Medidata Solutions (MDSO) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Medidata Solutions (NASDAQ:MDSO) from a hold rating to a sell rating in a research report released on Tuesday morning, Zacks.com reports.

According to Zacks, “Medidata’s declining gross and operating margins raise concern. A string of acquisitions raises significant consolidation risks. Medidata’s overdependence on third parties may also be a concern. Stiff competition in the niche space adds to concerns. Nonetheless, the company’s Subscription revenues are strong. Focus on cloud-based services deserve mention. In fact, the company’s Medidata Cloud has witnessed developments in recent times. Management is optimistic about the recently-acquired SHYFT. A latest collaboration with Cognizant is likely to boost the company’s cloud-based platform. Furthermore, the company’s flagship RAVE genomics platform saw robust demand in the fourth quarter. Medidata outperformed the industry in a year’s time. “

A number of other research analysts have also commented on the company. William Blair assumed coverage on Medidata Solutions in a report on Monday. They issued an outperform rating and a $74.93 price objective on the stock. BidaskClub raised Medidata Solutions from a buy rating to a strong-buy rating in a report on Wednesday, March 20th. TheStreet raised Medidata Solutions from a c+ rating to a b- rating in a report on Friday, March 15th. Piper Jaffray Companies decreased their price objective on Medidata Solutions to $83.00 and set an overweight rating on the stock in a report on Friday, January 4th. Finally, Leerink Swann assumed coverage on Medidata Solutions in a report on Wednesday, January 2nd. They issued a market perform rating and a $70.00 price objective on the stock. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Medidata Solutions currently has an average rating of Buy and an average target price of $82.91.

Shares of NASDAQ MDSO opened at $78.46 on Tuesday. The company has a current ratio of 2.71, a quick ratio of 2.71 and a debt-to-equity ratio of 0.14. Medidata Solutions has a one year low of $60.10 and a one year high of $88.87. The firm has a market capitalization of $5.02 billion, a price-to-earnings ratio of 81.73, a PEG ratio of 5.47 and a beta of 1.35.

Medidata Solutions (NASDAQ:MDSO) last issued its quarterly earnings data on Tuesday, February 12th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.08. Medidata Solutions had a return on equity of 10.03% and a net margin of 8.17%. The firm had revenue of $167.19 million for the quarter, compared to analyst estimates of $168.08 million. During the same period in the prior year, the firm posted $0.41 EPS. The company’s revenue for the quarter was up 18.1% on a year-over-year basis. Equities analysts forecast that Medidata Solutions will post 0.8 earnings per share for the current fiscal year.

In other news, EVP Michael Pray sold 15,000 shares of the stock in a transaction on Friday, March 1st. The stock was sold at an average price of $76.50, for a total transaction of $1,147,500.00. Following the sale, the executive vice president now directly owns 77,134 shares of the company’s stock, valued at approximately $5,900,751. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Daniel Patrick Shannon sold 19,725 shares of the stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $75.17, for a total value of $1,482,728.25. Following the sale, the executive vice president now directly owns 70,497 shares in the company, valued at $5,299,259.49. The disclosure for this sale can be found here. Over the last three months, insiders have sold 47,237 shares of company stock worth $3,568,628. 4.70% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. LPL Financial LLC lifted its position in shares of Medidata Solutions by 25.2% during the 3rd quarter. LPL Financial LLC now owns 15,840 shares of the company’s stock worth $1,161,000 after buying an additional 3,185 shares during the last quarter. Legal & General Group Plc lifted its position in shares of Medidata Solutions by 2.0% during the 3rd quarter. Legal & General Group Plc now owns 57,587 shares of the company’s stock worth $4,221,000 after buying an additional 1,129 shares during the last quarter. Virginia Retirement Systems ET AL bought a new stake in shares of Medidata Solutions during the 4th quarter worth $452,000. BlackRock Inc. lifted its position in shares of Medidata Solutions by 2.9% during the 4th quarter. BlackRock Inc. now owns 6,995,601 shares of the company’s stock worth $471,644,000 after buying an additional 195,763 shares during the last quarter. Finally, American International Group Inc. lifted its position in shares of Medidata Solutions by 1.9% during the 4th quarter. American International Group Inc. now owns 161,630 shares of the company’s stock worth $10,897,000 after buying an additional 3,091 shares during the last quarter.

Medidata Solutions Company Profile

Medidata Solutions, Inc provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development of new therapies. The company's platform solutions include data capture and management and trial planning and management.

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