Nextgen Healthcare (NXGN) Upgraded by Zacks Investment Research to “Hold”

Zacks Investment Research upgraded shares of Nextgen Healthcare (NASDAQ:NXGN) from a sell rating to a hold rating in a research report released on Monday morning.

According to Zacks, “NextGen outperformed its industry in a year's time. NextGen currently rides on Software, hardware and other non-recurring unit. Management presently foresees solid growth prospects in the RCM pipeline as well. The NextGen population health analytics suite and NextGen mobile platform registered significant growth. Solid bookings growth deserves mention. For investors’ notice, the company expects high-single digit revenue growth by fiscal 2020. NextGen announced the availability of Quality/Cost Fusion – a new Population Health analytics capability. Quality/Cost Fusion is a part of NextGen Population Health platform – a modular, cloud-based solution. On the positive side, NextGen's lowered guidance for fiscal 2019 indicates looming concerns ahead. Also, the plummeting gross profit is a negative. Sluggishness in the recurring revenue segment in recent times adds to the woes. The company faces stiff rivalry in MedTech space. “

A number of other equities analysts also recently issued reports on NXGN. TheStreet upgraded Nextgen Healthcare from a c rating to a b- rating in a report on Thursday, November 1st. Cantor Fitzgerald reiterated a buy rating and issued a $23.00 price objective on shares of Nextgen Healthcare in a report on Thursday, December 6th. Morgan Stanley upgraded Nextgen Healthcare from an underweight rating to an equal weight rating and increased their price objective for the stock from $12.00 to $16.00 in a report on Thursday, November 1st. Finally, KeyCorp decreased their price objective on Nextgen Healthcare from $17.00 to $16.00 and set an underweight rating for the company in a report on Wednesday, October 31st. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $18.33.

Shares of NXGN stock opened at $16.69 on Monday. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.12. Nextgen Healthcare has a fifty-two week low of $12.24 and a fifty-two week high of $23.73. The company has a market capitalization of $1.03 billion, a price-to-earnings ratio of 29.28, a P/E/G ratio of 3.15 and a beta of 1.07.

Nextgen Healthcare (NASDAQ:NXGN) last announced its quarterly earnings data on Tuesday, October 30th. The company reported $0.24 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.19 by $0.05. Nextgen Healthcare had a return on equity of 10.23% and a net margin of 1.17%. The firm had revenue of $130.30 million during the quarter, compared to the consensus estimate of $134.55 million. During the same quarter in the previous year, the company posted $0.22 earnings per share. The business’s revenue was down 1.7% on a year-over-year basis. On average, equities analysts predict that Nextgen Healthcare will post 0.57 EPS for the current year.

Institutional investors and hedge funds have recently bought and sold shares of the business. Hanson & Doremus Investment Management bought a new position in Nextgen Healthcare in the third quarter worth $208,000. Investment Counselors of Maryland LLC purchased a new stake in shares of Nextgen Healthcare in the third quarter worth $24,953,000. GSA Capital Partners LLP purchased a new stake in shares of Nextgen Healthcare in the third quarter worth $723,000. Alambic Investment Management L.P. purchased a new stake in shares of Nextgen Healthcare in the third quarter worth $403,000. Finally, Foundry Partners LLC purchased a new stake in shares of Nextgen Healthcare in the third quarter worth $3,534,000. Institutional investors and hedge funds own 68.73% of the company’s stock.

Nextgen Healthcare Company Profile

NextGen Healthcare, Inc provides software, services, and analytics solutions to medical and dental group practices in the United States. The company's principal products include NextGen Enterprise EHR, which stores and maintains clinical patient information; and a workflow module, prescription management, automatic document and letter generation, patient education, referral tracking, interfaces to billing and lab systems, physician alerts and reminders, and reporting and data analysis tools.

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