Omnicell (NASDAQ:OMCL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

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Shares of Omnicell, Inc. (NASDAQ:OMCL - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $29.70, but opened at $33.75. Omnicell shares last traded at $29.77, with a volume of 169,855 shares traded.

The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.15. The firm had revenue of $290.56 million during the quarter, compared to analysts' expectations of $275.57 million. Omnicell had a return on equity of 4.27% and a net margin of 2.01%. The company's quarterly revenue was up 5.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.51 EPS.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on OMCL. Benchmark dropped their price objective on Omnicell from $62.00 to $40.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. Wall Street Zen raised Omnicell from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Piper Sandler reissued an "overweight" rating on shares of Omnicell in a report on Friday, May 23rd. Wells Fargo & Company boosted their price objective on Omnicell from $37.00 to $40.00 and gave the stock an "overweight" rating in a research report on Monday, July 21st. Finally, Bank of America boosted their price objective on Omnicell from $30.00 to $34.00 and gave the stock a "neutral" rating in a research report on Friday, May 23rd. Three research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $45.33.

Institutional Investors Weigh In On Omnicell

Several institutional investors and hedge funds have recently made changes to their positions in OMCL. Sei Investments Co. bought a new stake in shares of Omnicell during the 4th quarter valued at about $313,000. KLP Kapitalforvaltning AS bought a new position in Omnicell in the fourth quarter worth approximately $436,000. Vanguard Group Inc. boosted its holdings in Omnicell by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 5,562,165 shares of the company's stock worth $247,628,000 after acquiring an additional 28,573 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in Omnicell in the fourth quarter worth approximately $5,372,000. Finally, Alliancebernstein L.P. boosted its holdings in Omnicell by 4.3% in the fourth quarter. Alliancebernstein L.P. now owns 55,922 shares of the company's stock worth $2,490,000 after acquiring an additional 2,316 shares in the last quarter. Institutional investors own 97.70% of the company's stock.

Omnicell Trading Down 4.0%

The firm has a fifty day simple moving average of $29.27 and a 200-day simple moving average of $33.18. The firm has a market cap of $1.39 billion, a P/E ratio of 59.52, a price-to-earnings-growth ratio of 9.05 and a beta of 0.76. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.42 and a quick ratio of 1.23.

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.