Medidata Solutions (NASDAQ:MDSO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Medidata's declining gross and operating margins in the last-reported is concerning. A string of acquisitions poses consolidation risks. The company’s overdependence on third parties may also be a concern for the long term. Medidata’s cloud-based platform may lead to complexities and in turn high correctional costs. Stiff competition in the niche space is another drag. The stock is currently overvalued at the moment. On the positive side, The company continues to gain from strong Subscription revenues and focus on cloud-based services. Medidata Cloud also witnessed few developments of late. The company is optimistic about the recently-acquired SHYFT. The latest collaboration with Novartis is likely to support the commercialization of key therapies in Europe. Flagship RAVE genomics platform is much in demand. Medidata has outperformed the industry in a year. “

A number of other research firms also recently commented on MDSO. ValuEngine downgraded Medidata Solutions from a “buy” rating to a “hold” rating in a research note on Monday, September 17th. JPMorgan Chase & Co. downgraded Medidata Solutions from a “neutral” rating to an “underweight” rating in a research note on Thursday, December 13th. Royal Bank of Canada decreased their price target on Medidata Solutions to $91.00 and set an “outperform” rating for the company in a research note on Tuesday, September 25th. Piper Jaffray Companies decreased their price target on Medidata Solutions from $96.00 to $93.00 in a research note on Thursday, October 18th. Finally, BidaskClub downgraded Medidata Solutions from a “strong-buy” rating to a “buy” rating in a research note on Friday, October 5th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and six have assigned a buy rating to the company’s stock. Medidata Solutions currently has a consensus rating of “Hold” and a consensus target price of $82.82.

Shares of Medidata Solutions stock traded up $1.52 during trading hours on Tuesday, hitting $69.00. 4,034 shares of the company’s stock traded hands, compared to its average volume of 536,640. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.52 and a quick ratio of 2.52. The company has a market capitalization of $3.95 billion, a PE ratio of 79.87, a P/E/G ratio of 3.70 and a beta of 1.32. Medidata Solutions has a twelve month low of $59.60 and a twelve month high of $88.87.

Medidata Solutions (NASDAQ:MDSO) last announced its earnings results on Thursday, October 18th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.06. The company had revenue of $163.41 million during the quarter, compared to the consensus estimate of $162.09 million. Medidata Solutions had a return on equity of 10.70% and a net margin of 8.43%. The company’s revenue was up 17.6% on a year-over-year basis. During the same period last year, the firm earned $0.33 earnings per share. On average, equities analysts expect that Medidata Solutions will post 0.85 earnings per share for the current fiscal year.

In other Medidata Solutions news, Director Robert Taylor sold 2,120 shares of the firm’s stock in a transaction dated Monday, January 7th. The shares were sold at an average price of $64.70, for a total value of $137,164.00. Following the transaction, the director now owns 41,916 shares of the company’s stock, valued at $2,711,965.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Rouven Bergmann sold 10,000 shares of the firm’s stock in a transaction dated Monday, December 3rd. The stock was sold at an average price of $79.00, for a total transaction of $790,000.00. The disclosure for this sale can be found here. Insiders sold 36,150 shares of company stock worth $2,676,186 in the last three months. 4.70% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the business. AMP Capital Investors Ltd lifted its holdings in Medidata Solutions by 16.8% in the third quarter. AMP Capital Investors Ltd now owns 53,310 shares of the company’s stock worth $3,933,000 after acquiring an additional 7,670 shares during the last quarter. Quantbot Technologies LP bought a new stake in shares of Medidata Solutions during the third quarter valued at approximately $229,000. Rice Hall James & Associates LLC raised its holdings in shares of Medidata Solutions by 106.7% during the third quarter. Rice Hall James & Associates LLC now owns 251,973 shares of the company’s stock valued at $18,472,000 after buying an additional 130,070 shares during the last quarter. Metropolitan Life Insurance Co. NY raised its holdings in shares of Medidata Solutions by 3.0% during the second quarter. Metropolitan Life Insurance Co. NY now owns 34,464 shares of the company’s stock valued at $2,776,000 after buying an additional 993 shares during the last quarter. Finally, Great West Life Assurance Co. Can raised its holdings in shares of Medidata Solutions by 4.5% during the second quarter. Great West Life Assurance Co. Can now owns 34,943 shares of the company’s stock valued at $2,815,000 after buying an additional 1,503 shares during the last quarter.

Medidata Solutions Company Profile

Medidata Solutions, Inc provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development of new therapies. The company's platform solutions include data capture and management and trial planning and management.

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