Medidata Solutions (MDSO) Raised to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Medidata Solutions (NASDAQ:MDSO) from a sell rating to a hold rating in a research note released on Tuesday. The brokerage currently has $77.00 price target on the stock.

According to Zacks, “Medidata has outperformed the industry in a year. The company continues to gain from strong Subscription revenues and focus on cloud-based services. Medidata Cloud also witnessed few developments of late. The company is optimistic about the recently-acquired SHYFT. The latest collaboration with Novartis is likely to support the commercialization of key therapies in Europe. Flagship RAVE genomics platform is much in demand. On the negative side, Medidata's declining gross and operating margins in the last-reported quarter is concerning. A string of acquisitions poses consolidation risks. The company’s overdependence on third parties may also be a concern for the long term. Medidata’s cloud-based platform may lead to complexities and in turn high correctional costs. Stiff competition in the niche space is another drag. The stock is currently overvalued at the moment.”

MDSO has been the subject of a number of other research reports. Royal Bank of Canada cut their price target on shares of Medidata Solutions to $91.00 and set an outperform rating for the company in a report on Tuesday, September 25th. ValuEngine raised shares of Medidata Solutions from a hold rating to a buy rating in a report on Thursday, November 1st. Piper Jaffray Companies decreased their price objective on shares of Medidata Solutions to $83.00 and set an overweight rating on the stock in a report on Friday, January 4th. JPMorgan Chase & Co. decreased their price objective on shares of Medidata Solutions to $74.00 and set a neutral rating on the stock in a report on Friday, October 19th. Finally, TheStreet downgraded shares of Medidata Solutions from a b rating to a c+ rating in a report on Thursday, December 20th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $83.09.

Shares of MDSO stock traded up $1.35 during mid-day trading on Tuesday, hitting $69.46. 773,673 shares of the stock were exchanged, compared to its average volume of 524,613. The company has a quick ratio of 2.52, a current ratio of 2.52 and a debt-to-equity ratio of 0.15. Medidata Solutions has a 52-week low of $59.60 and a 52-week high of $88.87. The firm has a market cap of $4.22 billion, a P/E ratio of 81.72, a PEG ratio of 3.99 and a beta of 1.32.

Medidata Solutions (NASDAQ:MDSO) last released its quarterly earnings results on Thursday, October 18th. The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.06. The firm had revenue of $163.41 million during the quarter, compared to the consensus estimate of $162.09 million. Medidata Solutions had a net margin of 8.43% and a return on equity of 10.70%. The company’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.33 EPS. On average, analysts anticipate that Medidata Solutions will post 0.85 earnings per share for the current fiscal year.

In other Medidata Solutions news, EVP Michael Pray sold 7,000 shares of the stock in a transaction on Monday, November 26th. The stock was sold at an average price of $73.02, for a total transaction of $511,140.00. Following the transaction, the executive vice president now owns 52,408 shares in the company, valued at approximately $3,826,832.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Rouven Bergmann sold 10,000 shares of the stock in a transaction on Wednesday, November 28th. The stock was sold at an average price of $75.00, for a total value of $750,000.00. Following the transaction, the chief financial officer now owns 88,862 shares in the company, valued at approximately $6,664,650. The disclosure for this sale can be found here. In the last 90 days, insiders sold 36,150 shares of company stock worth $2,676,186. 4.70% of the stock is owned by company insiders.

A number of hedge funds have recently bought and sold shares of MDSO. Thrivent Financial for Lutherans increased its holdings in Medidata Solutions by 5.8% in the third quarter. Thrivent Financial for Lutherans now owns 14,280 shares of the company’s stock worth $1,047,000 after purchasing an additional 787 shares in the last quarter. Bahl & Gaynor Inc. increased its holdings in Medidata Solutions by 2.0% in the third quarter. Bahl & Gaynor Inc. now owns 41,537 shares of the company’s stock worth $3,045,000 after purchasing an additional 825 shares in the last quarter. Schroder Investment Management Group increased its holdings in Medidata Solutions by 9.2% in the third quarter. Schroder Investment Management Group now owns 13,114 shares of the company’s stock worth $961,000 after purchasing an additional 1,101 shares in the last quarter. Legal & General Group Plc increased its holdings in Medidata Solutions by 2.0% in the third quarter. Legal & General Group Plc now owns 57,587 shares of the company’s stock worth $4,221,000 after purchasing an additional 1,129 shares in the last quarter. Finally, Hsbc Holdings PLC increased its holdings in Medidata Solutions by 37.0% in the third quarter. Hsbc Holdings PLC now owns 4,436 shares of the company’s stock worth $325,000 after purchasing an additional 1,198 shares in the last quarter.

Medidata Solutions Company Profile

Medidata Solutions, Inc provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development of new therapies. The company's platform solutions include data capture and management and trial planning and management.

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