Premier (NASDAQ:PINC) Announces Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Premier (NASDAQ:PINC) reported earnings of $0.43 EPS, exceeding expectations of $0.34 EPS by $0.09, despite a 12.5% year-over-year revenue decline.
• The company announced a quarterly dividend of $0.21, equating to an annualized yield of 3.2%, with a dividend payout ratio of 147.37%.
• Following the earnings announcement, Premier's stock rose by 8.6%, trading at approximately $26.53, with significant trading volume of over 2 million shares on that day.

Premier (NASDAQ:PINC - Get Free Report) released its earnings results on Tuesday. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.34 by $0.09, RTT News reports. Premier had a net margin of 5.68% and a return on equity of 8.79%. The firm had revenue of $262.86 million during the quarter, compared to analysts' expectations of $247.10 million. During the same period in the previous year, the company earned $0.69 EPS. Premier's revenue for the quarter was down 12.5% on a year-over-year basis. Premier updated its FY 2026 guidance to 1.330-1.430 EPS.

Premier Trading Up 8.6%

NASDAQ PINC traded up $2.0980 during trading on Tuesday, reaching $26.5280. 2,139,403 shares of the company's stock were exchanged, compared to its average volume of 1,599,332. The firm has a market capitalization of $2.18 billion, a PE ratio of 46.55 and a beta of 0.56. Premier has a fifty-two week low of $17.23 and a fifty-two week high of $27.26. The company's fifty day simple moving average is $22.06 and its 200-day simple moving average is $20.77.

Premier Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Monday, September 1st will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 3.2%. Premier's dividend payout ratio is currently 147.37%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on PINC. Piper Sandler upped their price objective on shares of Premier from $19.00 to $24.00 and gave the company a "neutral" rating in a research report on Wednesday, May 21st. Canaccord Genuity Group increased their price target on Premier from $19.00 to $22.00 and gave the company a "hold" rating in a report on Thursday, May 8th. Finally, Robert W. Baird upped their target price on Premier from $19.00 to $22.00 and gave the company a "neutral" rating in a research report on Thursday, May 15th. Six research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $22.20.

Insider Activity

In related news, Director John T. Bigalke sold 1,137 shares of the stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $23.03, for a total value of $26,185.11. Following the completion of the sale, the director owned 28,673 shares in the company, valued at approximately $660,339.19. This trade represents a 3.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Helen M. Boudreau sold 2,000 shares of the firm's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $22.88, for a total transaction of $45,760.00. Following the transaction, the director owned 18,668 shares of the company's stock, valued at approximately $427,123.84. This represents a 9.68% decrease in their position. The disclosure for this sale can be found here. 0.96% of the stock is owned by company insiders.

Institutional Investors Weigh In On Premier

A number of hedge funds have recently made changes to their positions in the company. Smartleaf Asset Management LLC increased its holdings in Premier by 155.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,541 shares of the company's stock valued at $55,000 after purchasing an additional 1,545 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in Premier by 316.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,968 shares of the company's stock worth $65,000 after buying an additional 2,255 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in Premier by 1,069.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,862 shares of the company's stock worth $172,000 after acquiring an additional 7,190 shares during the last quarter. Vident Advisory LLC bought a new position in shares of Premier in the second quarter worth about $204,000. Finally, M&T Bank Corp acquired a new position in shares of Premier during the second quarter worth approximately $204,000. Institutional investors and hedge funds own 74.41% of the company's stock.

Premier Company Profile

Premier, Inc, together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions.

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