Zacks Investment Research Lowers Model N (MODN) to Hold

Model N (NYSE:MODN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday, January 3rd.

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 recently commented on MODN. Raymond James Financial reiterated a “hold” rating on shares of Model N in a research report on Monday, December 4th. Dougherty & Co upped their target price on shares of Model N from $17.00 to $20.00 and gave the company a “buy” rating in a research report on Tuesday, December 19th. BidaskClub cut shares of Model N from a “buy” rating to a “hold” rating in a research report on Wednesday, October 25th. Finally, JPMorgan Chase & Co. cut shares of Model N from an “overweight” rating to a “neutral” rating and set a $18.00 price objective for the company. in a research report on Tuesday, December 12th. Five analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Model N has an average rating of “Hold” and a consensus target price of $18.00.

Shares of Model N (NYSE:MODN) traded up $0.30 on Wednesday, hitting $15.85. The stock had a trading volume of 135,181 shares, compared to its average volume of 117,635. The firm has a market cap of $464.88, a P/E ratio of -11.49 and a beta of 1.17. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.27. Model N has a fifty-two week low of $8.45 and a fifty-two week high of $16.75.

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

In other Model N news, Director Alan S. Henricks sold 4,730 shares of the stock in a transaction dated Friday, November 10th. The shares were sold at an average price of $14.59, for a total value of $69,010.70. Following the transaction, 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 SEC, which can be accessed through this hyperlink. Also, Director Alan S. Henricks sold 13,475 shares of the stock in a transaction dated 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 transaction, the director now directly owns 40,134 shares in the company, valued at $581,943. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 21,801 shares of company stock valued at $317,080. Company insiders own 18.90% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in MODN. Rhumbline Advisers increased its holdings in shares of Model N by 3.7% during the second quarter. Rhumbline Advisers now owns 25,302 shares of the software maker’s stock worth $337,000 after purchasing an additional 905 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Model N by 1.2% during the second quarter. Bank of New York Mellon Corp now owns 80,185 shares of the software maker’s stock worth $1,066,000 after purchasing an additional 923 shares during the period. Voya Investment Management LLC increased its holdings in shares of Model N by 14.7% during the second quarter. Voya Investment Management LLC now owns 14,963 shares of the software maker’s stock worth $199,000 after purchasing an additional 1,915 shares during the period. First Light Asset Management LLC increased its holdings in shares of Model N by 0.6% during the second quarter. First Light Asset Management LLC now owns 423,211 shares of the software maker’s stock worth $5,629,000 after purchasing an additional 2,461 shares during the period. Finally, New York State Common Retirement Fund increased its holdings in shares of Model N by 2.9% during the second quarter. New York State Common Retirement Fund now owns 216,062 shares of the software maker’s stock worth $2,874,000 after purchasing an additional 6,099 shares during the period. 65.77% of the stock is currently owned by hedge funds and other institutional investors.

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About Model N

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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