Hms Holdings Corp Gets a Buy Rating from Oppenheimer

By Carrie Williams

Oppenheimer analyst Mohan Naidu reiterated a Buy rating on Hms Holdings Corp (NASDAQ: HMSY) today and set a price target of $25. The company’s shares closed last Friday at $19.63.

Naidu observed:

“After spending two days with management last week, we came away more confident that the new member care management vertical (from Essette and Eliza acquisitions) brings tangible benefits to MCOs and risk-bearing providers, particularly given HMSY’s time-series claims and clinical data across all major payers. We see faster cross-sell with commercial accounts than states, given the simpler sales process. We’re hopeful that near-term resolution of 1Q’s commercial implementation issues will lift the stock. Finally, the first look at the Senate health reform bill (out Thursday) suggests longer phase-out for Medicaid expansion funding, but slower inflation growth rates. However, we believe greater financial pressure on states (via block grants and per capita caps) will create greater demand for HMSY services.”

According to, Naidu is a 5-star analyst with an average return of 9.4% and a 58.5% success rate. Naidu covers the Technology sector, focusing on stocks such as Quality Systems, Athenahealth, and Cerner Corp.

Currently, the analyst consensus on Hms Holdings Corp is Moderate Buy and the average price target is $23.17, representing a 18.0% upside.

In a report issued on June 13, Cantor Fitzgerald also initiated coverage with a Buy rating on the stock with a $23 price target.

Based on Hms Holdings Corp’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $114 million and quarterly net profit of $1.44 million. In comparison, last year the company earned revenue of $120 million and had a net profit of $4.56 million.

Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is neutral on the stock. Most recently, in September 2016, William F. Miller, a Director at HMSY sold 9,300 shares for a total of $200,880.

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HMS Holdings Corp. provides revenue enhancement and recovery services. It provides cost containment services to government and private healthcare payers and sponsors. The company operates through its wholly owned subsidiaries, Health Management Systems, Inc. and HealthDataInsights, Inc. Health Management Systems, Inc. provides services to State Medicaid Agencies, Medicaid Managed Care Plans, Pharmacy Benefits Managers, Child Support Agencies, the Veterans Health Administration, the Centers for Medicare & Medicaid Services, and other public programs. HealthDataInsights, Inc. is a technology-enabled healthcare services company that specializes in the identification and recoupment of claim overpayments to providers. The company serves health and human services programs, commercial insurers, including Medicaid managed care, Medicare advantage, and group health plans; the centers for Medicare & Medicaid services and veterans administration facilities. HMS Holdings was founded in 1974 and is headquartered in Irving, TX.,0043JL-E