Granahan Investment Management LLC Invests $5.83 Million in RadNet, Inc. $RDNT

Key Points

• Granahan Investment Management bought a new stake in RadNet during the first quarter, acquiring 104,282 shares worth about $5.83 million. The filing shows the position represented roughly 0.13% of the company.
• RadNet reported mixed quarterly results, with revenue of $575.63 million beating expectations but EPS of ($0.28) missing analyst estimates. Revenue was still up 22.1% year over year.
• Sentiment around the stock remains mixed: some analysts downgraded RadNet, while Barclays trimmed its price target to $65 but kept an overweight rating. Meanwhile, insiders sold shares recently, even as institutional investors own 77.9% of the stock.

Granahan Investment Management LLC purchased a new stake in RadNet, Inc. (NASDAQ:RDNT - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm purchased 104,282 shares of the medical research company's stock, valued at approximately $5,828,000. Granahan Investment Management LLC owned approximately 0.13% of RadNet as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Geneos Wealth Management Inc. purchased a new position in RadNet in the fourth quarter valued at about $25,000. Allworth Financial LP lifted its position in shares of RadNet by 346.6% during the 3rd quarter. Allworth Financial LP now owns 393 shares of the medical research company's stock valued at $30,000 after acquiring an additional 305 shares during the period. Danske Bank A S purchased a new stake in shares of RadNet during the 3rd quarter worth approximately $30,000. Eurizon Capital SGR S.p.A. purchased a new stake in shares of RadNet during the 4th quarter worth approximately $36,000. Finally, Harbour Investments Inc. acquired a new stake in shares of RadNet in the 4th quarter worth approximately $42,000. Hedge funds and other institutional investors own 77.90% of the company's stock.

RadNet Trading Up 1.0%

RDNT stock opened at $61.57 on Friday. RadNet, Inc. has a 52 week low of $50.76 and a 52 week high of $85.84. The company has a market cap of $4.84 billion, a price-to-earnings ratio of -342.04 and a beta of 1.37. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.79. The business has a fifty day simple moving average of $58.66 and a 200-day simple moving average of $62.39.

RadNet (NASDAQ:RDNT - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The medical research company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.14). The firm had revenue of $575.63 million for the quarter, compared to analysts' expectations of $557.93 million. RadNet had a negative net margin of 0.66% and a positive return on equity of 2.77%. RadNet's revenue was up 22.1% on a year-over-year basis. During the same period last year, the firm posted ($0.50) EPS. On average, equities research analysts expect that RadNet, Inc. will post 0.54 EPS for the current year.

Insider Buying and Selling

In related news, Director David L. Swartz sold 2,699 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $53.89, for a total value of $145,449.11. Following the transaction, the director owned 177,013 shares in the company, valued at approximately $9,539,230.57. This trade represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Cornelis Wesdorp sold 4,750 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $58.11, for a total transaction of $276,022.50. Following the sale, the chief executive officer owned 69,075 shares of the company's stock, valued at approximately $4,013,948.25. This represents a 6.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 5.60% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RDNT. Zacks Research downgraded RadNet from a "hold" rating to a "strong sell" rating in a research note on Monday, July 13th. Weiss Ratings downgraded RadNet from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, May 12th. Finally, Barclays decreased their price objective on shares of RadNet from $70.00 to $65.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $87.43.

RadNet Company Profile

RadNet, Inc is a leading independent provider of outpatient diagnostic imaging services in the United States. Through a nationwide network of fixed-site imaging centers and affiliated joint-venture locations, the company delivers a comprehensive suite of radiology services including MRI, CT, PET/CT, ultrasound, X-ray, mammography, bone densitometry, nuclear medicine and interventional radiology procedures. RadNet also offers teleradiology and imaging management solutions to physician practices, hospitals and healthcare systems.

Founded in 1981 and headquartered in Los Angeles, RadNet has expanded its footprint organically and through strategic acquisitions.

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