RadNet (NASDAQ:RDNT) Shares Gap Up - Here's Why

Key Points

• RadNet, Inc. shares saw a significant price increase, opening at $57.81 after the previous close of $53.36 and last trading at $63.58.
• The company reported earnings of $0.31 per share, exceeding analysts' expectations of $0.17, with revenue up 8.4% year-over-year at $498.23 million.
• Despite positive earnings, RadNet received mixed analyst ratings, with one downgrade to "sell" and a consensus rating of "buy" with an average target price of $69.60.

RadNet, Inc. (NASDAQ:RDNT - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $53.36, but opened at $57.81. RadNet shares last traded at $63.58, with a volume of 431,869 shares.

Analyst Upgrades and Downgrades

RDNT has been the subject of a number of research reports. Wall Street Zen cut RadNet from a "hold" rating to a "sell" rating in a research note on Sunday, June 29th. B. Riley initiated coverage on shares of RadNet in a research note on Friday, June 13th. They set a "buy" rating and a $69.00 price target for the company. Morgan Stanley raised shares of RadNet to an "overweight" rating in a research note on Monday. Finally, Truist Financial set a $74.00 target price on shares of RadNet in a research note on Thursday, July 10th. One analyst has rated the stock with a sell rating, four have given a buy rating and three have given a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $69.60.

RadNet Stock Up 19.9%

The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.87. The company has a market cap of $4.80 billion, a price-to-earnings ratio of -148.84 and a beta of 1.43. The stock has a fifty day moving average price of $56.58 and a two-hundred day moving average price of $55.78.

RadNet (NASDAQ:RDNT - Get Free Report) last posted its earnings results on Sunday, August 10th. The medical research company reported $0.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.17 by $0.14. RadNet had a positive return on equity of 1.41% and a negative net margin of 1.73%. The company had revenue of $498.23 million during the quarter, compared to the consensus estimate of $488.06 million. During the same quarter last year, the firm earned $0.16 earnings per share. The company's revenue was up 8.4% on a year-over-year basis. As a group, sell-side analysts expect that RadNet, Inc. will post 0.56 EPS for the current year.

Insider Transactions at RadNet

In other news, COO Norman R. Hames sold 5,536 shares of the business's stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $60.00, for a total transaction of $332,160.00. Following the sale, the chief operating officer directly owned 249,183 shares in the company, valued at approximately $14,950,980. The trade was a 2.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Alma Gregory Sorensen sold 55,000 shares of RadNet stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $56.48, for a total value of $3,106,400.00. Following the completion of the transaction, the executive vice president directly owned 1,160,509 shares in the company, valued at approximately $65,545,548.32. This represents a 4.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 63,447 shares of company stock valued at $3,613,220. 5.60% of the stock is owned by insiders.

Hedge Funds Weigh In On RadNet

A number of hedge funds and other institutional investors have recently made changes to their positions in RDNT. American Century Companies Inc. raised its position in shares of RadNet by 507.9% during the first quarter. American Century Companies Inc. now owns 1,272,928 shares of the medical research company's stock worth $63,290,000 after purchasing an additional 1,063,516 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in RadNet by 81.4% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 1,657,613 shares of the medical research company's stock valued at $82,417,000 after purchasing an additional 743,922 shares during the period. Alyeska Investment Group L.P. grew its stake in shares of RadNet by 141.7% during the 1st quarter. Alyeska Investment Group L.P. now owns 1,214,882 shares of the medical research company's stock worth $60,404,000 after acquiring an additional 712,270 shares during the period. Nuveen LLC purchased a new stake in RadNet in the 1st quarter worth about $27,422,000. Finally, Ameriprise Financial Inc. grew its holdings in RadNet by 180.6% during the 1st quarter. Ameriprise Financial Inc. now owns 776,160 shares of the medical research company's stock valued at $38,593,000 after buying an additional 499,534 shares in the last quarter. 77.90% of the stock is owned by institutional investors and hedge funds.

About RadNet

RadNet, Inc, together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services.

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