Premier (NASDAQ:PINC) Sees Large Volume Increase - Should You Buy?

Key Points

• Premier, Inc. experienced a significant increase in trading volume, with 5.38 million shares traded—an increase of 222% compared to the previous session.
• Analysts have adjusted their price targets for Premier, with ranges varying from $21.00 to $28.25, resulting in a consensus price target of $26.07.
• The company recently announced a quarterly dividend of $0.21 per share, with a dividend yield of 3.0%, although it has a high payout ratio of 381.82%.

Premier, Inc. (NASDAQ:PINC - Get Free Report) shares saw an uptick in trading volume on Wednesday . 5,381,338 shares changed hands during mid-day trading, an increase of 222% from the previous session's volume of 1,670,399 shares.The stock last traded at $27.78 and had previously closed at $28.00.

Analysts Set New Price Targets

A number of brokerages recently weighed in on PINC. Leerink Partners raised their price target on shares of Premier from $24.00 to $26.00 and gave the company a "market perform" rating in a report on Tuesday, August 19th. Robert W. Baird lifted their target price on shares of Premier from $22.00 to $27.00 and gave the stock a "neutral" rating in a report on Wednesday, August 20th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Premier in a report on Wednesday, October 8th. Bank of America lifted their target price on shares of Premier from $19.00 to $21.00 and gave the stock an "underperform" rating in a report on Tuesday, August 19th. Finally, Canaccord Genuity Group lifted their target price on shares of Premier from $25.00 to $28.25 and gave the stock a "hold" rating in a report on Tuesday, September 23rd. Seven analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $26.07.

Premier Stock Performance

The stock has a market capitalization of $2.30 billion, a P/E ratio of 126.48 and a beta of 0.64. The company's fifty day simple moving average is $26.32 and its two-hundred day simple moving average is $23.13.

Premier (NASDAQ:PINC - Get Free Report) last announced its earnings results on Tuesday, January 14th. The company reported $0.67 EPS for the quarter. Premier had a net margin of 2.00% and a return on equity of 7.04%. The company had revenue of ($713.06) million for the quarter. On average, research analysts predict that Premier, Inc. will post 1.13 earnings per share for the current fiscal year.

Premier Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Monday, September 1st were given a dividend of $0.21 per share. The ex-dividend date of this dividend was Friday, August 29th. This represents a $0.84 annualized dividend and a dividend yield of 3.0%. Premier's payout ratio is presently 381.82%.

Insider Buying and Selling

In related news, Director John T. Bigalke sold 1,137 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $25.79, for a total transaction of $29,323.23. Following the sale, the director directly owned 27,536 shares in the company, valued at approximately $710,153.44. This represents a 3.97% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Andy Brailo sold 6,521 shares of the stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $25.79, for a total transaction of $168,176.59. Following the completion of the transaction, the insider directly owned 99,447 shares in the company, valued at $2,564,738.13. The trade was a 6.15% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 12,326 shares of company stock worth $317,230. 0.96% of the stock is owned by insiders.

Institutional Investors Weigh In On Premier

Institutional investors and hedge funds have recently modified their holdings of the stock. First Horizon Advisors Inc. lifted its position in shares of Premier by 198.2% in the 2nd quarter. First Horizon Advisors Inc. now owns 1,130 shares of the company's stock worth $25,000 after purchasing an additional 751 shares during the period. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in Premier during the 2nd quarter valued at about $32,000. Signaturefd LLC increased its stake in Premier by 72.2% during the 2nd quarter. Signaturefd LLC now owns 2,197 shares of the company's stock valued at $48,000 after purchasing an additional 921 shares in the last quarter. GAMMA Investing LLC increased its stake in Premier by 112.1% during the 2nd quarter. GAMMA Investing LLC now owns 2,522 shares of the company's stock valued at $55,000 after purchasing an additional 1,333 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its stake in shares of Premier by 155.1% in the second quarter. Smartleaf Asset Management LLC now owns 2,541 shares of the company's stock worth $55,000 after acquiring an additional 1,545 shares during the period. 74.41% of the stock is owned by hedge funds and other institutional investors.

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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