Zacks Investment Research cut shares of Omnicell, Inc. (NASDAQ:OMCL) from a hold rating to a sell rating in a report released on Wednesday, May 10th.
According to Zacks, “Omnicell exited first quarter 2017 on a disappointing note with year-over-year decline in both earnings and revenues. We are also concerned about the company’s increasing cost of production and integration expenses. The escalating costs continue to dent margin performance. Weak hospital spending trends and tough competition also pose threats. Over the last one month, Omnicell’s shares were trading neck to neck with the Zacks Categorized Medical Information Systems industry. Post its first-quarter debacle; the company witnessed a nose dive in its share price which is currently trading much below the broader industry. Yet, the market is optimistic on the growing significance of medication non-adherence where Omnicell is making substantial expansion. The company is also progressing well with its three-pronged growth strategy. We are particularly looking forward to the launch of the XT Series in the quarter which should boost revenue and profitability down the line.”
Several other brokerages have also recently issued reports on OMCL. Cantor Fitzgerald upped their target price on shares of Omnicell from $38.00 to $43.00 and gave the company an overweight rating in a research report on Monday, March 6th. Dougherty & Co assumed coverage on shares of Omnicell in a report on Thursday, January 19th. They set a buy rating and a $44.00 price target on the stock. Oppenheimer Holdings Inc. reiterated an outperform rating and set a $53.00 price target (up from $43.00) on shares of Omnicell in a report on Tuesday, April 25th. Piper Jaffray Companies downgraded shares of Omnicell from an overweight rating to a neutral rating and set a $40.00 price target on the stock. in a report on Friday, April 21st. Finally, TheStreet downgraded shares of Omnicell from a b- rating to a c+ rating in a report on Thursday, May 4th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and six have issued a buy rating to the company’s stock. Omnicell presently has an average rating of Buy and a consensus price target of $45.89.
Shares of Omnicell (NASDAQ:OMCL) traded up 0.49% during midday trading on Wednesday, reaching $40.95. The company had a trading volume of 200,876 shares. Omnicell has a one year low of $30.35 and a one year high of $42.35. The company has a 50 day moving average of $40.72 and a 200 day moving average of $36.84. The company’s market capitalization is $1.52 billion.
Omnicell (NASDAQ:OMCL) last announced its earnings results on Thursday, May 4th. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.36. The firm had revenue of $150.90 million for the quarter, compared to analysts’ expectations of $152.63 million. Omnicell had a net margin of 1.24% and a return on equity of 10.74%. The business’s revenue was down 12.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.35 EPS. Analysts predict that Omnicell will post $1.28 EPS for the current fiscal year.
In other news, VP J Christopher Drew sold 10,625 shares of the stock in a transaction that occurred on Tuesday, May 9th. The shares were sold at an average price of $40.97, for a total transaction of $435,306.25. Following the transaction, the vice president now directly owns 152,057 shares in the company, valued at $6,229,775.29. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Sara J. White sold 3,443 shares of the stock in a transaction that occurred on Tuesday, February 21st. The shares were sold at an average price of $38.06, for a total transaction of $131,040.58. Following the transaction, the director now owns 43,214 shares in the company, valued at $1,644,724.84. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 51,326 shares of company stock worth $2,079,077. Insiders own 3.75% of the company’s stock.
A number of large investors have recently bought and sold shares of the stock. BlackRock Inc. boosted its stake in Omnicell by 139,475.2% in the first quarter. BlackRock Inc. now owns 4,487,343 shares of the company’s stock worth $182,412,000 after buying an additional 4,484,128 shares during the last quarter. Vanguard Group Inc. boosted its stake in Omnicell by 5.5% in the first quarter. Vanguard Group Inc. now owns 1,860,299 shares of the company’s stock worth $75,622,000 after buying an additional 97,345 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Omnicell by 2.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,798,592 shares of the company’s stock worth $60,972,000 after buying an additional 47,138 shares during the last quarter. Champlain Investment Partners LLC boosted its stake in Omnicell by 6.2% in the first quarter. Champlain Investment Partners LLC now owns 1,698,140 shares of the company’s stock worth $69,029,000 after buying an additional 99,075 shares during the last quarter. Finally, Conestoga Capital Advisors LLC boosted its stake in Omnicell by 12.9% in the first quarter. Conestoga Capital Advisors LLC now owns 1,513,866 shares of the company’s stock worth $61,539,000 after buying an additional 172,642 shares during the last quarter. 94.34% of the stock is owned by institutional investors.
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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