Zacks Investment Research cut shares of Model N (NYSE:MODN) from a buy rating to a hold rating in a research report report published on Wednesday morning.

According to Zacks, “The successful integration of Revitas boosted Model N’s performance as well as its customer base. Management is also optimistic about the steady progress in the company’s transformation to a 100% Software-as-a-Service (SaaS) based model. The Revenue Cloud offering for med-tech, pharma and high tech companies is also gaining traction, driving expansion in customer base. Moreover, the transition to cloud-based applications will drive recurring revenue growth in the long term. However, the company is yet to report profit, which doesn't augur well for investors. Moreover, the company is facing stiff competition as evident from inconsistent revenue growth.”

Several other brokerages have also issued reports on MODN. JPMorgan Chase & Co. lowered shares of Model N from an overweight rating to a neutral rating and set a $18.00 price target for the company. in a report on Tuesday, December 12th. Raymond James Financial reissued a hold rating on shares of Model N in a report on Monday, December 4th. Dougherty & Co boosted their price target on shares of Model N from $17.00 to $20.00 and gave the company a buy rating in a report on Tuesday, December 19th. Finally, BidaskClub raised shares of Model N from a buy rating to a strong-buy rating in a report on Saturday, September 30th. Four research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Model N presently has a consensus rating of Buy and an average price target of $18.00.

Model N (MODN) opened at $15.60 on Wednesday. Model N has a fifty-two week low of $8.45 and a fifty-two week high of $16.75. The stock has a market cap of $457.55, a price-to-earnings ratio of -11.30 and a beta of 1.17. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.13 and a quick ratio of 1.13.

Model N (NYSE:MODN) last announced its quarterly earnings results on Tuesday, November 7th. The software maker reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.03. Model N had a negative net margin of 30.15% and a negative return on equity of 55.26%. The company had revenue of $35.61 million during the quarter, compared to analyst estimates of $34.86 million. During the same quarter in the previous year, the business earned ($0.28) EPS. The firm’s revenue was up 24.9% on a year-over-year basis. sell-side analysts expect that Model N will post -0.64 earnings per share for the current fiscal year.

In related news, Director Alan S. Henricks sold 4,730 shares of the business’s stock in a transaction on Friday, November 10th. The shares were sold at an average price of $14.59, for a total value of $69,010.70. Following the sale, the director now directly owns 40,134 shares of the company’s stock, valued at approximately $585,555.06. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Alan S. Henricks sold 13,475 shares of the business’s stock in a transaction on Tuesday, November 14th. The shares were sold at an average price of $14.50, for a total transaction of $195,387.50. Following the completion of the sale, the director now directly owns 40,134 shares in the company, valued at $581,943. The disclosure for this sale can be found here. Insiders sold a total of 21,801 shares of company stock worth $317,080 over the last ninety days. 20.40% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of MODN. Schwab Charles Investment Management Inc. lifted its position in Model N by 61.8% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 45,800 shares of the software maker’s stock valued at $479,000 after acquiring an additional 17,500 shares in the last quarter. Rhumbline Advisers lifted its position in Model N by 3.7% in the 2nd quarter. Rhumbline Advisers now owns 25,302 shares of the software maker’s stock valued at $337,000 after acquiring an additional 905 shares in the last quarter. Bank of New York Mellon Corp lifted its position in Model N by 1.2% in the 2nd quarter. Bank of New York Mellon Corp now owns 80,185 shares of the software maker’s stock valued at $1,066,000 after acquiring an additional 923 shares in the last quarter. Prudential Financial Inc. bought a new stake in Model N in the 2nd quarter valued at $141,000. Finally, JPMorgan Chase & Co. lifted its position in Model N by 44.3% in the 2nd quarter. JPMorgan Chase & Co. now owns 22,826 shares of the software maker’s stock valued at $303,000 after acquiring an additional 7,004 shares in the last quarter. 65.77% of the stock is currently owned by institutional investors and hedge funds.

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Model N Company Profile

Model N, Inc is a provider of revenue management solutions for life science and technology companies. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process.

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