Zacks Investment Research lowered shares of Omnicell, Inc. (NASDAQ:OMCL) from a hold rating to a sell rating in a research note released on Wednesday, May 10th.
According to Zacks, “Omnicell exited first quarter 2017 on a disappointing note with year-over-year decline in both earnings and revenues. We are also concerned about the company’s increasing cost of production and integration expenses. The escalating costs continue to dent margin performance. Weak hospital spending trends and tough competition also pose threats. Over the last one month, Omnicell’s shares were trading neck to neck with the Zacks Categorized Medical Information Systems industry. Post its first-quarter debacle; the company witnessed a nose dive in its share price which is currently trading much below the broader industry. Yet, the market is optimistic on the growing significance of medication non-adherence where Omnicell is making substantial expansion. The company is also progressing well with its three-pronged growth strategy. We are particularly looking forward to the launch of the XT Series in the quarter which should boost revenue and profitability down the line.”
Several other equities analysts also recently weighed in on the company. Oppenheimer Holdings Inc. reiterated an outperform rating and set a $53.00 target price (up from $43.00) on shares of Omnicell in a research report on Tuesday, April 25th. Piper Jaffray Companies downgraded Omnicell from an overweight rating to a neutral rating and set a $40.00 target price on the stock. in a research report on Friday, April 21st. TheStreet downgraded Omnicell from a b- rating to a c+ rating in a research report on Thursday, May 4th. CIBC increased their target price on Omnicell from $43.00 to $53.00 and gave the stock an outperform rating in a research report on Wednesday, April 26th. Finally, Cantor Fitzgerald increased their target price on Omnicell from $38.00 to $43.00 and gave the stock an overweight rating in a research report on Monday, March 6th. Four analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The stock has an average rating of Buy and a consensus target price of $45.89.
Omnicell (NASDAQ:OMCL) opened at 42.05 on Wednesday. The firm’s 50-day moving average is $40.96 and its 200 day moving average is $37.47. The stock’s market cap is $1.56 billion. Omnicell has a one year low of $30.35 and a one year high of $42.35.
Omnicell (NASDAQ:OMCL) last posted its quarterly earnings data on Thursday, May 4th. The company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of ($0.30) by $0.36. The business had revenue of $150.90 million for the quarter, compared to analyst estimates of $152.63 million. Omnicell had a return on equity of 10.74% and a net margin of 1.24%. The business’s revenue for the quarter was down 12.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.35 earnings per share. On average, analysts anticipate that Omnicell will post $1.28 EPS for the current fiscal year.
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In other news, Director Gary S. Petersmeyer sold 2,200 shares of the stock in a transaction dated Thursday, May 25th. The stock was sold at an average price of $41.41, for a total value of $91,102.00. Following the completion of the sale, the director now owns 21,075 shares in the company, valued at $872,715.75. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Chairman Randall A. Lipps sold 18,200 shares of the stock in a transaction dated Tuesday, April 25th. The shares were sold at an average price of $41.00, for a total value of $746,200.00. Following the completion of the sale, the chairman now owns 208,982 shares of the company’s stock, valued at approximately $8,568,262. The disclosure for this sale can be found here. In the last quarter, insiders sold 62,231 shares of company stock valued at $2,543,280. Insiders own 3.75% of the company’s stock.
A number of large investors have recently modified their holdings of OMCL. Russell Investments Group Ltd. acquired a new stake in shares of Omnicell during the fourth quarter worth $1,628,000. First National Bank of Omaha acquired a new stake in shares of Omnicell during the first quarter worth $865,000. Comerica Bank raised its stake in shares of Omnicell by 2.4% in the fourth quarter. Comerica Bank now owns 68,676 shares of the company’s stock worth $2,290,000 after buying an additional 1,634 shares during the period. State Street Corp raised its stake in shares of Omnicell by 8.1% in the fourth quarter. State Street Corp now owns 802,579 shares of the company’s stock worth $27,210,000 after buying an additional 60,375 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in shares of Omnicell by 2.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,798,592 shares of the company’s stock worth $60,972,000 after buying an additional 47,138 shares during the period. Hedge funds and other institutional investors own 94.34% of the company’s stock.
Omnicell, Inc provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence.
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