Premier (NASDAQ:PINC) Hits New 1-Year High Following Strong Earnings

Shares of Premier, Inc. (NASDAQ:PINC) hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $23.43 and last traded at $23.29, with a volume of 93201 shares changing hands. The stock had previously closed at $22.67.

The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.25 by $0.09. The company had revenue of $248.14 million for the quarter, compared to analyst estimates of $232.85 million. Premier had a net margin of 8.88% and a return on equity of 11.69%. The firm’s quarterly revenue was down 7.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.50 EPS.

Premier Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Sunday, December 15th. Investors of record on Sunday, December 1st will be issued a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 3.64%. The ex-dividend date of this dividend is Friday, November 29th. Premier’s dividend payout ratio is presently 81.55%.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Barclays boosted their price objective on Premier from $20.00 to $24.00 and gave the company an “equal weight” rating in a research report on Wednesday. Canaccord Genuity Group upped their price target on shares of Premier from $19.00 to $21.00 and gave the company a “hold” rating in a report on Wednesday. StockNews.com lowered shares of Premier from a “buy” rating to a “hold” rating in a report on Tuesday. Benchmark downgraded shares of Premier from a “buy” rating to a “hold” rating in a research note on Monday, August 26th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Premier from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Monday, September 9th. 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 price target of $22.44.

Insiders Place Their Bets

In related news, CEO Michael J. Alkire sold 1,264 shares of Premier stock in a transaction that occurred on Monday, September 30th. The stock was sold at an average price of $20.01, for a total transaction of $25,292.64. Following the sale, the chief executive officer now directly owns 558,143 shares in the company, valued at $11,168,441.43. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, COO Leigh Anderson sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $19.62, for a total value of $392,400.00. Following the sale, the chief operating officer now owns 131,707 shares in the company, valued at $2,584,091.34. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Michael J. Alkire sold 1,264 shares of Premier stock in a transaction on Monday, September 30th. The shares were sold at an average price of $20.01, for a total value of $25,292.64. Following the transaction, the chief executive officer now owns 558,143 shares of the company’s stock, valued at $11,168,441.43. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 135,441 shares of company stock worth $2,738,548 over the last three months. Company insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On Premier

Several institutional investors and hedge funds have recently modified their holdings of the stock. Pacer Advisors Inc. increased its stake in Premier by 384.3% during the 2nd quarter. Pacer Advisors Inc. now owns 6,311,089 shares of the company’s stock valued at $117,828,000 after purchasing an additional 5,007,851 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Premier by 14.9% in the 2nd quarter. Dimensional Fund Advisors LP now owns 5,951,043 shares of the company’s stock valued at $111,105,000 after acquiring an additional 773,207 shares in the last quarter. American Century Companies Inc. boosted its stake in Premier by 60.4% during the 2nd quarter. American Century Companies Inc. now owns 2,051,578 shares of the company’s stock valued at $38,303,000 after purchasing an additional 772,392 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Premier by 6.6% in the 2nd quarter. AQR Capital Management LLC now owns 1,590,926 shares of the company’s stock worth $29,241,000 after purchasing an additional 98,544 shares in the last quarter. Finally, Invenomic Capital Management LP increased its holdings in shares of Premier by 37.7% in the 1st quarter. Invenomic Capital Management LP now owns 1,027,437 shares of the company’s stock worth $22,706,000 after purchasing an additional 281,131 shares in the last quarter. 74.41% of the stock is currently owned by institutional investors.

Premier Price Performance

The firm has a 50-day moving average of $20.08 and a 200 day moving average of $19.72. The company has a market capitalization of $2.31 billion, a PE ratio of 22.41, a PEG ratio of 9.43 and a beta of 0.40.

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.