Higher One Holdings Price Target Cut to $6.00 (ONE)

Investment analysts at Compass Point lowered their target price on shares of Higher One Holdings (NYSE:ONE) from $7.00 to $6.00 in a note issued to investors on Monday, StockRatingsNetwork.com reports. The firm currently has a “sell” rating on the stock. Compass Point’s price objective suggests a potential downside of 21.98% from the company’s current price.

The analysts wrote, “We have become incrementally more cautious after taking a more detailed look at the Department of Education’s (ED) first draft of its new regulations on campus debit cards. Our early read on the draft rules was primarily focused around the elimination of certain fees; however, the proposal also includes several new provisions that could significantly diminish the company’s marketing efficiencies and drive down account adoption rates and revenues. While Higher One is slowly diversifying its revenue base, total account revenue still comprised a meaningful 64% of its 2013 total revenue. In addition, while this is only a first draft and provisions are subject to change, we believe the proposal provides key insight into ED’s initial stance on the issues. “Furthermore, given our expectation that a consensus by committee members is unlikely to be reached, the draft should be taken seriously as it would be up to ED to ultimately craft the final rules. Finally, while we do view ONE as a takeout candidate longer term given its large student account base, this uncertainty should keep potential bidders on the sidelines as the forward earnings outlook remains unclear.”

Shares of Higher One Holdings (NYSE:ONE) traded down 11.70% during mid-day trading on Monday, hitting $6.79. The stock had a trading volume of 433,221 shares. Higher One Holdings has a 52 week low of $6.97 and a 52 week high of $11.93. The stock has a 50-day moving average of $8.01 and a 200-day moving average of $8.46. The company has a market cap of $319.2 million and a P/E ratio of 26.52.

Higher One Holdings (NYSE:ONE) last issued its quarterly earnings data on Thursday, February 13th. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.04. The company had revenue of $56.60 million for the quarter, compared to the consensus estimate of $54.50 million. During the same quarter in the previous year, the company posted $0.17 earnings per share. The company’s revenue for the quarter was up 13.7% on a year-over-year basis. On average, analysts predict that Higher One Holdings will post $0.64 earnings per share for the current fiscal year.

Higher One Holdings, Inc (NYSE:ONE) is a provider of technology and payment services to the higher education industry.