351,800 shares of the company’s stock valued at $4,777,000 after purchasing an additional 204,100 shares during the last quarter. Koch Industries Inc. bought a new position in shares of Quality Systems during the second quarter valued at approximately $189,000. Vanguard Group Inc. grew its holdings in shares of Quality Systems by 3.8% during the second quarter. Vanguard Group Inc. now owns 4,691,366 shares of the company’s stock valued at $80,739,000 after purchasing an additional 170,698 shares during the last quarter. Finally, BlackRock Inc. grew its holdings in shares of Quality Systems by 2.9% during the second quarter. BlackRock Inc. now owns 5,919,215 shares of the company’s stock valued at $101,869,000 after purchasing an additional 166,302 shares during the last quarter. 67.43% of the stock is owned by hedge funds and other institutional investors.
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Quality Systems Company Profile
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.
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