Zacks Investment Research Downgrades Change Healthcare (NASDAQ:CHNG) to Sell

Change Healthcare (NASDAQ:CHNG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday, Zacks.com reports. They currently have a $9.00 price objective on the stock. Zacks Investment Research‘s target price suggests a potential downside of 18.70% from the stock’s previous close.

According to Zacks, “Change Healthcare underperformed the industry in a year’s time. Cut-throat competition remains a concern. However, Change Healthcare exited fourth-quarter fiscal 2020 on a strong note, with both earnings and revenues beating the Zacks Consensus Estimate. The Network Solutions recorded solid performance in the quarter. The company remains committed toward payment accuracy business, while remaining focused on healthcare plans and payers that have been generating continued double-digit growth for this business. Also, it has been utilizing AI and ML to detect inefficiencies and eliminating them from administrative processes in the healthcare system, thereby lowering costs and providing payers, providers, and patients with better outcomes. The company completed McKesson Corporation's disposition of its ownership interest in Change Healthcare.”

CHNG has been the topic of a number of other research reports. Deutsche Bank upped their price target on shares of Change Healthcare from $12.00 to $14.00 and gave the company a “buy” rating in a research note on Monday, June 8th. BidaskClub upgraded shares of Change Healthcare from a “sell” rating to a “hold” rating in a research report on Thursday, March 26th. SunTrust Banks lifted their price target on Change Healthcare from $15.00 to $17.00 and gave the stock a “buy” rating in a research report on Friday, June 5th. Credit Suisse Group reissued a “buy” rating and set a $16.00 price objective on shares of Change Healthcare in a research note on Wednesday, May 6th. Finally, Bank of America raised their price objective on Change Healthcare from $13.00 to $14.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the stock. Change Healthcare currently has a consensus rating of “Buy” and a consensus price target of $16.97.

Shares of CHNG stock opened at $11.07 on Monday. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.43. The stock has a market capitalization of $3.35 billion and a price-to-earnings ratio of 276.82. Change Healthcare has a 12-month low of $6.18 and a 12-month high of $17.57. The stock’s 50-day moving average price is $11.78 and its 200-day moving average price is $12.92.

Change Healthcare (NASDAQ:CHNG) last released its quarterly earnings data on Wednesday, June 3rd. The company reported $0.42 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.05. The business had revenue of $843.40 million for the quarter, compared to the consensus estimate of $834.69 million. Change Healthcare had a positive return on equity of 22.03% and a negative net margin of 0.17%. The company’s revenue was up .8% on a year-over-year basis. As a group, research analysts predict that Change Healthcare will post 1 EPS for the current fiscal year.

In related news, CFO Fredrik J. Eliasson bought 100,000 shares of the stock in a transaction dated Wednesday, June 10th. The stock was purchased at an average cost of $12.00 per share, with a total value of $1,200,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Hawk Ridge Capital Management LP purchased a new stake in Change Healthcare in the 4th quarter valued at about $41,224,000. Norges Bank purchased a new position in shares of Change Healthcare during the fourth quarter worth approximately $27,173,000. FMR LLC raised its stake in shares of Change Healthcare by 15.0% during the fourth quarter. FMR LLC now owns 3,831,224 shares of the company’s stock valued at $62,794,000 after acquiring an additional 500,470 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Change Healthcare by 192.7% in the fourth quarter. Bank of New York Mellon Corp now owns 702,842 shares of the company’s stock valued at $11,520,000 after purchasing an additional 462,725 shares during the period. Finally, NWQ Investment Management Company LLC purchased a new stake in shares of Change Healthcare in the fourth quarter valued at approximately $4,961,000.

About Change Healthcare

Change Healthcare Inc, an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system. It operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services.

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