Raymond James Financial Reaffirms "Strong-Buy" Rating for RadNet (NASDAQ:RDNT)

Key Points

• Raymond James Financial has reaffirmed a "strong-buy" rating for RadNet (NASDAQ:RDNT) with a new target price of $75.00, reflecting a 17.92% potential upside from its current price.
• RadNet reported a positive quarterly earnings performance, achieving $0.31 EPS against estimates of $0.17, alongside a year-over-year revenue increase of 8.4%.
• Insider selling activity was noted, with COO Norman Hames and EVP Alma Gregory Sorensen reducing their stakes in the company, indicating possible concerns despite the positive analyst ratings.

RadNet (NASDAQ:RDNT - Get Free Report)'s stock had its "strong-buy" rating reaffirmed by stock analysts at Raymond James Financial in a report issued on Wednesday,Benzinga reports. They presently have a $75.00 price target on the medical research company's stock, up from their previous price target of $66.00. Raymond James Financial's price target indicates a potential upside of 11.19% from the company's current price.

A number of other equities analysts have also recently commented on the company. Wall Street Zen cut RadNet from a "hold" rating to a "sell" rating in a report on Sunday, June 29th. Morgan Stanley raised RadNet to an "overweight" rating in a report on Monday, August 11th. B. Riley began coverage on RadNet in a report on Friday, June 13th. They issued a "buy" rating and a $69.00 price target for the company. Finally, Truist Financial set a $74.00 price target on RadNet in a report on Thursday, July 10th. One analyst has rated the stock with a hold rating, four have issued a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat, RadNet presently has a consensus rating of "Buy" and a consensus price target of $71.60.

RadNet Price Performance

Shares of RadNet stock traded down $1.30 during mid-day trading on Wednesday, reaching $67.45. 1,388,172 shares of the stock traded hands, compared to its average volume of 995,100. The business has a 50-day moving average of $57.37 and a 200 day moving average of $55.88. RadNet has a fifty-two week low of $45.00 and a fifty-two week high of $93.65. The stock has a market capitalization of $5.19 billion, a PE ratio of -337.23 and a beta of 1.43. The company has a quick ratio of 2.01, a current ratio of 2.00 and a debt-to-equity ratio of 0.91.

RadNet (NASDAQ:RDNT - Get Free Report) last announced its earnings results on Sunday, August 10th. The medical research company reported $0.31 EPS for the quarter, beating analysts' consensus estimates of $0.17 by $0.14. RadNet had a positive return on equity of 2.41% and a negative net margin of 0.78%. The business had revenue of $498.23 million during the quarter, compared to analysts' expectations of $488.06 million. During the same quarter in the prior year, the firm earned $0.16 earnings per share. The business's revenue was up 8.4% compared to the same quarter last year. On average, analysts predict that RadNet will post 0.56 EPS for the current year.

Insider Activity at RadNet

In related news, EVP Alma Gregory Sorensen sold 55,000 shares of the 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP David Jeffrey Katz sold 17,000 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $68.31, for a total value of $1,161,270.00. Following the completion of the transaction, the executive vice president owned 86,774 shares of the company's stock, valued at $5,927,531.94. The trade was a 16.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. 5.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RDNT. American Century Companies Inc. grew its position in RadNet by 507.9% in 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 acquiring an additional 1,063,516 shares during the period. T. Rowe Price Investment Management Inc. grew its position in RadNet by 81.4% in the first quarter. T. Rowe Price Investment Management Inc. now owns 1,657,613 shares of the medical research company's stock worth $82,417,000 after acquiring an additional 743,922 shares during the period. Alyeska Investment Group L.P. grew its position in RadNet by 141.7% in the first 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. Ameriprise Financial Inc. grew its position in RadNet by 79.7% in the second quarter. Ameriprise Financial Inc. now owns 1,394,552 shares of the medical research company's stock worth $79,364,000 after acquiring an additional 618,392 shares during the period. Finally, Nuveen LLC purchased a new position in RadNet in the first quarter worth approximately $27,422,000. 77.90% of the stock is currently owned by hedge funds and other institutional investors.

RadNet Company Profile

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.