Zacks Investment Research downgraded shares of The Ultimate Software Group (NASDAQ:ULTI) from a buy rating to a hold rating in a research report sent to investors on Friday morning, Zacks.com reports.
According to Zacks, “Ultimate Software provides cloud-based HCM software solutions. The company is benefiting from increasing demand for HCM solutions, traction in mid & strategic markets and impressive customer retention rates. Further, increase in recurring revenues bodes well. Moreover, robust traction of UltiPro solutions including Xander, UltiPro Workforce Management and UltiPro Benefits Prime is a tailwind. Synergies from PeopleDoc acquisition favor growth prospects. Further, the company’s HCM Suite is gaining recognition from the likes of Gartner, Nucleus Research, to mention a few, which is a positive. Additionally, the company inked an all-cash $11 billion deal by which it will be acquired by an investor group led by Hellman & Friedman. Notably, shares have outperformed the industry in the past year. However, stiff competition in HCM market and higher operating expenses are major concerns.”
Several other equities research analysts have also issued reports on ULTI. ValuEngine lowered The Ultimate Software Group from a strong-buy rating to a buy rating in a research report on Monday, April 1st. BidaskClub lowered The Ultimate Software Group from a hold rating to a sell rating in a research report on Wednesday, April 3rd. JPMorgan Chase & Co. lowered The Ultimate Software Group from an overweight rating to a neutral rating in a research report on Wednesday, March 27th. Royal Bank of Canada lowered The Ultimate Software Group from an outperform rating to a sector perform rating and decreased their target price for the company from $340.00 to $331.50 in a research report on Tuesday, March 26th. Finally, Jefferies Financial Group lowered The Ultimate Software Group from a buy rating to a hold rating and set a $332.54 price objective for the company. in a report on Tuesday, February 5th. Two analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and seven have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $314.49.
The Ultimate Software Group (NASDAQ:ULTI) last announced its earnings results on Monday, February 4th. The technology company reported $1.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $1.37. The Ultimate Software Group had a return on equity of 9.90% and a net margin of 5.71%. The firm had revenue of $304.80 million during the quarter, compared to analyst estimates of $300.60 million. During the same period last year, the firm posted $1.11 EPS. The business’s revenue was up 21.2% compared to the same quarter last year. Equities analysts expect that The Ultimate Software Group will post 2.4 earnings per share for the current fiscal year.
In other The Ultimate Software Group news, CEO Scott Scherr sold 70,809 shares of the firm’s stock in a transaction dated Monday, February 11th. The stock was sold at an average price of $331.68, for a total value of $23,485,929.12. Following the completion of the transaction, the chief executive officer now owns 251,777 shares in the company, valued at approximately $83,509,395.36. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director James A. Fitzpatrick, Jr. sold 531 shares of the firm’s stock in a transaction dated Thursday, February 7th. The stock was sold at an average price of $332.00, for a total value of $176,292.00. Following the completion of the transaction, the director now owns 9,937 shares of the company’s stock, valued at approximately $3,299,084. The disclosure for this sale can be found here. In the last three months, insiders sold 152,522 shares of company stock valued at $50,593,109. 3.00% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of ULTI. Norges Bank bought a new position in The Ultimate Software Group in the 4th quarter worth about $58,132,000. Rehmann Capital Advisory Group boosted its stake in The Ultimate Software Group by 32,899.0% in the 3rd quarter. Rehmann Capital Advisory Group now owns 136,286 shares of the technology company’s stock worth $423,000 after purchasing an additional 135,873 shares during the period. Westfield Capital Management Co. LP boosted its stake in The Ultimate Software Group by 80.7% in the 4th quarter. Westfield Capital Management Co. LP now owns 303,800 shares of the technology company’s stock worth $74,392,000 after purchasing an additional 135,633 shares during the period. American Century Companies Inc. boosted its stake in The Ultimate Software Group by 285.4% in the 4th quarter. American Century Companies Inc. now owns 157,081 shares of the technology company’s stock worth $38,464,000 after purchasing an additional 116,321 shares during the period. Finally, Vanguard Group Inc boosted its position in shares of The Ultimate Software Group by 4.4% during the 3rd quarter. Vanguard Group Inc now owns 2,666,371 shares of the technology company’s stock valued at $859,078,000 after acquiring an additional 112,463 shares during the last quarter. Institutional investors and hedge funds own 94.69% of the company’s stock.
The Ultimate Software Group Company Profile
The Ultimate Software Group, Inc provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada, Europe, the Asia Pacific, and internationally. Its UltiPro software solution delivers the functionality businesses need to manage the employee life cycle from recruitment to retirement.
Further Reading: Earnings Per Share
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