William Blair Maintains an Outperform Rating on Inovalon

By George MacDonald

In a report released today, Ryan Daniels from William Blair maintained an Outperform rating on Inovalon (NASDAQ: INOV). The company’s shares opened today at $21.11.

Daniels observed, “Announces Acquisition of Avalere; Accelerated Expansion Into Pharma and Life Sciences Industry Monday evening, August 24, after the markets closed, Inovalon Holdings announced its intent to acquire privately held Avalere Health, Inc. for $140 million—comprising $135 million in cash and $5 million in restricted stock. The transaction is expected to close on September 1, 2015, and should be mildly accretive (a penny or less) to Inovalon’s 2015 adjusted EPS. The purchase price will be funded with Inovalon’s current cash balance, which stood at roughly $800 million at the end of second quarter 2015.”

Inovalon has an analyst consensus of Moderate Buy, with a price target consensus of $32.

Based on Inovalon`s latest earnings report from June 30, the company posted quarterly revenue of $117.6M and quarterly net profit of $26.14M. In comparison, last year the company earned revenue of $64.53M and had a net profit of $5.74M.

Unlike William Blair`s latest rating, based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is neutral on the stock. Earlier this month, Lee D. Roberts, a a Director at INOV bought 14,745 shares for a total of $116,338.

Daniels is a 1-star analyst with an average return of -7.9% and a 44.4% 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.