Its Stock Has Paid Off Big Time For Allscripts Healthcare Solutions Inc.

Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) stock fell -2.09% on Friday to $15.45 against a previous-day closing price of $15.78. With 1.7 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.61 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $15.83 whereas the lowest price it dropped to was $15.31. The 52-week range on MDRX shows that it touched its highest point at $23.25 and its lowest point at $13.05 during that stretch. It currently has a 1-year price target of $22.00. Beta for the stock currently stands at 1.03.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MDRX was down-trending over the past week, with a drop of -1.34%, but this was up by 3.21% over a month. Three-month performance dropped to -25.93% while six-month performance fell -25.51%. The stock lost -9.65% in the past year, while it has lost -16.26% so far this year. A look at the trailing 12-month EPS for MDRX yields 1.13 with Next year EPS estimates of 0.81. For the next quarter, that number is 0.15. This implies an EPS growth rate of 216.00% for this year and 6.58% for next year. EPS is expected to grow by 8.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 42.10%.

Float and Shares Shorts:

At present, 115.86 million MDRX shares are outstanding with a float of 113.32 million shares on hand for trading. On Jul 14, 2022, short shares totaled 10.98 million, which was 9.47% higher than short shares on Jun 14, 2022. In addition to Mr. Richard J. Poulton as the firm’s CEO & Director, Ms. Tejal Vakharia serves as its Sr. VP of Marketing & Gov. Affairs, Gen. Counsel and Chief Compliance Counsel.

Institutional Ownership:

Through their ownership of 106.14% of MDRX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 84.59% of MDRX, in contrast to 57.57% held by mutual funds. Shares owned by individuals account for 46.76%. As the largest shareholder in MDRX with 16.50% of the stake, BlackRock Fund Advisors holds 19,140,756 shares worth 19,140,756. A second-largest stockholder of MDRX, The Vanguard Group, Inc., holds 13,655,030 shares, controlling over 11.77% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in MDRX, holding 9,681,082 shares or 8.34% stake. With a 7.05% stake in MDRX, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,181,616 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.80% of MDRX stock, is the second-largest Mutual Fund holder. It holds 3,246,526 shares valued at 48.15 million. Vanguard Small Cap Index Fund holds 2.40% of the stake in MDRX, owning 2,785,996 shares worth 41.32 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MDRX since 10 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MDRX analysts setting a high price target of $26.00 and a low target of $17.00, the average target price over the next 12 months is $21.38. Based on these targets, MDRX could surge 68.28% to reach the target high and rise by 10.03% to reach the target low. Reaching the average price target will result in a growth of 38.38% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MDRX will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $0.99 being high and $0.54 being low. For MDRX, this leads to a yearly average estimate of $0.75. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Allscripts Healthcare Solutions Inc. reported $0.18 EPS against a consensus estimate of $0.18. The surprise factor in the prior quarter was -$0.13. Based on analyst estimates, the high estimate for the next quarter is $0.17 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.15.

Summary of Insider Activity:

Insiders traded MDRX stock several times over the past three months with 8 Buys and 12 Sells. In these transactions, 253,073 shares were bought while 501,914 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 966,693 while 1,291,411 shares were sold.

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