Zacks Investment Research downgraded shares of MEDNAX (NYSE:MD) from a hold rating to a sell rating in a research note released on Wednesday.
According to Zacks, “Mednax’s shares have underperformed its industry in a year’s time. The Zacks Consensus Estimate for its current-year earnings has moved down 0.8% in the last 30 days. Escalating expenses remain a headwind for the company. The rate of increase in expenses has surpassed revenue growth in the past two years and the same trend was seen in the first nine months of 2018. Anesthesia mix shift to Medicare is another challenge to the company. However, the company is well-poised for growth on the back of a consistent rise in revenues. Mednax’s prudent acquisitions poise the company for long-term growth. It closed buyouts of five physician group practices in the first nine months of 2018.”
A number of other equities analysts have also recently weighed in on the stock. UBS Group assumed coverage on shares of MEDNAX in a research report on Friday, November 16th. They issued a sell rating and a $37.00 price objective for the company. Credit Suisse Group decreased their price objective on shares of MEDNAX from $55.00 to $50.00 and set an outperform rating for the company in a research report on Tuesday, November 6th. Robert W. Baird decreased their price objective on shares of MEDNAX from $48.00 to $40.00 and set a neutral rating for the company in a research report on Friday, November 2nd. BMO Capital Markets decreased their price objective on shares of MEDNAX from $48.00 to $43.00 and set a market perform rating for the company in a research report on Friday, November 2nd. Finally, ValuEngine cut shares of MEDNAX from a sell rating to a strong sell rating in a research report on Thursday, November 1st. Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating and four have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $51.20.
MEDNAX stock traded down $0.36 during trading on Wednesday, reaching $39.46. 3,654 shares of the company’s stock were exchanged, compared to its average volume of 850,463. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 0.67. MEDNAX has a 52-week low of $37.26 and a 52-week high of $63.04. The stock has a market cap of $3.56 billion, a price-to-earnings ratio of 12.48, a price-to-earnings-growth ratio of 1.08 and a beta of 0.32.
MEDNAX (NYSE:MD) last posted its quarterly earnings data on Thursday, November 1st. The company reported $0.94 earnings per share for the quarter, missing analysts’ consensus estimates of $0.97 by ($0.03). The firm had revenue of $896.60 million during the quarter, compared to analysts’ expectations of $908.15 million. MEDNAX had a net margin of 9.50% and a return on equity of 10.45%. The business’s quarterly revenue was up 3.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.87 earnings per share. Analysts forecast that MEDNAX will post 3.51 earnings per share for the current year.
Institutional investors have recently modified their holdings of the company. Point72 Hong Kong Ltd acquired a new stake in shares of MEDNAX in the 2nd quarter valued at about $172,000. Gideon Capital Advisors Inc. acquired a new stake in shares of MEDNAX in the 3rd quarter valued at about $203,000. PEAK6 Investments LLC acquired a new stake in shares of MEDNAX in the 3rd quarter valued at about $246,000. NumerixS Investment Technologies Inc raised its stake in shares of MEDNAX by 147.8% in the 2nd quarter. NumerixS Investment Technologies Inc now owns 5,700 shares of the company’s stock valued at $247,000 after purchasing an additional 3,400 shares in the last quarter. Finally, Iberiabank Corp acquired a new stake in shares of MEDNAX in the 3rd quarter valued at about $289,000. Institutional investors and hedge funds own 98.16% of the company’s stock.
MEDNAX Company Profile
MEDNAX, Inc, together with its subsidiaries, provides newborn, anesthesia, maternal-fetal, radiology, pediatric cardiology, and other pediatric subspecialties physician services in the United States and Puerto Rico. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians; anesthesia and anesthesia subspecialty care; and acute and chronic pain management services.
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