Premier (NASDAQ:PINC) Trading Down 8.8% Following Weak Earnings

Shares of Premier, Inc. (NASDAQ:PINC) were down 8.8% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $20.44 and last traded at $20.44. Approximately 249,541 shares were traded during trading, a decline of 78% from the average daily volume of 1,124,055 shares. The stock had previously closed at $22.40.

The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.25 by $0.09. The company had revenue of $248.14 million during the quarter, compared to the consensus estimate of $232.85 million. Premier had a return on equity of 10.74% and a net margin of 11.41%. Premier’s revenue was down 7.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.50 EPS.

Premier Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Saturday, March 15th. Shareholders of record on Saturday, March 1st will be paid a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 4.40%. The ex-dividend date is Friday, February 28th. Premier’s payout ratio is 61.77%.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Robert W. Baird upped their price objective on shares of Premier from $19.00 to $20.00 and gave the company a “neutral” rating in a research note on Wednesday, November 6th. Barclays increased their price target on shares of Premier from $20.00 to $24.00 and gave the stock an “equal weight” rating in a research note on Wednesday, November 6th. StockNews.com cut shares of Premier from a “buy” rating to a “hold” rating in a research note on Tuesday, November 5th. Finally, Canaccord Genuity Group increased their target price on Premier from $19.00 to $21.00 and gave the stock a “hold” rating in a research report on Wednesday, November 6th. Ten equities research analysts have rated the stock with a hold rating, According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $21.36.

Insider Activity

In other Premier news, COO Leigh Anderson sold 20,000 shares of the stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $21.88, for a total value of $437,600.00. Following the completion of the sale, the chief operating officer now owns 111,707 shares of the company’s stock, valued at $2,444,149.16. This trade represents a 15.19 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Helen M. Boudreau sold 2,500 shares of Premier stock in a transaction that occurred on Monday, January 6th. The shares were sold at an average price of $21.42, for a total transaction of $53,550.00. Following the sale, the director now owns 20,668 shares in the company, valued at $442,708.56. This represents a 10.79 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 59,425 shares of company stock valued at $1,320,242. Company insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On Premier

A number of large investors have recently added to or reduced their stakes in the company. Brooklyn Investment Group boosted its position in Premier by 61,750.0% in the 4th quarter. Brooklyn Investment Group now owns 1,237 shares of the company’s stock valued at $26,000 after buying an additional 1,235 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Premier by 137.6% in the third quarter. GAMMA Investing LLC now owns 1,347 shares of the company’s stock worth $27,000 after acquiring an additional 780 shares in the last quarter. Keystone Financial Group Inc. acquired a new position in shares of Premier in the fourth quarter worth about $37,000. Wilmington Savings Fund Society FSB purchased a new position in Premier in the third quarter valued at about $39,000. Finally, Van ECK Associates Corp grew its stake in Premier by 28.0% during the 4th quarter. Van ECK Associates Corp now owns 2,041 shares of the company’s stock valued at $43,000 after purchasing an additional 446 shares in the last quarter. 74.41% of the stock is owned by institutional investors and hedge funds.

Premier Stock Performance

The firm has a fifty day simple moving average of $21.83 and a 200-day simple moving average of $20.96. The company has a market capitalization of $1.84 billion, a PE ratio of 14.05 and a beta of 0.43.

Premier Company Profile

Premier, Inc, together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions.