Quality Systems (QSII) Downgraded by Zacks Investment Research to Sell
Quality Systems (NASDAQ:QSII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Over the past year, Quality Systems underperformed the broader industry in terms of price. The company’s ongoing sluggishness in the RCM customer base, intensifying competition and a strict regulatory environment are likely to mar the top line. Furthermore, management slashed the high end of the fiscal 2018 earnings guidance, signaling at trouble down the road. The company expects software license and hardware revenues to remain under pressure for the remainder of the fiscal. On the brighter side, acquisitions have significantly expanded Quality Systems’ product pipeline over the last couple of years.We are particularly upbeat about the company’s solid performance with regard to total software, hardware and related revenues. Quality Systems’ solid recurring revenue base is a key catalyst for the quarters to come. Furthermore, the company’s new Entrada and Eagle Dream solutions are likely to drive growth. “
Other equities analysts have also issued research reports about the company. Jefferies Group reiterated a “hold” rating and issued a $15.50 price target on shares of Quality Systems in a research note on Sunday, October 8th. Cantor Fitzgerald reiterated a “hold” rating and issued a $13.00 price target on shares of Quality Systems in a research note on Thursday, October 26th. Royal Bank of Canada set a $12.00 price objective on Quality Systems and gave the stock a “sell” rating in a research report on Friday, October 27th. Oppenheimer restated a “hold” rating on shares of Quality Systems in a research report on Friday, September 15th. Finally, SunTrust Banks restated a “hold” rating and set a $15.00 price objective on shares of Quality Systems in a research report on Friday, November 17th. Four analysts have rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $15.07.
Shares of Quality Systems (QSII) traded down $0.23 during midday trading on Tuesday, reaching $13.78. The company’s stock had a trading volume of 166,300 shares, compared to its average volume of 317,886. The firm has a market cap of $877.39, a PE ratio of 32.05, a PEG ratio of 3.15 and a beta of 0.83. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.23 and a quick ratio of 1.22. Quality Systems has a 52-week low of $12.61 and a 52-week high of $17.74.
Quality Systems (NASDAQ:QSII) last announced its quarterly earnings data on Thursday, October 26th. The company reported $0.22 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.16 by $0.06. The firm had revenue of $132.61 million during the quarter, compared to analysts’ expectations of $130.15 million. Quality Systems had a return on equity of 14.70% and a net margin of 5.12%. The company’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.23 EPS. equities research analysts expect that Quality Systems will post 0.57 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in QSII. Russell Investments Group Ltd. grew its position in shares of Quality Systems by 7.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 43,374 shares of the company’s stock valued at $746,000 after buying an additional 3,124 shares during the last quarter. Municipal Employees Retirement System of Michigan grew its position in shares of Quality Systems by 3.8% in the 2nd quarter. Municipal Employees Retirement System of Michigan now owns 10,900 shares of the company’s stock valued at $188,000 after buying an additional 400 shares during the last quarter. Great West Life Assurance Co. Can grew its position in shares of Quality Systems by 6.1% in the 2nd quarter. Great West Life Assurance Co. Can now owns 67,437 shares of the company’s stock valued at $1,160,000 after buying an additional 3,900 shares during the last quarter. Schwab Charles Investment Management Inc. grew its position in shares of Quality Systems by 37.3% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 977,794 shares of the company’s stock valued at $16,828,000 after buying an additional 265,798 shares during the last quarter. Finally, Arizona State Retirement System grew its position in shares of Quality Systems by 0.4% in the 2nd quarter. Arizona State Retirement System now owns 24,206 shares of the company’s stock valued at $417,000 after buying an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.
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Quality Systems Company Profile
Quality Systems, Inc (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices.
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