Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) Volatility Spurs A Quest For Clarity


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Allscripts Healthcare Solutions Inc. (NASDAQ:MDRX). The institutional investor has increased its shareholding in the Healthcare company by 7.26% to 16.64 million shares with purchase of 1.13 million shares. This fresh investment now brings its stake to 10.24% valued currently at $112.64 million. In addition, Shapiro Capital Management LLC raised its holdings by 0.78 million to 12.46 million shares. And Dimensional Fund Advisors LP has lifted its position by 5.97% or 0.62 million shares – to 10.98 million shares.

    With over 1.52 million Allscripts Healthcare Solutions Inc. (MDRX) shares trading Tuesday and a closing price of $6.66 on the day, the dollar volume was approximately $10.15 million. The shares have shown a positive weekly performance of 1.22% and its price on 07/14/20 gained nearly 1.06%. Currently, there are 162.46M common shares owned by the public and among those 159.77M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 23 analysts who have offered their price forecasts for MDRX have a consensus price objective of $7.95. The analysts have set the share’s price value over the next 12 months at a high of $12.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Allscripts Healthcare Solutions Inc. stock is 2.50 for the next 12 months. The average price target is 16.75% above its last price level and an upside to the estimated low will see the stock lose -11.0% over that period. But an upside of 44.5% will see the stock hit the forecast high price target while mean target price for the stock is $8.00.

    Insiders at the company have transacted a total of 32 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 13 of these insider trades were purchases, accounting for 657,472 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 282,566 shares.

    The top 3 mutual fund holders in Allscripts Healthcare Solutions Inc. are iShares Core S&P Small Cap ETF, Vanguard Health Care Fund, and Undiscovered Managers Behavioral. iShares Core S&P Small Cap ETF owns 10.0 million shares of the company’s stock, all valued at over $67.73 million. Undiscovered Managers Behavioral sold 20200.0 shares to bring its total holdings to over 5.63 million shares at a value of $38.1 million. Undiscovered Managers Behavioral now owns shares totaling to 3.46% of the shares outstanding.

    Shares of Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) opened at $6.56, down -$0.03 from a prior closing price of $6.59. However, the script later closed the day at $6.66, up 1.06%. The company’s stock has a 5-day price change of 1.22% and 5.05% over the past three months. MDRX shares are trading -32.14% year to date (YTD), with the 12-month market performance down to -41.78% lower. It has a 12-month low price of $4.56 and touched a high of $11.82 over the same period. Currently, 1.52 million shares have been traded, compared to an average intraday trading volume of 2.29 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.74%, 2.60%, and -20.27% respectively.

    Institutional ownership of Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) 162.46M shares outstanding. Mutual fund holders own 60.51%, while other institutional holders and individual stakeholders account for 61.90% and 45.97% respectively.

    It has a market capitalization of $1.05B and a beta (3y monthly) value of 0.97. The earnings-per-share (ttm) stands at -$1.18. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.52% over the week and 5.54% over the month.

    Analysts forecast that Allscripts Healthcare Solutions Inc. (MDRX) will achieve an EPS of $0.13 for the current quarter, $0.17 for the next quarter and $0.72 for 2021. The lowest estimate earnings-per-share for the quarter is $0.05 while analysts give the company a high EPS estimate of $0.16. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to decrease by -10.40%, and 20.47% over the next financial year. EPS should grow at an annualized rate of 6.10% over the next five years, compared to -24.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 23 brokerage firm advisors rate Allscripts Healthcare Solutions Inc. (MDRX) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 15 of the 23 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the MDRX, a number of firms have released research notes about the stock. Jefferies stated their Hold rating for the stock in a research note on April 22, 2020, with the firm’s price target at $10.50-$7. RBC Capital Mkts coverage for the Allscripts Healthcare Solutions Inc. (MDRX) stock in a research note released on April 21, 2020 offered a Outperform rating with a price target of $8. SVB Leerink was of a view on April 13, 2020 that the stock is Mkt Perform, while UBS gave the stock Neutral rating on November 26, 2019, issuing a price target of $11.50. Deutsche Bank on their part issued Hold rating on September 26, 2019.


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