MAXIMUS (MMS) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of MAXIMUS (NYSE:MMS) from a buy rating to a sell rating in a research note issued to investors on Friday morning, Zacks.com reports.

According to Zacks, “MAXIMUS’ top line and margins remains under pressure due to lower case load volumes on its welfare-to-work contracts. Global presence exposes MAXIMUS to foreign currency exchange rate fluctuations. The company’s Health Services Segment could experience seasonality due to transaction-based work such as program open enrollment periods. Shares of the company have underperformed its industry in the past year. On the flip side, MAXIMUS is progressing well with its digital transformation strategies. Digital initiatives are helping it broaden its BPO business and strengthen its market position by better serving its clients. The company is also expanding its clinical-related services in the federal marketplace. Strategic acquisitions complement MAXIMUS’ long-term organic growth. The company is consistent in rewarding its shareholders through share repurchases and dividend payments.”

Separately, ValuEngine lowered shares of MAXIMUS from a buy rating to a hold rating in a research note on Thursday, February 28th.



MMS stock opened at $70.81 on Friday. MAXIMUS has a 12 month low of $60.00 and a 12 month high of $73.81. The company has a market cap of $4.49 billion, a P/E ratio of 20.83, a price-to-earnings-growth ratio of 1.92 and a beta of 0.96. The company has a quick ratio of 2.32, a current ratio of 2.32 and a debt-to-equity ratio of 0.11.

MAXIMUS (NYSE:MMS) last released its earnings results on Thursday, February 7th. The health services provider reported $0.86 EPS for the quarter, beating the consensus estimate of $0.80 by $0.06. MAXIMUS had a net margin of 8.94% and a return on equity of 20.09%. The business had revenue of $664.60 million during the quarter, compared to analyst estimates of $672.08 million. During the same period in the prior year, the business earned $0.89 earnings per share. The business’s quarterly revenue was up 6.7% on a year-over-year basis. Equities analysts predict that MAXIMUS will post 3.66 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Wednesday, May 15th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.41%. The ex-dividend date of this dividend is Tuesday, May 14th. MAXIMUS’s dividend payout ratio is presently 29.41%.

In other news, Director Russell A. Beliveau sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $71.40, for a total transaction of $71,400.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Paul R. Lederer sold 6,715 shares of the business’s stock in a transaction that occurred on Wednesday, February 13th. The shares were sold at an average price of $70.04, for a total transaction of $470,318.60. Following the sale, the director now owns 59,029 shares in the company, valued at approximately $4,134,391.16. The disclosure for this sale can be found here. Over the last three months, insiders have sold 54,715 shares of company stock valued at $3,873,949. Company insiders own 2.20% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. Retirement Systems of Alabama raised its holdings in shares of MAXIMUS by 93.7% during the first quarter. Retirement Systems of Alabama now owns 161,050 shares of the health services provider’s stock valued at $11,431,000 after acquiring an additional 77,896 shares during the period. First Citizens Bank & Trust Co. increased its stake in MAXIMUS by 35.3% in the 1st quarter. First Citizens Bank & Trust Co. now owns 5,343 shares of the health services provider’s stock valued at $379,000 after buying an additional 1,395 shares during the period. 6 Meridian acquired a new position in MAXIMUS in the 1st quarter valued at approximately $489,000. Rowland & Co. Investment Counsel ADV increased its stake in MAXIMUS by 7.1% in the 1st quarter. Rowland & Co. Investment Counsel ADV now owns 26,220 shares of the health services provider’s stock valued at $1,861,000 after buying an additional 1,745 shares during the period. Finally, We Are One Seven LLC increased its stake in MAXIMUS by 97.8% in the 1st quarter. We Are One Seven LLC now owns 3,714 shares of the health services provider’s stock valued at $263,000 after buying an additional 1,836 shares during the period. Institutional investors and hedge funds own 95.61% of the company’s stock.

MAXIMUS Company Profile

MAXIMUS, Inc provides business process services (BPS) to government health and human services programs worldwide. The company's Health Services segment offers various BPS, appeals, and assessments for state, provincial, and national government programs, including Medicaid, Children's Health Insurance Program, Affordable Care Act, Health Insurance British Columbia, Health Assessment Advisory Service contract, and Preadmission Screening and Resident Reviews.

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