Omnicell (OMCL) Rating Lowered to Sell at Zacks Investment Research

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Omnicell (NASDAQ:OMCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.

According to Zacks, “Omnicell has been seeing increasing operating expenses. A resilient hospital capital expenditure environment might affect the adoption of the company’s solutions. A tough competitive landscape is a dampener as well. However, the company has been consistently seeing solid uptake of Omnicell XT. Recently, it has inked various deals for its XR2 and the IVX Workflow products. A rise in bookings and product backlogs was also observed in the last-reported quarter. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain traction from new launches, strategic partnerships (the recent one being with Stormont Vail Health) and digital transformation. Overall,  Omnicell has outperformed its industry over the past six months.”

OMCL has been the topic of several other reports. Oppenheimer upped their price objective on shares of Omnicell to $86.00 and gave the company an “outperform” rating in a report on Friday, December 7th. Piper Jaffray Companies reiterated a “neutral” rating and issued a $70.00 target price on shares of Omnicell in a research note on Friday, February 8th. They noted that the move was a valuation call. Cantor Fitzgerald reiterated an “overweight” rating and issued a $80.00 target price (up from $70.00) on shares of Omnicell in a research note on Thursday, December 6th. BidaskClub upgraded shares of Omnicell from a “hold” rating to a “buy” rating in a research note on Wednesday, February 13th. Finally, Dougherty & Co boosted their target price on shares of Omnicell from $78.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, March 7th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $76.56.

Shares of NASDAQ OMCL traded down $0.95 during trading hours on Monday, hitting $79.02. 11,258 shares of the stock were exchanged, compared to its average volume of 377,031. The company has a quick ratio of 1.45, a current ratio of 1.94 and a debt-to-equity ratio of 0.20. The firm has a market cap of $3.26 billion, a PE ratio of 51.73, a price-to-earnings-growth ratio of 3.72 and a beta of 1.25. Omnicell has a 12 month low of $41.59 and a 12 month high of $86.87.

Omnicell (NASDAQ:OMCL) last posted its quarterly earnings data on Thursday, February 7th. The company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.54 by $0.16. The firm had revenue of $211.75 million during the quarter, compared to analyst estimates of $215.41 million. Omnicell had a net margin of 4.79% and a return on equity of 9.31%. Omnicell’s revenue was up 7.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.55 EPS. On average, equities research analysts anticipate that Omnicell will post 1.83 earnings per share for the current fiscal year.

In other Omnicell news, insider Joseph Brian Spears sold 9,346 shares of the company’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $85.10, for a total transaction of $795,344.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Peter J. Kuipers sold 24,504 shares of the company’s stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $83.97, for a total transaction of $2,057,600.88. Following the transaction, the insider now owns 64,618 shares of the company’s stock, valued at $5,425,973.46. The disclosure for this sale can be found here. Insiders have sold 88,630 shares of company stock valued at $7,247,719 over the last 90 days. 3.71% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently modified their holdings of OMCL. Victory Capital Management Inc. purchased a new position in Omnicell during the third quarter worth about $494,000. Wells Fargo & Company MN boosted its stake in Omnicell by 1.7% during the third quarter. Wells Fargo & Company MN now owns 197,630 shares of the company’s stock worth $14,210,000 after buying an additional 3,353 shares during the period. SG Americas Securities LLC boosted its stake in Omnicell by 1,281.5% during the third quarter. SG Americas Securities LLC now owns 26,636 shares of the company’s stock worth $1,915,000 after buying an additional 24,708 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its stake in Omnicell by 14.0% during the third quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 9,375 shares of the company’s stock worth $674,000 after buying an additional 1,151 shares during the period. Finally, Janus Henderson Group PLC boosted its stake in Omnicell by 9.8% during the third quarter. Janus Henderson Group PLC now owns 1,662,720 shares of the company’s stock worth $119,550,000 after buying an additional 148,741 shares during the period. Institutional investors and hedge funds own 98.62% of the company’s stock.

Omnicell Company Profile

Omnicell, Inc provides medication and supply dispensing automation, central pharmacy automation, analytics software, and medication adherence solutions for the healthcare industry worldwide. It operates in two segments, Automation and Analytics, and Medication Adherence. The Automation and Analytics segment offers central pharmacy automation solutions, including automated storage and retrieval systems, such as XR2 Automated Central Pharmacy System, a building block of autonomous pharmacy vision; IV compounding robots and workflow management systems; inventory management software; and controlled substance management systems.

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