Model N (MODN) Upgraded at Zacks Investment Research

Zacks Investment Research upgraded shares of Model N (NYSE:MODN) from a hold rating to a buy rating in a report released on Monday morning. Zacks Investment Research currently has $20.00 target price on the software maker’s stock.

According to Zacks, “Model N reported narrower loss in second-quarter. Moreover, revenues grew year-over-year on rapid adoption of company’s Revenue Cloud offering for med-tech, pharma, semiconductor, manufacturing and high tech companies. The integration of Revitas acquisition is positive for the company as it not only reduced competition in the life sciences vertical but also bolstered its customer base. Management remains optimistic about the steady progress in the company’s transformation to a 100% Software-as-a-Service (SaaS) based model as it will drive recurring revenue growth in the long term. Notably, Model N has outperformed the industry in the past year. However, stiff competition from peers is a headwind. Also, higher operating losses and lack of big shot international customers is expected to hurt company’s growth initiatives.”

Other analysts also recently issued reports about the stock. ValuEngine upgraded shares of Model N from a sell rating to a hold rating in a report on Friday, February 2nd. JMP Securities upgraded shares of Model N from a market perform rating to an outperform rating in a report on Wednesday, February 7th. Finally, JPMorgan Chase set a $20.00 price target on shares of Model N and gave the company a hold rating in a report on Wednesday, March 14th. They noted that the move was a valuation call. Three research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The stock currently has an average rating of Buy and an average target price of $19.00.

Shares of MODN stock opened at $17.95 on Monday. Model N has a one year low of $17.55 and a one year high of $17.75. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.24.

Model N (NYSE:MODN) last announced its quarterly earnings data on Tuesday, May 8th. The software maker reported $0.02 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.04) by $0.06. The firm had revenue of $39.20 million for the quarter, compared to the consensus estimate of $38.32 million. Model N had a negative net margin of 19.31% and a negative return on equity of 41.62%. The company’s revenue was up 17.7% on a year-over-year basis. During the same period last year, the firm earned ($0.25) EPS. equities research analysts forecast that Model N will post -0.56 earnings per share for the current year.

In other Model N news, SVP Mark Albert Anderson sold 1,928 shares of Model N stock in a transaction on Wednesday, May 16th. The shares were sold at an average price of $17.66, for a total value of $34,048.48. Following the completion of the transaction, the senior vice president now directly owns 115,039 shares of the company’s stock, valued at approximately $2,031,588.74. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO David Barter sold 7,249 shares of Model N stock in a transaction on Wednesday, May 16th. The stock was sold at an average price of $17.66, for a total transaction of $128,017.34. Following the completion of the transaction, the chief financial officer now directly owns 132,832 shares of the company’s stock, valued at $2,345,813.12. The disclosure for this sale can be found here. Over the last quarter, insiders sold 19,330 shares of company stock worth $331,113. 18.90% of the stock is currently owned by insiders.

Several large investors have recently modified their holdings of MODN. Wells Fargo & Company MN grew its stake in shares of Model N by 62.8% in the 3rd quarter. Wells Fargo & Company MN now owns 24,151 shares of the software maker’s stock worth $362,000 after buying an additional 9,317 shares in the last quarter. California Public Employees Retirement System purchased a new position in shares of Model N in the 3rd quarter worth $354,000. Schwab Charles Investment Management Inc. grew its stake in shares of Model N by 9.7% in the 4th quarter. Schwab Charles Investment Management Inc. now owns 50,261 shares of the software maker’s stock worth $792,000 after buying an additional 4,461 shares in the last quarter. Strs Ohio purchased a new position in shares of Model N in the 4th quarter worth $264,000. Finally, PenderFund Capital Management Ltd. purchased a new position in shares of Model N in the 4th quarter worth $2,224,000. 62.16% of the stock is owned by institutional investors and hedge funds.

Model N Company Profile

Model N, Inc provides revenue management cloud solutions for the life sciences, technology, and manufacturing companies. The company's cloud-based revenue management solutions include Revenue Cloud for Pharma, Revenue Cloud for Med Tech, Revenue Cloud for High Tech, and Revenue Cloud. It develops software applications, such as managed care and government pricing for life science companies; and channel incentives for technology companies.

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