Inovalon Receives a Buy from Wells Fargo

By Carrie Williams

Wells Fargo analyst Jamie Stockton reiterated a Buy rating on Inovalon (NASDAQ: INOV) today. The company’s shares opened today at $14.70, close to its 52-week low of $13.85.

Stockton commented, “We found it interesting that aside from what periods are looked at for risk adjustments, there is also a major transition in the type of data being used from relatively basic text files to more complex medical claims (this transition is expected to be complete by 2020). Initial testing has indicated that health plans could face a 10-35% reduction in risk adjustment payments around Medicare Advantage lives once this transition is fully completed. The prospect of rejected claims data seems to be a major issue, causing panelists to indicate that reporting/analytics around the process will be key (which seems like it plays back into Inovalon’s technology strengths).”

According to, Stockton is a 4-star analyst with an average return of 16.4% and a 60.0% success rate. Stockton covers the Technology sector, focusing on stocks such as Medidata Solutions, Castlight Health, and Quality Systems.

Inovalon has an analyst consensus of Hold, with a price target consensus of $15.20.

Based on Inovalon`s latest earnings report from June 30, the company posted quarterly revenue of $123.8M and quarterly net profit of $16.25M. In comparison, last year the company earned revenue of $117.6M and had a net profit of $26.14M.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of INOV in relation to earlier this year.

Inovalon Holdings, Inc. operates as a technology company that combines advanced cloud-based data analytics and data-driven intervention platforms to achieve meaningful insight and improvement in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape. Its platform drives impact, improving quality and economics for health plans, hospitals, physicians, patients, pharmaceutical companies, and researchers. Inovalon Holdings was founded on September 11, 2014 and is headquartered in Bowie, MD.