Pediatrix Medical Group (NYSE:MD) Shares Gap Down After Earnings Miss

Pediatrix Medical Group, Inc. (NYSE:MD)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $21.97, but opened at $18.84. Pediatrix Medical Group shares last traded at $19.5790, with a volume of 495,787 shares changing hands.

The company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.03). Pediatrix Medical Group had a net margin of 8.44% and a return on equity of 20.45%. The company had revenue of $493.77 million during the quarter, compared to analyst estimates of $486.23 million. During the same quarter last year, the business posted $0.51 EPS. The firm’s revenue for the quarter was down 1.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. UBS Group lifted their target price on Pediatrix Medical Group from $16.50 to $23.00 and gave the company a “neutral” rating in a research report on Wednesday, November 5th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Pediatrix Medical Group in a research note on Monday, December 29th. Truist Financial raised their price target on shares of Pediatrix Medical Group from $17.00 to $24.00 and gave the company a “hold” rating in a research report on Monday, November 10th. Finally, Zacks Research downgraded shares of Pediatrix Medical Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 23rd. One research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $21.00.

Insider Buying and Selling

In other Pediatrix Medical Group news, CEO Mark S. Ordan sold 23,000 shares of the stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $22.41, for a total value of $515,430.00. Following the sale, the chief executive officer directly owned 302,805 shares of the company’s stock, valued at approximately $6,785,860.05. This represents a 7.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Pediatrix Medical Group

Institutional investors and hedge funds have recently modified their holdings of the company. Victory Capital Management Inc. raised its stake in Pediatrix Medical Group by 30.7% in the third quarter. Victory Capital Management Inc. now owns 4,126,207 shares of the company’s stock valued at $69,114,000 after buying an additional 968,553 shares in the last quarter. American Century Companies Inc. increased its holdings in shares of Pediatrix Medical Group by 38.9% in the 3rd quarter. American Century Companies Inc. now owns 2,682,976 shares of the company’s stock valued at $44,940,000 after acquiring an additional 751,109 shares during the last quarter. Allspring Global Investments Holdings LLC purchased a new position in shares of Pediatrix Medical Group in the 4th quarter valued at about $13,613,000. Ameriprise Financial Inc. raised its position in shares of Pediatrix Medical Group by 175.4% during the 2nd quarter. Ameriprise Financial Inc. now owns 744,473 shares of the company’s stock worth $10,683,000 after acquiring an additional 474,186 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its stake in Pediatrix Medical Group by 669.4% during the second quarter. BNP Paribas Financial Markets now owns 476,098 shares of the company’s stock worth $6,832,000 after purchasing an additional 414,216 shares during the last quarter. Institutional investors and hedge funds own 97.71% of the company’s stock.

Pediatrix Medical Group Price Performance

The stock has a market capitalization of $1.65 billion, a price-to-earnings ratio of 10.09 and a beta of 0.76. The company has a quick ratio of 1.83, a current ratio of 1.83 and a debt-to-equity ratio of 0.65. The stock has a fifty day moving average of $21.69 and a 200-day moving average of $19.51.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc (NYSE:MD) is a national physician-led medical group specializing in high-acuity newborn, maternal-fetal and pediatric subspecialty care. Headquartered in Sunrise, Florida, the company delivers clinical services through hospital-based physician staffing, advanced practitioner support and telemedicine programs. Its core specialties include neonatology, maternal-fetal medicine, pediatric cardiology, pediatric critical care, pediatric emergency medicine and anesthesiology.

Founded in 1979 and formerly known as MEDNAX, the company rebranded as Pediatrix Medical Group in 2022 to align its corporate identity with its primary clinical offerings.