According to Zacks, “MAXIMUS' second-quarter fiscal 2019 earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. The company is progressing well with its digital transformation strategies. Digital initiatives are helping it broaden its BPO business and strengthen market position by better serving clients. The company is also expanding its clinical-related services in the federal marketplace. Strategic acquisitions complement MAXIMUS’ long-term organic growth. The company is consistent in rewarding its shareholders through share repurchases and dividend payments. Despite such positives, MAXIMUS's top line and margins remains under pressure due to lower case load volumes on welfare-to-work contracts. Global presence exposes MAXIMUS to foreign currency exchange rate fluctuations. The Health Services Segment could experience seasonality due to transaction-based work. The stock has underperformed its industry in the past six months.”
Separately, ValuEngine cut shares of MAXIMUS from a buy rating to a hold rating in a report on Thursday, February 28th.
Shares of MAXIMUS stock traded up $0.12 on Friday, hitting $71.62. The stock had a trading volume of 184,363 shares, compared to its average volume of 318,372. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.31 and a current ratio of 2.31. MAXIMUS has a one year low of $60.00 and a one year high of $74.18. The stock has a market capitalization of $4.68 billion, a price-to-earnings ratio of 21.06, a P/E/G ratio of 1.97 and a beta of 0.96.
MAXIMUS (NYSE:MMS) last issued its earnings results on Thursday, May 9th. The health services provider reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.91 by $0.05. MAXIMUS had a net margin of 8.76% and a return on equity of 21.19%. The firm had revenue of $736.50 million for the quarter, compared to analysts’ expectations of $757.29 million. During the same quarter last year, the business earned $0.84 earnings per share. The business’s revenue was up 20.2% on a year-over-year basis. As a group, equities research analysts forecast that MAXIMUS will post 3.71 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Wednesday, May 15th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.40%. The ex-dividend date is Tuesday, May 14th. MAXIMUS’s payout ratio is 29.41%.
In related news, Vice Chairman Richard A. Montoni sold 12,000 shares of the firm’s stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $70.69, for a total value of $848,280.00. Following the completion of the sale, the insider now owns 412,874 shares of the company’s stock, valued at $29,186,063.06. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Russell A. Beliveau sold 1,000 shares of the firm’s stock in a transaction on Monday, April 1st. The stock was sold at an average price of $71.40, for a total value of $71,400.00. The disclosure for this sale can be found here. Insiders sold 48,000 shares of company stock valued at $3,403,630 in the last ninety days. 2.20% of the stock is currently owned by insiders.
Hedge funds have recently made changes to their positions in the stock. Quantamental Technologies LLC purchased a new stake in MAXIMUS in the fourth quarter worth $38,000. Mckinley Capital Management LLC Delaware purchased a new stake in MAXIMUS in the first quarter worth $44,000. Omnia Family Wealth LLC purchased a new stake in MAXIMUS in the fourth quarter worth $41,000. Tributary Capital Management LLC purchased a new stake in MAXIMUS in the fourth quarter worth $52,000. Finally, Advisor Group Inc. lifted its stake in MAXIMUS by 47.3% in the fourth quarter. Advisor Group Inc. now owns 869 shares of the health services provider’s stock worth $56,000 after acquiring an additional 279 shares during the period. 95.65% of the stock is owned by institutional investors.
MAXIMUS, Inc provides business process services (BPS) to government health and human services programs worldwide. The company's Health Services segment offers various BPS, appeals, and assessments for state, provincial, and national government programs, including Medicaid, Children's Health Insurance Program, Affordable Care Act, Health Insurance British Columbia, Health Assessment Advisory Service contract, and Preadmission Screening and Resident Reviews.
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