athenahealth, Inc. (ATHN): Analyst Ratings You Should Pay Attention To

Analysts at Wells Fargo cut their rating on shares of athenahealth, Inc. (NASDAQ:ATHN) from Outperform to Market Perform in their opinion released on November 27. Stifel analysts again handed out a Hold rating to ATHN stock but they lifted target price for the shares in a flash note to investors on July 31. The price target has been raised from $134 to $140. Stifel, analysts launched coverage of ATHN stock with a Hold rating, according to their flash note to investors on July 31. Analysts at Berenberg downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to May 15.

athenahealth, Inc. (NASDAQ:ATHN) short sellers believe it will rise in price. The most recent short interest data has been released for the January 31st settlement date, which shows a -155,493 share decrease in total short interest for ATHN, to 2,196,416, a retreat of 6.61% since January 15th. Average daily volume for athenahealth, Inc. at the January 31st settlement jumped to 701,009, as compared to 682,630 at the January 15th report. That brought days to cover to 3.133221, a 9.06% decrease from the 3.445364 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 2.9 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of athenahealth, Inc. (NASDAQ:ATHN)’s prospects. The earliest insider trade took place on 10/26/2018. Porter Jonathan D. parted with a total of 0.15 thousand shares of company at average share price of $118.33. The total for the sales was set at $17.75 thousand. After this transaction, the SVP, Chief Product Officer account balance stood at 16.11 thousand shares. The stock grew 14.08 percent since that insider sale. On 10/01/2018, Haley Daniel P, Chief Legal & Admin Officer, sold 2.2 thousand shares at a price per share of $127.23. This removed 280.41 thousand shares from the insider’s fortune and the stock saw a 6.1 percent rally in value since the news became public. This transaction left 8.35 thousand shares in the Chief Legal & Admin Officer account. On 09/26/2018, SVP, Chief Product Officer Porter Jonathan D. performed a sale transaction worth $19.73 thousand. This sale at $131.51 each has eliminated 0.15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 2.65 percent increase since the transaction was reported. The insider now is left with 16.26 thousand shares remaining in the account. Porter Jonathan D., who performs the SVP, Chief Product Officer job, sold 0.15 thousand shares for $22.88 thousand. The disposal occurred on 08/27/2018 was priced at $152.53 per share. The share price plunged -11.5 percent since the reporting date. Porter Jonathan D. now left with a stake of 16.41 thousand ATHN stock worth $2.21 million after the insider selling.

athenahealth, Inc. (ATHN) is expected to jump by 3.89 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $160 price as 12-month high target. This represents a whopping 18.53 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $135, which represents a return potential of 0.01 percent when compared to the closing price of the stock of $134.99 on Monday, February 11. The lowest price target for the stock is $135 — slightly more than 0.01 percent from ATHN’s current share price.

The shares are currently floating around the first support level of $134.97. Below this, the next support is placed in the zone of $134.96. Till the time, the ATHN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 66.09 on daily chart, which may remain a cause for concern. If the price breaks below $134.96 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $135 mark may result into a pull-back move towards $135.02 level.

ATHN shares accumulated 0.01 points or 0.01 percent on Monday to $134.99 with a heavy trade volume of 2.51 million shares. After opening the session at $134.99, the shares went as high as $135 and as low as $134.97, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.48 billion and now has 40.6 million shares outstanding. athenahealth, Inc. (ATHN) stock has gained 1.46 percent of market value in 21 trading days.

ATHN stock has a trailing 3-year beta of 0.57, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.99 a share in the trailing twelve months. The stock’s value has surged 2.32 percent year to date (YTD) against a rise of 6.07 percent in 12 month’s time. The company’s shares still trade -17.66 percent away from its 1-year high of $163.94 and 15.6 percent up from 52-week low of $116.77. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of athenahealth, Inc. (ATHN) are trading at a P/E ratio of 45.11 times earnings reported for the past 12 months. The industry ATHN operates in has an average P/E of 69.3. Its P/E ratio went as low as 107.22X and as high as 1983.78 over the 5-year span. Further, it is sporting a 4.18 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.57. 53.7 percent is the gross profit margin for athenahealth, Inc. and operating margin sits at 12.4 percent. Along with this, the net profit margin is 9.6 percent.

ATHN will be showing off its Q4 earnings. Analysts are forecasting revenue to climb 8.5 percent to $357M in the next fiscal quarter, while earnings are seen soaring by nearly 5.41 percent to $1.17 per share. History has shown that shares in athenahealth, Inc. have gone down on 20 different earnings reaction days and are predicted to add 0.09 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.96 per share, worse than the $1, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $331M, worse than the $337M analysts expected. Earnings are estimated to increase by 136.9 percent this year, 15.56 percent next year and continue to increase by 29.32 percent annually for the next 5 years.