RadNet (NASDAQ:RDNT) Trading Up 6.9% on Earnings Beat

Key Points

• RadNet shares rose 6.9% after the company reported quarterly EPS of $0.29, beating estimates by $0.09, while revenue reached $622.72 million—up 25% year over year and above expectations.
• Analyst sentiment remains mixed but leans positive: RadNet has an average “Moderate Buy” rating and a consensus price target of $87.43, despite recent downgrades from Zacks Research and Weiss Ratings.
• Institutional investors own 77.9% of RadNet, while insiders own 5.14%; recent insider activity included stock sales by a director and the CEO.

Shares of RadNet, Inc. (NASDAQ:RDNT - Get Free Report) traded up 6.9% during trading on Monday following a better than expected earnings announcement. The company traded as high as $74.41 and last traded at $77.4050. 156,969 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 830,771 shares. The stock had previously closed at $72.39.

The medical research company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.09. RadNet had a negative net margin of 0.66% and a positive return on equity of 2.77%. The company had revenue of $622.72 million during the quarter, compared to analyst estimates of $610.87 million. During the same quarter in the previous year, the business posted $0.31 EPS. RadNet's revenue for the quarter was up 25.0% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Zacks Research downgraded RadNet from a "hold" rating to a "strong sell" rating in a research note on Monday, July 13th. Jefferies Financial Group reiterated a "buy" rating on shares of RadNet in a report on Friday, July 31st. Barclays dropped their price objective on RadNet from $70.00 to $65.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Finally, Weiss Ratings lowered shares of RadNet from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, May 12th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $87.43.

Insider Activity

In other RadNet news, Director David L. Swartz sold 2,699 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $53.89, for a total value of $145,449.11. Following the transaction, the director directly owned 177,013 shares in the company, valued at $9,539,230.57. The trade was a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Cornelis Wesdorp sold 4,750 shares of RadNet stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $58.11, for a total transaction of $276,022.50. Following the completion of the sale, the chief executive officer directly owned 69,075 shares in the company, valued at $4,013,948.25. This trade represents a 6.43% decrease in their position. The SEC filing for this sale provides additional information. 5.14% of the stock is currently owned by corporate insiders.

Institutional Trading of RadNet

Several hedge funds have recently made changes to their positions in the company. Nations Financial Group Inc. IA ADV bought a new position in RadNet in the 4th quarter valued at $1,118,000. Van Berkom & Associates Inc. increased its position in shares of RadNet by 24.9% during the 1st quarter. Van Berkom & Associates Inc. now owns 1,028,586 shares of the medical research company's stock valued at $57,488,000 after purchasing an additional 204,858 shares during the last quarter. Campbell Newman Asset Management Inc. bought a new position in RadNet during the fourth quarter valued at approximately $1,773,000. Bessemer Group Inc. raised its stake in shares of RadNet by 11.4% during the fourth quarter. Bessemer Group Inc. now owns 493,999 shares of the medical research company's stock worth $35,248,000 after acquiring an additional 50,690 shares in the last quarter. Finally, SEB Asset Management AB purchased a new position in shares of RadNet in the first quarter worth about $4,287,000. 77.90% of the stock is currently owned by institutional investors.

RadNet Stock Performance

The business has a 50 day moving average price of $60.95 and a two-hundred day moving average price of $61.66. The stock has a market cap of $6.06 billion, a PE ratio of -430.31 and a beta of 1.36. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.17 and a quick ratio of 1.17.

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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