Maximus (NYSE:MMS) Shares Gap Down - Time to Sell?

Key Points

• Maximus shares opened sharply lower, falling from the prior close of $69.22 to $65.64; they were last trading near $65.54.
• Analyst opinions are mixed but lean cautious: recent rating changes leave the stock with a consensus Hold rating.
• In its latest reported quarter, Maximus narrowly beat EPS estimates ($2.22 versus $2.21), but revenue fell 5.1% year over year and missed expectations. The company also declared a quarterly dividend of $0.33 per share.

Maximus, Inc. (NYSE:MMS - Get Free Report)'s share price gapped down before the market opened on Monday. The stock had previously closed at $69.22, but opened at $65.64. Maximus shares last traded at $65.5410, with a volume of 14,103 shares traded.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on MMS. Zacks Research raised Maximus from a "strong sell" rating to a "hold" rating in a report on Thursday, October 1st. Weiss Ratings restated a "hold (c-)" rating on shares of Maximus in a research note on Monday, August 17th. Finally, Wall Street Zen downgraded Maximus from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Two equities research analysts have rated the stock with a Hold rating. According to MarketBeat, the stock presently has a consensus rating of "Hold".

Maximus Trading Down 0.3%

The firm has a market capitalization of $3.42 billion, a price-to-earnings ratio of 9.64 and a beta of 0.56. The business's 50 day moving average price is $58.76 and its 200-day moving average price is $64.38. The company has a debt-to-equity ratio of 0.90, a current ratio of 2.42 and a quick ratio of 2.42.

Maximus (NYSE:MMS - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The health services provider reported $2.22 EPS for the quarter, beating analysts' consensus estimates of $2.21 by $0.01. Maximus had a net margin of 7.07% and a return on equity of 24.91%. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter last year, the firm earned $2.16 earnings per share. The firm's revenue was down 5.1% compared to the same quarter last year. Equities analysts forecast that Maximus, Inc. will post 8.03 EPS for the current fiscal year.

Maximus Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 30th. Stockholders of record on Friday, November 13th will be issued a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, November 13th. Maximus's dividend payout ratio (DPR) is currently 19.50%.

Insider Activity at Maximus

In related news, insider Michelle Link sold 3,208 shares of Maximus stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $54.23, for a total value of $173,969.84. Following the sale, the insider directly owned 13,881 shares in the company, valued at $752,766.63. The trade was a 18.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Maximus

Hedge funds and other institutional investors have recently bought and sold shares of the business. Allworth Financial LP grew its position in shares of Maximus by 60.8% in the third quarter. Allworth Financial LP now owns 645 shares of the health services provider's stock valued at $35,000 after purchasing an additional 244 shares during the last quarter. Russell Investments Group Ltd. increased its stake in shares of Maximus by 28.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 202,770 shares of the health services provider's stock worth $10,785,000 after purchasing an additional 44,663 shares in the last quarter. Jefferies Financial Group Inc. acquired a new position in shares of Maximus during the 3rd quarter worth approximately $556,000. Leuthold Group LLC acquired a new position in shares of Maximus during the 3rd quarter worth approximately $304,000. Finally, Fulcrum Asset Management LLP acquired a new position in shares of Maximus during the 3rd quarter worth approximately $179,000. Institutional investors and hedge funds own 97.21% of the company's stock.

About Maximus

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.