Zacks Investment Research downgraded shares of Omnicell, Inc. (NASDAQ:OMCL) from a hold rating to a strong sell rating in a research report released on Wednesday.

According to Zacks, “Omnicell exited third-quarter 2017 on a mixed note with earnings beating the Zacks Consensus Estimate and revenues missing the same. Also, weak margin scenario is a matter of concern. The company’s lowering of the high end of the full-year 2017 adjusted revenue guidanceis indicative of this overall dull scenario to remain. A tough competitive landscape also acts as a dampener. Over the last three months, Omnicell’s shares have been trading below the broader industry.However, on a positive note, the year-over-year increase in earnings and revenues was impressive. The company witnessed balanced growth across all its business lines in the quarter. We are encouraged to note that the company is working on product innovation through R&D. Over the recent past, Omnicell has been observed to gain consistently from series of product launches (the latest being XT Series Automated Supply Dispensing system) and strategic partnerships.”

Other equities research analysts have also recently issued reports about the stock. Dougherty & Co raised their price objective on shares of Omnicell from $45.00 to $49.00 and gave the stock a buy rating in a research report on Friday, July 28th. Craig Hallum raised their price objective on shares of Omnicell from $46.00 to $52.00 and gave the stock a buy rating in a research report on Friday, July 28th. Cantor Fitzgerald reiterated a buy rating and set a $47.00 price target on shares of Omnicell in a research report on Tuesday, July 25th. Oppenheimer Holdings, Inc. reiterated a buy rating and set a $55.00 price target on shares of Omnicell in a research report on Thursday, October 19th. Finally, Benchmark Co. lifted their price target on shares of Omnicell from $55.00 to $67.00 and gave the company a buy rating in a research report on Tuesday, September 5th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and seven have given a buy rating to the stock. Omnicell presently has a consensus rating of Buy and a consensus target price of $54.86.

Omnicell (NASDAQ:OMCL) traded up $0.45 during trading on Wednesday, reaching $49.50. 132,333 shares of the company traded hands, compared to its average volume of 233,141. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.08 and a current ratio of 1.53.

Omnicell (NASDAQ:OMCL) last released its quarterly earnings data on Thursday, October 26th. The company reported $0.42 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.42. Omnicell had a negative net margin of 0.51% and a negative return on equity of 0.79%. The firm had revenue of $186.78 million during the quarter, compared to analysts’ expectations of $192.45 million. During the same period last year, the business earned $0.40 earnings per share. Omnicell’s revenue was up 5.7% compared to the same quarter last year. analysts predict that Omnicell will post 0.12 EPS for the current year.

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In other news, VP Jorge R. Taborga sold 20,719 shares of the firm’s stock in a transaction that occurred on Monday, August 7th. The shares were sold at an average price of $50.98, for a total value of $1,056,254.62. Following the completion of the transaction, the vice president now owns 53,270 shares of the company’s stock, valued at $2,715,704.60. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Dan S. Johnston sold 16,400 shares of the firm’s stock in a transaction that occurred on Friday, August 18th. The shares were sold at an average price of $48.86, for a total transaction of $801,304.00. Following the completion of the transaction, the executive vice president now directly owns 51,621 shares of the company’s stock, valued at approximately $2,522,202.06. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 106,594 shares of company stock valued at $5,379,391. Company insiders own 3.77% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Oppenheimer Asset Management Inc. purchased a new position in shares of Omnicell in the first quarter valued at approximately $170,000. Turner Investments LLC purchased a new position in shares of Omnicell in the second quarter valued at approximately $181,000. Flinton Capital Management LLC boosted its stake in shares of Omnicell by 74.6% in the second quarter. Flinton Capital Management LLC now owns 4,216 shares of the company’s stock valued at $182,000 after purchasing an additional 1,802 shares during the period. Riverhead Capital Management LLC boosted its stake in shares of Omnicell by 76.3% in the second quarter. Riverhead Capital Management LLC now owns 4,230 shares of the company’s stock valued at $182,000 after purchasing an additional 1,830 shares during the period. Finally, Sei Investments Co. boosted its stake in shares of Omnicell by 36.4% in the second quarter. Sei Investments Co. now owns 4,652 shares of the company’s stock valued at $200,000 after purchasing an additional 1,242 shares during the period.

Omnicell Company Profile

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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Analyst Recommendations for Omnicell (NASDAQ:OMCL)

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