Omnicell (NASDAQ:OMCL) Shares Gap Down Following Weak Earnings

Omnicell, Inc. (NASDAQ:OMCL)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $44.38, but opened at $42.07. Omnicell shares last traded at $44.83, with a volume of 50,800 shares changing hands.

The company reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.57 by ($0.12). Omnicell had a negative net margin of 1.66% and a positive return on equity of 2.55%.

Analyst Ratings Changes

OMCL has been the subject of several research analyst reports. StockNews.com lowered Omnicell from a “buy” rating to a “hold” rating in a report on Tuesday, December 10th. Wells Fargo & Company cut their price target on Omnicell from $49.00 to $40.00 and set an “equal weight” rating for the company in a research note on Monday, January 13th. JPMorgan Chase & Co. increased their price objective on shares of Omnicell from $37.00 to $44.00 and gave the stock a “neutral” rating in a research note on Thursday, November 21st. Bank of America cut their target price on shares of Omnicell from $54.00 to $46.00 and set a “neutral” rating for the company in a research report on Monday, January 6th. Finally, Benchmark reiterated a “buy” rating and issued a $62.00 price target on shares of Omnicell in a research report on Tuesday. Five analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to MarketBeat.com, Omnicell has a consensus rating of “Hold” and a consensus price target of $52.33.

Insider Activity at Omnicell

In other news, Director Mark W. Parrish sold 12,000 shares of the business’s stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $47.30, for a total value of $567,600.00. Following the transaction, the director now directly owns 58,427 shares in the company, valued at $2,763,597.10. The trade was a 17.04 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.64% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Victory Capital Management Inc. grew its stake in shares of Omnicell by 11,982.3% in the 3rd quarter. Victory Capital Management Inc. now owns 1,148,426 shares of the company’s stock worth $50,071,000 after buying an additional 1,138,921 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. bought a new position in shares of Omnicell in the 3rd quarter valued at about $32,721,000. Connor Clark & Lunn Investment Management Ltd. grew its position in Omnicell by 750.5% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 294,037 shares of the company’s stock worth $12,820,000 after acquiring an additional 259,463 shares in the last quarter. ArrowMark Colorado Holdings LLC increased its stake in Omnicell by 27.1% during the third quarter. ArrowMark Colorado Holdings LLC now owns 1,140,873 shares of the company’s stock worth $49,742,000 after acquiring an additional 243,353 shares during the last quarter. Finally, Pier Capital LLC purchased a new stake in Omnicell during the third quarter valued at approximately $5,859,000. Institutional investors own 97.70% of the company’s stock.

Omnicell Trading Down 11.2 %

The firm has a market capitalization of $1.83 billion, a P/E ratio of -101.10, a price-to-earnings-growth ratio of 30.78 and a beta of 0.78. The firm has a 50 day moving average price of $44.52 and a 200-day moving average price of $43.23.

Omnicell Company Profile

Omnicell, Inc, together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications.