Pediatrix Medical Group (NYSE:MD) Shares Gap Up on Earnings Beat

Key Points

• Pediatrix Medical Group's share price increased from a prior close of $12.30 to an opening value of $13.57 before last trading at $13.27.
• Analysts have mixed reviews for the stock, with a new price target set at $20.00 by Macquarie, while Truist and UBS adjusted their targets down to $16.00.
• The company reported an earnings per share (EPS) of $0.33, surpassing expectations, although revenue decreased by 7.4% year-over-year.

Pediatrix Medical Group, Inc. (NYSE:MD - Get Free Report) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.30, but opened at $13.57. Pediatrix Medical Group shares last traded at $13.27, with a volume of 52,885 shares traded.

The company reported $0.53 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.11. The company had revenue of $468.84 million during the quarter, compared to analysts' expectations of $464.37 million. Pediatrix Medical Group had a return on equity of 18.94% and a net margin of 5.66%. Pediatrix Medical Group's revenue was down 7.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.34 EPS.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Truist Financial lowered their target price on Pediatrix Medical Group from $18.00 to $16.00 and set a "hold" rating for the company in a research note on Friday, April 11th. UBS Group reduced their price target on Pediatrix Medical Group from $18.50 to $16.00 and set a "neutral" rating for the company in a research report on Monday, May 12th. Finally, Macquarie upped their price target on Pediatrix Medical Group from $19.00 to $20.00 and gave the stock an "outperform" rating in a research report on Thursday, May 8th. Four analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $16.67.

Institutional Investors Weigh In On Pediatrix Medical Group

Several hedge funds have recently added to or reduced their stakes in MD. California State Teachers Retirement System increased its position in Pediatrix Medical Group by 0.9% during the 4th quarter. California State Teachers Retirement System now owns 80,327 shares of the company's stock worth $1,054,000 after buying an additional 752 shares during the period. AlphaQuest LLC increased its position in Pediatrix Medical Group by 16.0% during the 1st quarter. AlphaQuest LLC now owns 5,877 shares of the company's stock worth $85,000 after buying an additional 811 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its position in Pediatrix Medical Group by 8.7% during the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 11,913 shares of the company's stock worth $171,000 after buying an additional 950 shares during the period. SummerHaven Investment Management LLC increased its position in shares of Pediatrix Medical Group by 0.9% in the first quarter. SummerHaven Investment Management LLC now owns 112,327 shares of the company's stock worth $1,628,000 after purchasing an additional 1,028 shares during the period. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its position in shares of Pediatrix Medical Group by 6.9% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 21,620 shares of the company's stock worth $310,000 after purchasing an additional 1,393 shares during the period. Institutional investors and hedge funds own 97.71% of the company's stock.

Pediatrix Medical Group Stock Down 1.1%

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.80 and a quick ratio of 1.81. The company has a market cap of $1.25 billion, a P/E ratio of 11.10 and a beta of 1.21. The stock has a 50-day moving average of $13.41 and a 200 day moving average of $13.83.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc, together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians.