Benchmark Reaffirms Hold Rating for Cross Country Healthcare (NASDAQ:CCRN)

Key Points

• Benchmark reaffirmed a Hold rating on Cross Country Healthcare, while the broader analyst consensus remains cautious with an average rating of Hold and a target price around $12.31.
• The stock is trading near the deal price after Cross Country agreed to be acquired by Knox Lane for $13.25 per share in an all-cash transaction valued at about $437 million, which has driven recent trading volatility.
• Recent earnings were slightly better than expected, with Q1 EPS of a $0.03 loss versus a $0.05 loss expected and revenue of $241.1 million above estimates, suggesting underlying business performance held up modestly.

Cross Country Healthcare (NASDAQ:CCRN - Get Free Report)'s stock had its "hold" rating reaffirmed by stock analysts at Benchmark in a research report issued on Friday,Benzinga reports.

Other equities analysts also recently issued research reports about the stock. Citigroup downgraded shares of Cross Country Healthcare from a "market outperform" rating to a "market perform" rating in a report on Thursday. Cross Research set a $14.00 price objective on shares of Cross Country Healthcare in a report on Thursday, March 5th. Wedbush downgraded shares of Cross Country Healthcare from an "outperform" rating to a "hold" rating and dropped their price objective for the stock from $15.00 to $13.25 in a report on Thursday. Zacks Research raised shares of Cross Country Healthcare from a "strong sell" rating to a "hold" rating in a report on Monday, January 19th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Cross Country Healthcare in a report on Friday, March 27th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $12.31.

Cross Country Healthcare Trading Up 0.6%

NASDAQ:CCRN traded up $0.08 on Friday, reaching $13.17. 1,510,004 shares of the stock traded hands, compared to its average volume of 569,366. The company has a market capitalization of $423.91 million, a price-to-earnings ratio of -4.49, a PEG ratio of 10.64 and a beta of 0.35. Cross Country Healthcare has a 12 month low of $7.43 and a 12 month high of $14.99. The company's fifty day simple moving average is $9.69 and its 200 day simple moving average is $9.66.

Cross Country Healthcare (NASDAQ:CCRN - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The business services provider reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.02. The firm had revenue of $241.06 million for the quarter, compared to the consensus estimate of $236.84 million. Cross Country Healthcare had a negative net margin of 9.00% and a positive return on equity of 0.13%. Equities analysts anticipate that Cross Country Healthcare will post 0.09 EPS for the current fiscal year.

Hedge Funds Weigh In On Cross Country Healthcare

Large investors have recently added to or reduced their stakes in the company. BNP Paribas Financial Markets lifted its holdings in Cross Country Healthcare by 50.0% during the second quarter. BNP Paribas Financial Markets now owns 3,424 shares of the business services provider's stock valued at $45,000 after purchasing an additional 1,142 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in Cross Country Healthcare during the fourth quarter valued at approximately $46,000. Tower Research Capital LLC TRC lifted its holdings in Cross Country Healthcare by 422.0% during the second quarter. Tower Research Capital LLC TRC now owns 3,586 shares of the business services provider's stock valued at $47,000 after purchasing an additional 2,899 shares in the last quarter. Graham Capital Management L.P. purchased a new position in Cross Country Healthcare during the fourth quarter valued at approximately $83,000. Finally, AXQ Capital LP purchased a new position in Cross Country Healthcare during the fourth quarter valued at approximately $109,000. Hedge funds and other institutional investors own 96.03% of the company's stock.

Key Stories Impacting Cross Country Healthcare

Here are the key news stories impacting Cross Country Healthcare this week:

• Positive Sentiment: Definitive buyout: Cross Country agreed to be acquired by private equity firm Knox Lane for $13.25 per share in an all-cash transaction valued at about $437 million — this puts a concrete floor on the stock near the deal price and drove the intraday rally. BusinessWire Deal Announcement
• Positive Sentiment: Q1 results modestly beat expectations: Cross Country reported a $0.03 loss per share vs. a $0.05 expected loss and revenue of $241.1M vs. $236.8M consensus — the beats support near-term business stability and likely helped calm investor reaction to the privatization. Zacks Q1 Coverage
• Neutral Sentiment: Volatility and trading halt: Trading was briefly halted after the buyout news and volume has spiked as investors reprice the stock to the $13.25 offer; that increases short-term volatility but is typical around M&A announcements. Investing.com Coverage of Surge
• Negative Sentiment: Analyst reaction: Wedbush downgraded CCRN from “outperform” to “hold” and cut its price target to $13.25 — effectively pricing the stock at the deal value and signaling limited upside unless a higher bidder emerges or the deal terms change. MSN / Wedbush Note
• Negative Sentiment: Investor view urging to sell: Commentary pieces (e.g., Seeking Alpha) interpret the merger as a shareholder exit opportunity and recommend locking in profits now, which could add selling pressure into the offer level. Seeking Alpha Opinion

About Cross Country Healthcare

Cross Country Healthcare, Inc, headquartered in Boca Raton, Florida, is a leading provider of healthcare workforce solutions in the United States. The company specializes in the recruitment, placement and management of nursing and allied health professionals on both a travel and permanent basis. Through its integrated platform, Cross Country Healthcare serves hospitals, health systems, and long-term care facilities by matching qualified clinical talent with patient care needs across diverse care settings.

The company's core service offerings include travel nurse and allied health staffing, per diem staffing, permanent placement services, and managed services programs.

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