Allscripts Healthcare Solutions (MDRX) Showing Signs Of A Dead Cat Bounce Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
Allscripts Healthcare Solutions
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Allscripts Healthcare Solutions as such a stock due to the following factors:
- MDRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.2 million.
- MDRX has traded 3.8 million shares today.
- MDRX is up 3% today.
- MDRX was down 5.8% yesterday.
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More details on MDRX:
Allscripts Healthcare Solutions, Inc. Currently there are 8 analysts that rate Allscripts Healthcare Solutions a buy, 1 analyst rates it a sell, and 10 rate it a hold.
The average volume for Allscripts Healthcare Solutions has been 2.8 million shares per day over the past 30 days. Allscripts Healthcare has a market cap of $2.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.40 and a short float of 9.9% with 2.67 days to cover. Shares are down 6% year-to-date as of the close of trading on Friday.
Analysis:
rates Allscripts Healthcare Solutions as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- ALLSCRIPTS HEALTHCARE SOLTNS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ALLSCRIPTS HEALTHCARE SOLTNS continued to lose money by earning -$0.37 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus -$0.37).
- Net operating cash flow has significantly increased by 191.33% to $51.50 million when compared to the same quarter last year. In addition, ALLSCRIPTS HEALTHCARE SOLTNS has also vastly surpassed the industry average cash flow growth rate of 60.98%.
- The gross profit margin for ALLSCRIPTS HEALTHCARE SOLTNS is rather high; currently it is at 50.60%. Regardless of MDRX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MDRX's net profit margin of -0.64% significantly underperformed when compared to the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Health Care Technology industry average, but is greater than that of the S&P 500. The net income increased by 89.3% when compared to the same quarter one year prior, rising from -$20.62 million to -$2.20 million.
- MDRX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.20%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full Allscripts Healthcare Solutions Ratings Report.
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