RadNet (NASDAQ:RDNT) Shares Up 6.3% - Should You Buy?

Key Points

• RadNet shares jumped 6.3% to about $61.91 on Thursday, though trading volume was ~66% below its average session level.
• Analysts are broadly positive with a consensus rating of "Moderate Buy" and a consensus target of about $90.43, including multiple Buy/Strong Buy notes but one notable Sell from Weiss Ratings.
• The company beat quarterly estimates—reporting $0.23 EPS (vs. $0.19 est.) and revenue up 14.8%—but still shows a negative net margin and a negative trailing PE (~-246.28), indicating profitability concerns despite top-line growth.

RadNet, Inc. (NASDAQ:RDNT - Get Free Report)'s stock price shot up 6.3% on Thursday . The stock traded as high as $62.12 and last traded at $61.9140. 267,614 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 781,163 shares. The stock had previously closed at $58.22.

Analysts Set New Price Targets

Several research firms have recently weighed in on RDNT. Jefferies Financial Group reissued a "buy" rating and issued a $91.00 price target on shares of RadNet in a research note on Tuesday, March 3rd. KeyCorp raised shares of RadNet to a "strong-buy" rating in a research note on Friday, January 9th. Raymond James Financial reissued a "strong-buy" rating on shares of RadNet in a research note on Thursday, December 18th. Truist Financial set a $90.00 target price on shares of RadNet in a research note on Wednesday, December 17th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RadNet in a research note on Monday, December 29th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $90.43.

RadNet Stock Up 5.8%

The company has a debt-to-equity ratio of 0.79, a current ratio of 1.76 and a quick ratio of 1.76. The business's 50 day simple moving average is $63.37 and its 200 day simple moving average is $71.60. The company has a market capitalization of $4.78 billion, a PE ratio of -246.28 and a beta of 1.53.

RadNet (NASDAQ:RDNT - Get Free Report) last issued its earnings results on Monday, March 2nd. The medical research company reported $0.23 EPS for the quarter, topping analysts' consensus estimates of $0.19 by $0.04. RadNet had a negative net margin of 0.91% and a positive return on equity of 2.52%. The company had revenue of $547.71 million for the quarter, compared to the consensus estimate of $515.67 million. During the same period in the previous year, the firm earned $0.22 earnings per share. RadNet's quarterly revenue was up 14.8% compared to the same quarter last year. As a group, analysts anticipate that RadNet, Inc. will post 0.56 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Alma Gregory Sorensen sold 15,000 shares of RadNet stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $62.15, for a total value of $932,250.00. Following the completion of the sale, the insider owned 1,208,923 shares in the company, valued at approximately $75,134,564.45. This trade represents a 1.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 5.60% of the company's stock.

Institutional Investors Weigh In On RadNet

A number of hedge funds have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC lifted its holdings in RadNet by 13.3% during the 3rd quarter. Smartleaf Asset Management LLC now owns 1,361 shares of the medical research company's stock worth $102,000 after buying an additional 160 shares in the last quarter. Crossmark Global Holdings Inc. lifted its holdings in RadNet by 3.3% during the 4th quarter. Crossmark Global Holdings Inc. now owns 5,048 shares of the medical research company's stock worth $360,000 after buying an additional 163 shares in the last quarter. Summit Financial LLC lifted its holdings in RadNet by 1.3% during the 4th quarter. Summit Financial LLC now owns 12,563 shares of the medical research company's stock worth $896,000 after buying an additional 166 shares in the last quarter. Jones Financial Companies Lllp lifted its holdings in RadNet by 62.2% during the 3rd quarter. Jones Financial Companies Lllp now owns 446 shares of the medical research company's stock worth $34,000 after buying an additional 171 shares in the last quarter. Finally, Guidance Capital Inc. lifted its holdings in RadNet by 2.0% during the 3rd quarter. Guidance Capital Inc. now owns 9,089 shares of the medical research company's stock worth $758,000 after buying an additional 174 shares in the last quarter. 77.90% of the stock is currently owned by institutional investors and hedge funds.

RadNet Company Profile

RadNet, Inc is a leading independent provider of outpatient diagnostic imaging services in the United States. Through a nationwide network of fixed-site imaging centers and affiliated joint-venture locations, the company delivers a comprehensive suite of radiology services including MRI, CT, PET/CT, ultrasound, X-ray, mammography, bone densitometry, nuclear medicine and interventional radiology procedures. RadNet also offers teleradiology and imaging management solutions to physician practices, hospitals and healthcare systems.

Founded in 1981 and headquartered in Los Angeles, RadNet has expanded its footprint organically and through strategic acquisitions.

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