Zacks Investment Research Downgrades RadNet (RDNT) to Sell

Zacks Investment Research cut shares of RadNet (NASDAQ:RDNT) from a hold rating to a sell rating in a research report released on Tuesday morning, Zacks.com reports.

According to Zacks, “RadNet, Inc., is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers. RadNet offers to its patients and referring physicians the full spectrum of diagnostic imaging exams, including PET/CT, MRI, CT, Nuclear Medicine, Mammography, Ultrasound and X-ray, as well as numerous other procedures. RadNet utilizes best of breed technology to appropriately serve the medical communities in which it operates. “

A number of other research firms have also issued reports on RDNT. Raymond James lowered shares of RadNet from a strong-buy rating to an outperform rating and lifted their price objective for the company from $16.00 to $17.50 in a research note on Friday, March 15th. They noted that the move was a valuation call. BidaskClub raised shares of RadNet from a hold rating to a buy rating in a research report on Saturday, March 16th. ValuEngine downgraded shares of RadNet from a buy rating to a hold rating in a research report on Tuesday, March 19th. Finally, TheStreet raised shares of RadNet from a c rating to a b- rating in a research report on Friday, March 15th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and one has issued a buy rating to the company. The company has an average rating of Hold and a consensus target price of $17.75.

Shares of RDNT traded up $0.19 during mid-day trading on Tuesday, reaching $13.43. 1,110 shares of the stock traded hands, compared to its average volume of 306,086. The firm has a market capitalization of $659.57 million, a P/E ratio of 20.24, a P/E/G ratio of 5.02 and a beta of 1.16. RadNet has a 12-month low of $9.97 and a 12-month high of $16.54. The company has a quick ratio of 0.87, a current ratio of 0.72 and a debt-to-equity ratio of 4.74.

RadNet (NASDAQ:RDNT) last posted its quarterly earnings data on Thursday, May 9th. The medical research company reported ($0.08) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.08). The company had revenue of $271.50 million for the quarter, compared to analyst estimates of $256.30 million. RadNet had a net margin of 3.53% and a return on equity of 22.38%. The business’s quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.15) earnings per share. Equities analysts expect that RadNet will post 0.35 earnings per share for the current fiscal year.

In other news, Director Michael L. Md Sherman sold 20,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 20th. The shares were sold at an average price of $13.89, for a total transaction of $277,800.00. Following the completion of the sale, the director now owns 279,720 shares of the company’s stock, valued at $3,885,310.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Mark Stolper sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, March 18th. The stock was sold at an average price of $14.99, for a total transaction of $224,850.00. The disclosure for this sale can be found here. Insiders have sold 46,556 shares of company stock valued at $672,754 in the last three months. Corporate insiders own 7.56% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in RDNT. Moab Capital Partners LLC boosted its holdings in RadNet by 46.0% in the fourth quarter. Moab Capital Partners LLC now owns 3,372,539 shares of the medical research company’s stock worth $34,299,000 after purchasing an additional 1,062,592 shares during the period. Dalton Greiner Hartman Maher & Co. boosted its holdings in RadNet by 262.5% in the first quarter. Dalton Greiner Hartman Maher & Co. now owns 1,197,068 shares of the medical research company’s stock worth $14,832,000 after purchasing an additional 866,818 shares during the period. Phoenician Capital LLC acquired a new position in RadNet in the fourth quarter worth $6,102,000. Global Alpha Capital Management Ltd. acquired a new position in RadNet in the fourth quarter worth $5,594,000. Finally, BlackRock Inc. boosted its holdings in RadNet by 21.1% in the third quarter. BlackRock Inc. now owns 3,089,617 shares of the medical research company’s stock worth $46,499,000 after purchasing an additional 537,422 shares during the period. 64.05% of the stock is owned by institutional investors and hedge funds.

About RadNet

RadNet, Inc, together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services.

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