IQVIA Holdings Inc. (IQV): An Overrated Stock Poised to Jump

Analysts are forecasting revenue to climb 21.3 percent to $2.62B in the next fiscal quarter, while earnings are seen soaring by nearly 5 percent to $1.47 per share. History has shown that shares in IQVIA Holdings Inc. have gone up on 4 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.42 per share, better than the $1.39, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.59B, better than the $2.58B analysts expected. Earnings are estimated to increase by 97.1 percent this year, 13.12 percent next year and continue to increase by 15.07 percent annually for the next 5 years.

IQVIA Holdings Inc. (IQV) will probably climb 0.14 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $155 price as 12-month high target. This represents a whopping 9.83 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $140, which represents a return potential of -0.8 percent when compared to the closing price of the stock of $141.13 on Thursday, February 14. The lowest price target for the stock is $120 — slightly more than -14.97 percent from IQV’s current share price.

The stock is currently hovering around the first support level of $136.28. Below this, the next support is placed in the zone of $131.43. Till the time, the IQV stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 77.16 on daily chart, which may remain a cause for concern. If the price breaks below $131.43 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $144.7 mark may result into a pull-back move towards $148.27 level.

On 14th of February, IQVIA Holdings Inc. (NYSE:IQV) shares ended higher after a volatile session. The shares accumulated 9.31 points or 7.06 percent at $141.13 with a heavy trade volume of 3.22 million shares. After opening the session at $135, the shares went as high as $143.42 and as low as $135, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $28.4 billion and now has 201.35 million shares outstanding. IQVIA Holdings Inc. (IQV) stock has gained 14.85 percent of market value in 21 trading days.

IQV stock has a trailing 3-year beta of 0.83, 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 $1.24 a share in the trailing twelve months. The stock’s value has surged 21.49 percent year to date (YTD) against a rise of 41.05 percent in 12 month’s time. The company’s shares still trade 1.06 percent away from its 1-year high of $139.65 and 54.12 percent up from 52-week low of $91.57. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of IQVIA Holdings Inc. (IQV) are trading at a P/E ratio of 131.73 times earnings reported for the past 12 months. The industry IQV operates in has an average P/E of 69.44. Its P/E ratio went as low as 21.65X and as high as 100.52 over the 5-year span. Further, it is sporting a 2.76 on the Price-to-Sales ratio. Compare this with the industry average P/S of 49.51. 35.8 percent is the gross profit margin for IQVIA Holdings Inc. and operating margin sits at 7.2 percent. Along with this, the net profit margin is 12.3 percent.

Let’s take a look at some insider activity at IQVIA Holdings Inc. (NYSE:IQV) and see the pattern. The earliest insider trade took place on 02/05/2019. Rittenmeyer Ronald A parted with a total of 3.84 thousand shares of company at average share price of $130. The total for the sales was set at $499.2 thousand. After this transaction, the Director account balance stood at 59.31 thousand shares. The stock grew 1.4 percent since that insider sale. On 12/04/2018, Connaughton John, Director, sold 767.57 thousand shares at a price per share of $123.72. This removed 94.96 million shares from the insider’s fortune and the stock saw a 6.55 percent rally in value since the news became public. This transaction left 2.97 million shares in the Director account.

On 12/04/2018, Director Tpg Group Holdings (Sbs) Advis performed a sale transaction worth $442.12 million. This sale at $123.72 each has eliminated 3.57 million shares from the insider’s portfolio position. Meanwhile, shares have recorded 6.55 percent increase since the transaction was reported. The insider now is left with 12.58 million shares remaining in the account. Canada Pension Plan Investment, who performs the 10% Owner job, sold 3.16 million shares for $391.5 million. The disposal occurred on 12/04/2018 was priced at $123.72 per share. The share price soared 6.55 percent since the reporting date. Canada Pension Plan Investment now left with a stake of 5.91 million IQV stock worth $834.38 million after the insider selling.