Veeva Systems (VEEV) Cut to Hold at Zacks Investment Research

Veeva Systems (NYSE:VEEV) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.

According to Zacks, “Veeva Systems has outperformed its industry in a year’s time. Solid show by the Subscription business segment buoys optimism. Furthermore, the company continues benefiting from its flagship Vault platform. In fact, Veeva Vault’s customers have increased manifold in recent times. The company’s unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. Veeva’s new CRM Sunrise UI and Nitro look promising as well. In Commercial Cloud, Veeva Systems had a number of wins and expansions in all market segments and regions. The company is confident about growth in new markets with products like EDC, Safety, Nitro and Vault. On the flip side, high expenses on the operational side are a concern. Also, intense competition and a saturating life sciences market remain potent threats. Volatility in foreign currency exchange rate is an added concern. “

A number of other brokerages also recently weighed in on VEEV. Morgan Stanley reduced their price target on shares of Veeva Systems from $113.00 to $109.00 and set an “overweight” rating for the company in a report on Tuesday, October 23rd. JMP Securities increased their target price on shares of Veeva Systems to $108.00 and gave the stock an “outperform” rating in a report on Thursday, November 29th. KeyCorp lifted their price target on shares of Veeva Systems from $108.00 to $114.00 and gave the company an “overweight” rating in a research report on Thursday, November 29th. Bank of America reaffirmed a “buy” rating and set a $120.00 target price (up previously from $110.00) on shares of Veeva Systems in a report on Thursday, November 29th. Finally, Stephens began coverage on Veeva Systems in a report on Wednesday, January 16th. They set an “equal weight” rating and a $113.00 target price for the company. Seven analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of $104.06.

Shares of VEEV opened at $118.97 on Tuesday. The stock has a market cap of $16.91 billion, a price-to-earnings ratio of 129.32, a PEG ratio of 4.33 and a beta of 1.72. Veeva Systems has a one year low of $56.43 and a one year high of $120.10.

Veeva Systems (NYSE:VEEV) last announced its quarterly earnings data on Wednesday, November 28th. The technology company reported $0.35 EPS for the quarter, beating the Zacks’ consensus estimate of $0.30 by $0.05. Veeva Systems had a net margin of 23.61% and a return on equity of 15.51%. The firm had revenue of $224.70 million during the quarter, compared to the consensus estimate of $216.04 million. During the same quarter last year, the firm earned $0.25 earnings per share. The firm’s revenue was up 26.9% compared to the same quarter last year. Equities analysts forecast that Veeva Systems will post 1.19 earnings per share for the current year.

In related news, EVP Alan Mateo sold 538 shares of the firm’s stock in a transaction that occurred on Tuesday, December 4th. The shares were sold at an average price of $98.55, for a total value of $53,019.90. Following the completion of the transaction, the executive vice president now owns 25,167 shares of the company’s stock, valued at approximately $2,480,207.85. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Frederic Lequient sold 1,395 shares of the firm’s stock in a transaction on Tuesday, December 4th. The shares were sold at an average price of $98.55, for a total transaction of $137,477.25. Following the transaction, the senior vice president now owns 4,429 shares in the company, valued at approximately $436,477.95. The disclosure for this sale can be found here. Insiders sold a total of 182,261 shares of company stock worth $16,898,031 in the last ninety days. 15.97% of the stock is owned by corporate insiders.

A number of large investors have recently added to or reduced their stakes in VEEV. BlackRock Inc. boosted its holdings in Veeva Systems by 18.6% during the 3rd quarter. BlackRock Inc. now owns 7,710,493 shares of the technology company’s stock worth $839,440,000 after acquiring an additional 1,207,291 shares during the last quarter. FMR LLC raised its stake in Veeva Systems by 10.8% during the 3rd quarter. FMR LLC now owns 3,626,043 shares of the technology company’s stock valued at $394,767,000 after purchasing an additional 352,026 shares during the period. William Blair Investment Management LLC increased its position in shares of Veeva Systems by 3.9% during the 3rd quarter. William Blair Investment Management LLC now owns 2,666,366 shares of the technology company’s stock valued at $290,287,000 after purchasing an additional 100,561 shares during the last quarter. First Trust Advisors LP lifted its holdings in shares of Veeva Systems by 4.5% in the 4th quarter. First Trust Advisors LP now owns 2,407,957 shares of the technology company’s stock worth $215,079,000 after buying an additional 102,884 shares during the period. Finally, Winslow Capital Management LLC increased its position in Veeva Systems by 25.1% during the 3rd quarter. Winslow Capital Management LLC now owns 2,136,138 shares of the technology company’s stock valued at $232,561,000 after buying an additional 428,945 shares in the last quarter. 76.68% of the stock is currently owned by institutional investors and hedge funds.

Veeva Systems Company Profile

Veeva Systems Inc provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, and internationally. The company offers Veeva Commercial Cloud, a suite of multichannel customer relationship management applications, data solutions, and master data management solutions; and Veeva Vault, a cloud-based enterprise content management applications for managing commercial functions, including medical, sales, and marketing, as well as research and development functions, such as clinical, regulatory, quality, and safety.

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