Zacks Investment Research Downgrades Medidata Solutions (MDSO) to Hold

Medidata Solutions (NASDAQ:MDSO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Monday.

According to Zacks, “Medidata has outperformed the industry in a year. The company continues to gain from strong Subscription revenues and focus on cloud-based services. Medidata Cloud also witnessed few developments of late. The company is optimistic about the recently-acquired SHYFT. The latest collaboration with Novartis is likely to support the commercialization of key therapies in Europe. Flagship RAVE genomics platform is much in demand. On the negative side, Medidata's declining gross and operating margins in the last-reported quarter is concerning. A string of acquisitions poses consolidation risks. The company’s overdependence on third parties may also be a concern for the long term. Medidata’s cloud-based platform may lead to complexities and in turn high correctional costs. Stiff competition in the niche space is another drag. The stock is currently overvalued at the moment.”

Several other equities research analysts also recently issued reports on MDSO. Piper Jaffray Companies cut their price objective on Medidata Solutions from $96.00 to $93.00 in a report on Thursday, October 18th. Royal Bank of Canada set a $86.00 price objective on Medidata Solutions and gave the company a “buy” rating in a report on Friday, October 19th. JPMorgan Chase & Co. cut their price objective on Medidata Solutions to $74.00 and set a “neutral” rating on the stock in a report on Friday, October 19th. ValuEngine upgraded Medidata Solutions from a “hold” rating to a “buy” rating in a report on Thursday, November 1st. Finally, TheStreet downgraded Medidata Solutions from a “b” rating to a “c+” rating in a report on Thursday, December 20th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $83.73.



Shares of MDSO stock traded up $1.10 on Monday, hitting $74.28. The stock had a trading volume of 47,995 shares, compared to its average volume of 448,189. The company has a current ratio of 2.52, a quick ratio of 2.52 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $4.48 billion, a PE ratio of 87.35, a P/E/G ratio of 4.23 and a beta of 1.32. Medidata Solutions has a 1 year low of $60.10 and a 1 year high of $88.87.

In other Medidata Solutions news, CFO Rouven Bergmann sold 10,000 shares of the company’s stock in a transaction dated Monday, December 3rd. The stock was sold at an average price of $79.00, for a total transaction of $790,000.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Michael Pray sold 7,000 shares of the company’s stock in a transaction dated Monday, November 26th. The stock was sold at an average price of $73.02, for a total value of $511,140.00. Following the sale, the executive vice president now owns 52,408 shares in the company, valued at approximately $3,826,832.16. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 41,632 shares of company stock worth $3,126,704. 4.70% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently modified their holdings of the business. Benjamin F. Edwards & Company Inc. increased its holdings in shares of Medidata Solutions by 127.2% in the 4th quarter. Benjamin F. Edwards & Company Inc. now owns 945 shares of the company’s stock valued at $64,000 after acquiring an additional 529 shares during the last quarter. Oppenheimer Asset Management Inc. purchased a new position in shares of Medidata Solutions in the 4th quarter valued at about $90,000. Whittier Trust Co. of Nevada Inc. increased its holdings in shares of Medidata Solutions by 1,068.0% in the 4th quarter. Whittier Trust Co. of Nevada Inc. now owns 2,558 shares of the company’s stock valued at $172,000 after acquiring an additional 2,339 shares during the last quarter. Stephens Inc. AR increased its holdings in shares of Medidata Solutions by 8.7% in the 4th quarter. Stephens Inc. AR now owns 2,722 shares of the company’s stock valued at $184,000 after acquiring an additional 218 shares during the last quarter. Finally, Man Group plc purchased a new position in shares of Medidata Solutions in the 3rd quarter valued at about $205,000.

Medidata Solutions Company Profile

Medidata Solutions, Inc provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development of new therapies. The company's platform solutions include data capture and management and trial planning and management.

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