NIC (EGOV) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of NIC (NASDAQ:EGOV) from a buy rating to a hold rating in a research note released on Tuesday morning.

According to Zacks, “NIC Inc. provides digital government services that enable governments to use technology to provide various services to businesses. Its Outsourced Portals business enters into long-term contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. These portals consist of Websites and applications that enable businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Its portal service offerings include motor vehicle driver history record retrieval; hunting/ fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. “

Several other analysts have also issued reports on EGOV. Barrington Research restated a hold rating on shares of NIC in a research report on Monday, November 5th. TheStreet upgraded shares of NIC from a c+ rating to a b- rating in a research report on Wednesday, August 22nd. Loop Capital set a $15.00 price target on shares of NIC and gave the stock a hold rating in a research report on Monday, November 5th. BidaskClub upgraded shares of NIC from a hold rating to a buy rating in a research report on Friday, August 3rd. Finally, Stephens restated a hold rating and issued a $18.00 price target on shares of NIC in a research report on Thursday, August 2nd. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus target price of $16.00.

NASDAQ EGOV remained flat at $$13.81 during midday trading on Tuesday. 248,995 shares of the company’s stock traded hands, compared to its average volume of 431,715. The firm has a market cap of $927.98 million, a price-to-earnings ratio of 17.94, a price-to-earnings-growth ratio of 1.65 and a beta of 0.71. NIC has a 52 week low of $12.65 and a 52 week high of $18.90.

NIC (NASDAQ:EGOV) last posted its quarterly earnings results on Thursday, November 1st. The software maker reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.07. The company had revenue of $87.03 million for the quarter, compared to analyst estimates of $83.06 million. NIC had a net margin of 16.94% and a return on equity of 32.21%. The business’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period last year, the business posted $0.21 EPS. Equities research analysts forecast that NIC will post 0.85 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 18th. Stockholders of record on Tuesday, December 4th will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 2.32%. The ex-dividend date of this dividend is Monday, December 3rd. NIC’s payout ratio is 41.56%.

Large investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC bought a new position in shares of NIC during the 2nd quarter worth about $158,000. Amalgamated Bank bought a new position in shares of NIC during the 2nd quarter worth about $163,000. Xact Kapitalforvaltning AB bought a new position in shares of NIC during the 1st quarter worth about $168,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of NIC during the 2nd quarter worth about $189,000. Finally, GW Henssler & Associates Ltd. bought a new position in shares of NIC during the 2nd quarter worth about $191,000. 87.80% of the stock is owned by institutional investors.

NIC Company Profile

NIC Inc, together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The company's outsourced portal business enters into long-term contracts with state and local governments to design, build, and operate Internet-based and enterprise-wide portals on their behalf.

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