Zacks Investment Research Lowers MEDNAX (MD) to Sell

Zacks Investment Research cut shares of MEDNAX (NYSE:MD) from a hold rating to a sell rating in a research note issued to investors on Wednesday.

According to Zacks, “Mednax’s shares have underperformed its industry in a year’s time. The Zacks Consensus Estimate for its current-year earnings has moved down 0.8%  in the last 30 days. Escalating expenses remain a headwind for the company.  The rate of increase in expenses has surpassed revenue growth in the past two years and the same trend was seen in the first nine months of 2018.  Anesthesia mix shift to Medicare is another challenge to the company. However, the company is well-poised for growth on the back of a consistent rise in revenues. Mednax’s prudent acquisitions poise the company for long-term growth. It closed buyouts of five physician group practices in the first nine months of 2018.”

Several other research analysts have also recently issued reports on MD. Credit Suisse Group decreased their price objective on shares of MEDNAX from $55.00 to $50.00 and set an outperform rating for the company in a report on Tuesday, November 6th. Robert W. Baird decreased their price objective on shares of MEDNAX from $48.00 to $40.00 and set a neutral rating for the company in a report on Friday, November 2nd. Bank of America upgraded shares of MEDNAX from an underperform rating to a neutral rating and decreased their price objective for the company from $60.00 to $50.00 in a report on Tuesday, September 18th. UBS Group assumed coverage on shares of MEDNAX in a report on Friday, November 16th. They issued a sell rating and a $37.00 price objective for the company. Finally, BMO Capital Markets decreased their price objective on shares of MEDNAX from $48.00 to $43.00 and set a market perform rating for the company in a report on Friday, November 2nd. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the stock. MEDNAX has an average rating of Hold and a consensus target price of $51.20.

NYSE MD traded down $0.36 on Wednesday, hitting $39.46. The stock had a trading volume of 3,654 shares, compared to its average volume of 850,463. MEDNAX has a one year low of $37.26 and a one year high of $63.04. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 0.67. The stock has a market cap of $3.56 billion, a price-to-earnings ratio of 12.48, a price-to-earnings-growth ratio of 1.08 and a beta of 0.32.

MEDNAX (NYSE:MD) last posted its quarterly earnings data on Thursday, November 1st. The company reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($0.03). The company had revenue of $896.60 million during the quarter, compared to the consensus estimate of $908.15 million. MEDNAX had a net margin of 9.50% and a return on equity of 10.45%. The company’s revenue was up 3.2% on a year-over-year basis. During the same quarter last year, the business earned $0.87 earnings per share. As a group, equities research analysts expect that MEDNAX will post 3.51 earnings per share for the current fiscal year.

Large investors have recently modified their holdings of the stock. Point72 Hong Kong Ltd purchased a new stake in shares of MEDNAX in the 2nd quarter valued at approximately $172,000. Gideon Capital Advisors Inc. purchased a new stake in shares of MEDNAX in the 3rd quarter valued at approximately $203,000. PEAK6 Investments LLC purchased a new stake in shares of MEDNAX in the 3rd quarter valued at approximately $246,000. NumerixS Investment Technologies Inc lifted its position in shares of MEDNAX by 147.8% in the 2nd quarter. NumerixS Investment Technologies Inc now owns 5,700 shares of the company’s stock valued at $247,000 after acquiring an additional 3,400 shares in the last quarter. Finally, Iberiabank Corp purchased a new stake in shares of MEDNAX in the 3rd quarter valued at approximately $289,000. Hedge funds and other institutional investors own 98.16% of the company’s stock.

MEDNAX Company Profile

MEDNAX, Inc, together with its subsidiaries, provides newborn, anesthesia, maternal-fetal, radiology, pediatric cardiology, and other pediatric subspecialties physician services in the United States and Puerto Rico. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians; anesthesia and anesthesia subspecialty care; and acute and chronic pain management services.

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