Premier (NASDAQ:PINC) Shares Down 8.8% After Earnings Miss

Shares of Premier, Inc. (NASDAQ:PINC) dropped 8.8% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $20.44 and last traded at $20.44. Approximately 249,541 shares traded hands 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 $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.04). Premier had a net margin of 11.41% and a return on equity of 10.74%.

Premier Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Saturday, March 15th. Stockholders of record on Saturday, March 1st will be paid a $0.21 dividend. The ex-dividend date is Friday, February 28th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 4.11%. Premier’s payout ratio is 61.77%.

Wall Street Analysts Forecast Growth

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

Insider Transactions at Premier

In related news, COO Leigh Anderson sold 20,000 shares of the stock in a transaction on Friday, December 20th. The stock was 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 directly owns 111,707 shares in the company, valued at approximately $2,444,149.16. This represents a 15.19 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Helen M. Boudreau sold 2,500 shares of the stock in a transaction on Monday, January 6th. The shares were sold at an average price of $21.42, for a total value of $53,550.00. Following the completion of the sale, the director now owns 20,668 shares of the company’s stock, valued at approximately $442,708.56. This represents a 10.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 59,425 shares of company stock worth $1,320,242 in the last ninety days. Insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On Premier

Several large investors have recently modified their holdings of the stock. Venturi Wealth Management LLC raised its stake in Premier by 619.9% during the fourth quarter. Venturi Wealth Management LLC now owns 6,414 shares of the company’s stock worth $136,000 after acquiring an additional 5,523 shares during the period. Sanctuary Advisors LLC acquired a new stake in shares of Premier in the fourth quarter valued at approximately $353,000. Van ECK Associates Corp increased its stake in shares of Premier by 28.0% in the fourth 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 during the period. Summit Trail Advisors LLC acquired a new stake in shares of Premier in the fourth quarter valued at approximately $668,000. Finally, Entropy Technologies LP acquired a new stake in shares of Premier in the fourth quarter valued at approximately $356,000. Institutional investors own 74.41% of the company’s stock.

Premier Stock Down 8.8 %

The firm’s 50 day simple moving average is $21.91 and its 200 day simple moving average is $20.96. The company has a market cap of $1.96 billion, a price-to-earnings ratio of 15.08 and a beta of 0.43.

About Premier

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.