MAXIMUS (MMS) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of MAXIMUS (NYSE:MMS) from a hold rating to a buy rating in a research note released on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $80.00 price target on the health services provider’s stock.
According to Zacks, “MAXIMUS reported mixed second-quarter fiscal 2019 results, with earnings beating the Zacks Consensus Estimate but revenues lagging the same. Shares of MAXIMUS have gained significantly over the past year. The company is progressing well with its digital transformation strategies. Digital initiatives are helping it broaden its BPO business and strengthen market position by better serving clients. The company is also expanding its clinical-related services in the federal marketplace. Strategic acquisitions complement MAXIMUS’ long-term organic growth. The company is consistent in rewarding its shareholders through share repurchases and dividend payments. Despite such positives, MAXIMUS's top line and margins remains under pressure due to lower case load volumes on welfare-to-work contracts. Global presence exposes MAXIMUS to foreign currency exchange rate fluctuations.”
Separately, ValuEngine downgraded shares of MAXIMUS from a buy rating to a hold rating in a research report on Thursday, February 28th.
MAXIMUS (NYSE:MMS) last issued its quarterly earnings data on Thursday, May 9th. The health services provider reported $0.96 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.91 by $0.05. The firm had revenue of $736.50 million for the quarter, compared to the consensus estimate of $757.29 million. MAXIMUS had a net margin of 8.76% and a return on equity of 21.19%. MAXIMUS’s quarterly revenue was up 20.2% compared to the same quarter last year. During the same period last year, the firm posted $0.84 EPS. As a group, equities analysts anticipate that MAXIMUS will post 3.72 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Wednesday, May 15th will be given a $0.25 dividend. The ex-dividend date is Tuesday, May 14th. This represents a $1.00 annualized dividend and a yield of 1.37%. MAXIMUS’s dividend payout ratio is presently 29.41%.
In other MAXIMUS news, Vice Chairman Richard A. Montoni sold 12,000 shares of the firm’s stock in a transaction dated Tuesday, March 12th. The shares were sold at an average price of $70.69, for a total transaction of $848,280.00. Following the transaction, the insider now owns 412,874 shares of the company’s stock, valued at approximately $29,186,063.06. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Russell A. Beliveau sold 1,000 shares of the firm’s stock in a transaction dated Monday, April 1st. The shares were sold at an average price of $71.40, for a total transaction of $71,400.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 48,000 shares of company stock worth $3,403,630. 2.20% of the stock is currently owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the business. Cim LLC increased its stake in MAXIMUS by 1.8% during the 4th quarter. Cim LLC now owns 8,618 shares of the health services provider’s stock valued at $561,000 after buying an additional 150 shares during the period. NumerixS Investment Technologies Inc increased its stake in MAXIMUS by 9.1% during the 4th quarter. NumerixS Investment Technologies Inc now owns 2,400 shares of the health services provider’s stock valued at $155,000 after buying an additional 200 shares during the period. Riverhead Capital Management LLC increased its stake in MAXIMUS by 2.3% during the 1st quarter. Riverhead Capital Management LLC now owns 9,004 shares of the health services provider’s stock valued at $639,000 after buying an additional 200 shares during the period. Jane Street Group LLC increased its stake in MAXIMUS by 2.5% during the 4th quarter. Jane Street Group LLC now owns 9,342 shares of the health services provider’s stock valued at $608,000 after buying an additional 227 shares during the period. Finally, Chatham Capital Group Inc. increased its stake in MAXIMUS by 0.7% during the 1st quarter. Chatham Capital Group Inc. now owns 32,850 shares of the health services provider’s stock valued at $2,332,000 after buying an additional 241 shares during the period. 95.81% of the stock is currently owned by hedge funds and other institutional investors.
MAXIMUS Company Profile
MAXIMUS, Inc provides business process services (BPS) to government health and human services programs worldwide. The company's Health Services segment offers various BPS, appeals, and assessments for state, provincial, and national government programs, including Medicaid, Children's Health Insurance Program, Affordable Care Act, Health Insurance British Columbia, Health Assessment Advisory Service contract, and Preadmission Screening and Resident Reviews.
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