NEW YORK (TheStreet) -- Shares of Alliance HealthCare Services (AIQ are up 3.51% to $29.16 after it was reported that the provider of diagnostics imaging and radiation oncology services is exploring a potential sale of the company, sources told Reuters.

The California-based company, which has a market capitalization of about $300 million, hired investment bank Moelis & Co. (MC - Get Report)  .

Private equity firm Oaktree Capital Management LP (OAK - Get Report) owns a 44% stake.

TheStreet Ratings team rates ALLIANCE HEALTHCARE SVCS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALLIANCE HEALTHCARE SVCS INC (AIQ) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, increase in stock price during the past year and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 121.5% when compared to the same quarter one year prior, rising from -$12.96 million to $2.78 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • ALLIANCE HEALTHCARE SVCS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ALLIANCE HEALTHCARE SVCS INC reported poor results of -$2.02 versus -$1.13 in the prior year.
  • AIQ, with its decline in revenue, underperformed when compared the industry average of 20.6%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: AIQ Ratings Report
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