Zacks Investment Research Downgrades R1 RCM (NASDAQ:RCM) to Sell

R1 RCM (NASDAQ:RCM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday, Zacks.com reports.

According to Zacks, “R1 RCM Inc. offers financial services for the health care industries. The Company provides revenue cycle management and physician advisory services, as well as transforms and manages the commercial infrastructure of health care organizations. R1 RCM Inc., formerly known as Accretive Health, Inc., is headquartered in Chicago, Illinois. “

A number of other research firms also recently weighed in on RCM. KeyCorp raised their target price on shares of R1 RCM from $12.00 to $15.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Royal Bank of Canada assumed coverage on shares of R1 RCM in a research report on Monday, April 20th. They issued an “outperform” rating and a $12.00 target price for the company. BidaskClub raised shares of R1 RCM from a “hold” rating to a “buy” rating in a research report on Wednesday, July 15th. ValuEngine downgraded shares of R1 RCM from a “buy” rating to a “hold” rating in a research report on Wednesday. Finally, SVB Leerink began coverage on shares of R1 RCM in a research note on Monday, April 13th. They issued a “market perform” rating and a $10.00 price target for the company. One investment analyst has rated the stock with a sell rating, two have given a hold rating and six have given a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $13.43.

R1 RCM stock traded down $0.21 during mid-day trading on Friday, reaching $13.67. The company’s stock had a trading volume of 675,446 shares, compared to its average volume of 828,263. The company has a market capitalization of $1.57 billion, a price-to-earnings ratio of -683.16, a price-to-earnings-growth ratio of 11.30 and a beta of 0.53. R1 RCM has a 12 month low of $7.12 and a 12 month high of $13.99. The business’s 50 day simple moving average is $12.21 and its 200 day simple moving average is $11.37. The company has a debt-to-equity ratio of 14.63, a quick ratio of 1.18 and a current ratio of 1.18.

R1 RCM (NASDAQ:RCM) last released its earnings results on Tuesday, May 5th. The healthcare provider reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.03). The business had revenue of $320.50 million during the quarter, compared to the consensus estimate of $318.76 million. R1 RCM had a net margin of 2.44% and a return on equity of 174.42%. The firm’s revenue for the quarter was up 16.1% on a year-over-year basis. During the same period last year, the business posted ($0.04) EPS. As a group, sell-side analysts expect that R1 RCM will post 0.11 EPS for the current year.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Advisor Group Holdings Inc. acquired a new stake in shares of R1 RCM during the 1st quarter worth about $31,000. Acadian Asset Management LLC acquired a new stake in shares of R1 RCM during the 1st quarter worth about $33,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in shares of R1 RCM by 72.4% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 10,030 shares of the healthcare provider’s stock worth $91,000 after buying an additional 4,213 shares during the last quarter. Mackay Shields LLC acquired a new stake in shares of R1 RCM during the 1st quarter worth about $118,000. Finally, Aperio Group LLC acquired a new stake in shares of R1 RCM during the 1st quarter worth about $119,000. Institutional investors own 74.13% of the company’s stock.

R1 RCM Company Profile

R1 RCM Inc provides revenue cycle management (RCM) for healthcare providers in the United States. It offers end-to-end RCM services to manage their revenue cycle operations, which encompass patient registration, insurance and benefit verification, medical treatment documentation and coding, and bill preparation and collection from patients and payers.

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