Inovalon Receives an Outperform from William Blair

By George MacDonald

William Blair analyst Ryan Daniels maintained an Outperform rating on Inovalon (NASDAQ: INOV) yesterday. The company’s shares closed yesterday at $17.32, close to its 52-week low of $16.52.

Daniels said, “Revising Estimates Following Further Disclosure on Avalere Acquisition We are making modest updates to our estimates, following the disclosure of detailed historical financials for recently acquired Avalere Health, Inc. Last quarter, management commented that Avalere represented a 140-basis-point headwind to the third-quarter EBITDA margins (or a loss of roughly $250,000) and would represent an additional headwind of 200 basis points for the fourth quarter. We believed this was a temporary development related to a focus on joint product development work and that Avalere was historically profitable. However, following disclosure of Avalere’s historical financial statements, we recognize that Avalere was slightly unprofitable in 2014 and for the first six month of 2015. Therefore, we are adjusting are estimates to account for a higher level of operating expenses for Avalere going forward.”

Inovalon has an analyst consensus of Moderate Buy.

The company has a one year high of $33.75 and a one year low of $16.52. Currently, Inovalon has an average volume of 438.5k.

Unlike William Blair`s latest rating, based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2015, Christopher Greiner, a the Chief Product Officer & COO of INOV sold 249,626 shares for a total of $2,646,036.

According to, Daniels is a 1-star analyst with an average return of -3.8% and a 47.1% success rate. Daniels covers the technology sector, focusing on stocks such as Greenway Medical Technologies, Athenahealth, and HealthStream.

Inovalon Holdings Inc is a technology company. It combines cloud-based data analytics & data-driven intervention platforms to achieve meaningful insight & improvement in clinical and quality outcomes, utilization, and financial performance in healthcare.