Take off with Model N Inc. (MODN): Get ready for trading

Model N Inc. (NYSE: MODN) stock jumped 28.98% on Friday to $33.78 against a previous-day closing price of $26.19. With 1.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.14 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $35.00 whereas the lowest price it dropped to was $29.98. The 52-week range on MODN shows that it touched its highest point at $39.99 and its lowest point at $20.95 during that stretch. It currently has a 1-year price target of $34.43. Beta for the stock currently stands at 0.82.

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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 MODN was up-trending over the past week, with a rise of 28.69%, but this was up by 35.17% over a month. Three-month performance surged to 50.33% while six-month performance rose 30.07%. The stock lost -5.85% in the past year, while it has gained 12.49% so far this year. A look at the trailing 12-month EPS for MODN yields -0.78 with Next year EPS estimates of 0.66. For the next quarter, that number is 0.15. This implies an EPS growth rate of -108.70% for this year and 11.38% for next year.

Float and Shares Shorts:

At present, 36.62 million MODN shares are outstanding with a float of 33.87 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.51 million, which was 6.81% higher than short shares on Jun 14, 2022. In addition to Mr. Jason Blessing as the firm’s Pres, CEO & Director, Mr. John Ederer serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 99.30% of MODN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.39% of MODN, in contrast to 45.44% held by mutual funds. Shares owned by individuals account for 35.66%. As the largest shareholder in MODN with 13.54% of the stake, Conestoga Capital Advisors LLC holds 4,984,368 shares worth 4,984,368. A second-largest stockholder of MODN, Artisan Partners LP, holds 3,266,079 shares, controlling over 8.87% of the firm’s shares. Neuberger Berman Investment Advis is the third largest shareholder in MODN, holding 3,233,359 shares or 8.78% stake. With a 9.22% stake in MODN, the Conestoga Small Cap Fund is the largest stakeholder. A total of 3,394,719 shares are owned by the mutual fund manager. The Neuberger Berman Genesis Fund, which owns about 5.94% of MODN stock, is the second-largest Mutual Fund holder. It holds 2,185,793 shares valued at 55.91 million. Artisan International Small-Mid F holds 5.73% of the stake in MODN, owning 2,110,996 shares worth 54.0 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, MODN reported revenue of $53.28M and operating income of -$3.94M. Over the past year, revenue came in at $207.34M while operating income stood at -$12.25M. It generated -$8.04M net income for the quarter, which came to -$28.20M over the last twelve months. The EBITDA in the recently reported quarter was -$1.59M and diluted EPS was -$0.22. EBITDA for the full year was -$3.30M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MODN since 8 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 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 MODN analysts setting a high price target of $39.00 and a low target of $30.00, the average target price over the next 12 months is $35.14. Based on these targets, MODN could surge 15.45% to reach the target high and fall by -11.19% to reach the target low. Reaching the average price target will result in a growth of 4.03% 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. MODN will report FY 2022 earnings on 11/08/2022. Analysts have provided yearly estimates in a range of $0.71 being high and $0.70 being low. For MODN, this leads to a yearly average estimate of $0.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Model N Inc. surprised analysts by $0.09 when it reported $0.23 EPS against a consensus estimate of $0.14. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.20 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.19.

Summary of Insider Activity:

Insiders traded MODN stock several times over the past three months with 0 Buys and 34 Sells. In these transactions, 0 shares were bought while 31,197 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 139 over the past year. The total number of shares bought during that period was 513,211 while 144,216 shares were sold.

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