Maximus (NYSE:MMS) Stock Price Down 11.6% – Should You Sell?

Maximus, Inc. (NYSE:MMS) shares traded down 11.6% during trading on Thursday . The stock traded as low as $54.16 and last traded at $55.85. Approximately 242,936 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 717,651 shares. The stock had previously closed at $63.15.

Maximus News Summary

Here are the key news stories impacting Maximus this week:

• Positive Sentiment: Fiscal Q3 adjusted earnings were $2.22 per share, ahead of analyst estimates of approximately $2.20–$2.21 and up from $2.16 a year earlier. Higher margins also supported the quarter’s bottom-line performance. Maximus Q3 Earnings Beat Estimates, Increase Year Over Year
• Positive Sentiment: The earnings beat, year-over-year EPS growth and stronger margins indicate that Maximus is maintaining profitability even as sales soften. Maximus Q3 Earnings Beat Estimates
• Neutral Sentiment: Management’s fiscal Q3 earnings call focused on the quarterly performance and updated outlook, providing investors with additional context on operating trends and the company’s expectations for the remainder of fiscal 2026. Maximus Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue was $1.28 billion, below the $1.33 billion consensus estimate and down 5.1% year over year. The shortfall suggests softer demand or project timing is limiting growth. Maximus Fiscal Q3 Earnings Snapshot
• Negative Sentiment: Maximus reduced fiscal 2026 EPS guidance to $7.90–$8.20, below the consensus estimate of $8.43. Revenue guidance of $5.2–$5.4 billion remains broadly in line with expectations at the midpoint, but the lower profit outlook is a key overhang for MMS. Updated Maximus Fiscal 2026 Guidance

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Wall Street Zen cut Maximus from a “buy” rating to a “hold” rating in a report on Saturday. Zacks Research cut Maximus from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Weiss Ratings downgraded Maximus from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 20th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has a consensus rating of “Hold”.

Maximus Price Performance

The business’s 50-day simple moving average is $58.63 and its 200-day simple moving average is $67.46. The stock has a market cap of $3.11 billion, a PE ratio of 8.75 and a beta of 0.59. The company has a quick ratio of 2.21, a current ratio of 2.42 and a debt-to-equity ratio of 0.90.

Maximus (NYSE:MMS) last posted its earnings results on Thursday, August 6th. The health services provider reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.21 by $0.01. The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.33 billion. Maximus had a net margin of 7.07% and a return on equity of 24.91%. Maximus’s revenue for the quarter was down 5.1% on a year-over-year basis. During the same period in the prior year, the business posted $2.16 earnings per share. Maximus has set its FY 2026 guidance at 7.900-8.200 EPS. On average, research analysts expect that Maximus, Inc. will post 8.05 EPS for the current fiscal year.

Maximus Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, August 14th will be issued a $0.33 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.32 annualized dividend and a yield of 2.2%. Maximus’s dividend payout ratio (DPR) is 19.76%.

Hedge Funds Weigh In On Maximus

Several hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in shares of Maximus in the 2nd quarter worth about $400,186,000. Reinhart Partners LLC. increased its position in shares of Maximus by 131.8% during the second quarter. Reinhart Partners LLC. now owns 1,982,415 shares of the health services provider’s stock valued at $106,575,000 after buying an additional 1,127,346 shares during the period. Norges Bank purchased a new position in shares of Maximus during the fourth quarter valued at about $60,393,000. River Road Asset Management LLC raised its stake in Maximus by 236.1% in the fourth quarter. River Road Asset Management LLC now owns 823,262 shares of the health services provider’s stock worth $71,064,000 after buying an additional 578,326 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Maximus in the second quarter worth about $26,239,000. 97.21% of the stock is owned by hedge funds and other institutional investors.

About Maximus

Maximus, Inc (NYSE: MMS) is a global provider of government services focused on delivering health and human services programs. The company partners with federal, state, and local agencies to administer and manage programs that support individuals and families across various stages of life. Key service areas include eligibility determination and enrollment services for Medicaid, Medicare, Children’s Health Insurance Program (CHIP) and other public assistance programs, as well as call center operations, case management and program integrity solutions.