Premier (NASDAQ:PINC) Shares Gap Up - Still a Buy?

Key Points

• Premier Inc.'s stock opened at $27.80 after a gap up from a previous close of $25.75, indicating a significant price movement with over 1.5 million shares traded.
• Research analysts have set varied price targets for Premier, with the average target at $25.29, reflecting a mix of "neutral" and "underperform" ratings.
• The company recently declared a quarterly dividend of $0.21 per share, representing a 3.0% dividend yield, although the payout ratio is quite high at 381.82%.

Premier, Inc. (NASDAQ:PINC - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $25.75, but opened at $27.80. Premier shares last traded at $27.90, with a volume of 1,575,536 shares traded.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on PINC. UBS Group increased their price target on Premier from $23.00 to $26.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 20th. Bank of America increased their price target on Premier from $19.00 to $21.00 and gave the stock an "underperform" rating in a research report on Tuesday, August 19th. Piper Sandler raised their target price on Premier from $24.00 to $28.00 and gave the company a "neutral" rating in a research report on Monday, August 25th. Canaccord Genuity Group raised their target price on Premier from $25.00 to $28.25 and gave the company a "hold" rating in a research report on Tuesday. Finally, Leerink Partners raised their target price on Premier from $24.00 to $26.00 and gave the company a "market perform" rating in a research report on Tuesday, August 19th. Six investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Premier has a consensus rating of "Reduce" and a consensus price target of $25.75.

Premier Price Performance

The company's 50 day simple moving average is $24.20 and its 200 day simple moving average is $22.13. The firm has a market cap of $2.34 billion, a price-to-earnings ratio of 128.65 and a beta of 0.61.

Premier Announces Dividend

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

Insiders Place Their Bets

In related news, General Counsel David L. Klatsky sold 3,349 shares of the business's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $25.57, for a total transaction of $85,633.93. Following the completion of the transaction, the general counsel owned 97,257 shares in the company, valued at approximately $2,486,861.49. The trade was a 3.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director John T. Bigalke sold 1,137 shares of the business's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $25.79, for a total transaction of $29,323.23. Following the transaction, the director owned 27,536 shares of the company's stock, valued at approximately $710,153.44. The trade was a 3.97% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 12,326 shares of company stock worth $317,230 over the last 90 days. Corporate insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On Premier

A number of institutional investors and hedge funds have recently modified their holdings of PINC. Cetera Investment Advisers grew its stake in shares of Premier by 25.9% during the fourth quarter. Cetera Investment Advisers now owns 16,906 shares of the company's stock worth $358,000 after purchasing an additional 3,476 shares in the last quarter. Millennium Management LLC grew its stake in shares of Premier by 142.8% during the fourth quarter. Millennium Management LLC now owns 402,566 shares of the company's stock worth $8,534,000 after purchasing an additional 236,787 shares in the last quarter. Two Sigma Investments LP acquired a new position in shares of Premier during the fourth quarter worth $892,000. Two Sigma Advisers LP lifted its position in Premier by 13.4% in the fourth quarter. Two Sigma Advisers LP now owns 24,600 shares of the company's stock valued at $522,000 after acquiring an additional 2,900 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Premier by 16.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 384,851 shares of the company's stock valued at $8,159,000 after acquiring an additional 54,392 shares during the last quarter. 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.