What Does Shorts Really Think About Allscripts Healthcare Solutions, Inc. (MDRX) Stock?

For the period that ended November 15, 2019, the short interest in Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) stock is on the up. The 1.76% rise could be an indication that investors and traders expect a drop in the share price, often as a result of a drop in the business’ fundamentals. The average brokerage opinion at 2.4 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 22.9 million. That number was 395,191 more shares compared with the total of 22.5 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move down. The average daily volume for MDRX at the November 15th settlement surged to 1,748,544, versus 1,313,019 at the October 31st report. That led days to cover to move at 13.094469, a 23.59% decrease compared to the 17.136892 days to cover recorded at the prior short interest data release.

On December 03, 2019, Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) shares gained 0.76% or 0.08 points to close at $10.56 with a heavy trading volume of 3.438 million shares. It opened the trading session at $10.28, the shares rose to $10.59 and dropped to $10.19, the range by which the price of stock traded the whole day. The company now has a market cap of $1.73 billion and currently has 163.72 million outstanding shares. Allscripts Healthcare Solutions, Inc. (MDRX) stock has plunged -5.63 percent of market value in 21 trading days.

MDRX stock’s trailing 3-year beta is 1.41, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$1.17 share in the trailing 52 weeks. The stock’s value surged 9.54 percent year to date (YTD) compared to a rise of 3.43 percent in 52 week’s period. The firm’s shares are still trading -14.84 percent below its 1-year high of $12.40 and 23.65 percent up from 52-week low of $8.54. The average consensus ranking on the company is 2.4, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Allscripts Healthcare Solutions, Inc. (MDRX) is most likely going to rise 16.1 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $15-month high price target. This represents a whopping 42.05 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $12, which means a return possibility of 13.64 percent in comparison with the closing price of the stock of $10.56 on December 03. The lowest price set for the stock is $9 — just above -14.77 percent from MDRX share price now.

Past records have indicated that shares in Allscripts Healthcare Solutions, Inc. declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MDRX’s Q4 earnings on February 13. Analysts are predicting revenue to suffer decline of -14 percent to $463M in the financial fourth quarter, while EPS will soar by about -5 percent to $0.19 per share. In the last quarter, it earnings of $0.17 per share came worse than the $0.18552, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $538.4M, missing the $565.52M analysts had expected. Earnings are seen to rise by 110.4 percent this year, 11.84 percent in the coming year and the trend continues by 8 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) and observe the pattern. The earliest insider trade happened on 01/18/2019. Farley Brian parted with a total of 6 thousand shares of the firm at average share price of $12. The total amount for the sale was set at $72 thousand. On completing this exchange, the Chief Administrative Officer account balance was 235.67 thousand shares. The stock lost -12 percent from that insider sale. On 12/14/2018, JUDGE JONATHAN, Director, did a purchase of 9.62 thousand shares at a price of $10.38 per share. This increased 99.88 thousand shares to the insider’s fortune and the stock experienced a 1.73 percent rally in price since the news became public. This exchange saw 57.47 thousand shares get into the Director account.

On 12/14/2018, Director Aspinall Mara G. recorded a purchase transaction valued at $10.01 thousand. The purchase at $10.39 a share has added 0.96 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 1.64 percent increase since the transaction reporting date. The company insider is left with 33.68 thousand shares remaining in the account. Poulton Richard J., who works as President at the company, performed a sale of 60 thousand shares in a transaction worth $589.2 thousand. The disposal recorded on 12/13/2018 was priced at $9.82 per share. The stock price soared 7.54 percent since the transaction. Poulton Richard J. currently holds a stake of 437.54 thousand in MDRX stock which is worth $4.62 million after the insider selling.

The stock is lingering around the initial support level of $10.3. After this, the following support is at the zone of $10.05. Up until the time the MDRX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 43.93 on the daily chart, and this may be a cause for concern. In case the price goes below $10.05 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $10.7 level may cause a pull-back move approaching $10.85 mark.

The industry MDRX deals with has an average P/E of 75.3. Its P/B ratio is standing at 1.3X compared to the 5.4 industry average. It is additionally sporting a 1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 3.9. Allscripts Healthcare Solutions, Inc. has a 40.9% gross profit margin, with its operating margin around -0.8%. Alongside this, the company’s net profit margin currently stands at 12%.