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

Shares of Premier, Inc. (NASDAQ:PINC) traded 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. 249,541 shares were traded during trading, a decline of 78% from the average session 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, topping analysts’ consensus estimates of $0.25 by $0.09. Premier had a return on equity of 10.74% and a net margin of 11.41%. The company had revenue of $248.14 million for the quarter, compared to analyst estimates of $232.85 million. During the same quarter in the prior year, the company posted $0.50 EPS. The business’s revenue for the quarter was down 7.8% compared to the same quarter last year.

Premier Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Saturday, March 15th. Investors of record on Saturday, March 1st will be given a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, February 28th. This represents a $0.84 annualized dividend and a yield of 4.37%. Premier’s dividend payout ratio (DPR) is presently 61.77%.

Analyst Upgrades and Downgrades

PINC has been the subject of a number of research analyst reports. Barclays upped their price objective on shares of Premier from $20.00 to $24.00 and gave the company an “equal weight” rating in a research note on Wednesday, November 6th. Robert W. Baird cut their price target on shares of Premier from $20.00 to $19.00 and set a “neutral” rating on the stock in a research note on Wednesday. Piper Sandler lowered their price objective on shares of Premier from $21.00 to $19.00 and set a “neutral” rating for the company in a research note on Wednesday. StockNews.com lowered Premier from a “buy” rating to a “hold” rating in a research report on Tuesday, November 5th. Finally, Canaccord Genuity Group lowered their price target on Premier from $21.00 to $19.00 and set a “hold” rating for the company in a research report on Wednesday. Ten equities research analysts have rated the stock with a hold rating, According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $20.50.

Insider Transactions at Premier

In related news, CEO Michael J. Alkire sold 17,415 shares of the business’s stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $23.16, for a total value of $403,331.40. Following the transaction, the chief executive officer now owns 520,728 shares in the company, valued at approximately $12,060,060.48. The trade was a 3.24 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Helen M. Boudreau sold 2,500 shares of the firm’s stock in a transaction that occurred 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 sale, the director now owns 20,668 shares of the company’s stock, valued at approximately $442,708.56. This trade represents a 10.79 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 59,425 shares of company stock valued at $1,320,242. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On Premier

A number of hedge funds have recently added to or reduced their stakes in the business. Brooklyn Investment Group raised its position in shares of Premier by 61,750.0% during the 4th quarter. Brooklyn Investment Group now owns 1,237 shares of the company’s stock worth $26,000 after purchasing an additional 1,235 shares during the period. GAMMA Investing LLC grew its stake in Premier by 137.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,347 shares of the company’s stock worth $27,000 after buying an additional 780 shares during the last quarter. SRS Capital Advisors Inc. increased its position in Premier by 157.8% in the fourth quarter. SRS Capital Advisors Inc. now owns 1,284 shares of the company’s stock worth $27,000 after buying an additional 786 shares during the period. Keystone Financial Group Inc. bought a new stake in Premier in the fourth quarter valued at $37,000. Finally, Wilmington Savings Fund Society FSB bought a new stake in Premier in the third quarter valued at $39,000. Institutional investors and hedge funds own 74.41% of the company’s stock.

Premier Price Performance

The firm’s fifty day moving average price is $21.76 and its 200-day moving average price is $20.94. The company has a market cap of $1.85 billion, a price-to-earnings ratio of 14.13 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.