Maximus (NYSE:MMS) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research has upgraded Maximus (NYSE:MMS) from a "hold" rating to a "strong-buy" rating, reflecting positive analyst sentiment.
• Maximus reported $2.16 earnings per share for its latest quarter, exceeding the consensus estimate of $1.39 and showing a 2.5% increase in revenue compared to the same quarter last year.
• Institutional investors have shown increased interest in Maximus, with major firms like Mackenzie Financial Corp and Dimensional Fund Advisors significantly boosting their holdings in recent quarters.

Zacks Research upgraded shares of Maximus (NYSE:MMS - Free Report) from a hold rating to a strong-buy rating in a report issued on Tuesday, August 26th,Zacks.com reports.

Separately, Wall Street Zen downgraded shares of Maximus from a "buy" rating to a "hold" rating in a report on Thursday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company. According to data from MarketBeat, Maximus has an average rating of "Strong Buy" and an average price target of $90.00.

Maximus Stock Up 1.0%

NYSE MMS traded up $0.87 during mid-day trading on Tuesday, hitting $88.79. The company's stock had a trading volume of 93,686 shares, compared to its average volume of 568,115. The company's 50 day simple moving average is $76.74 and its 200 day simple moving average is $71.85. Maximus has a twelve month low of $63.77 and a twelve month high of $93.94. The company has a current ratio of 2.27, a quick ratio of 2.27 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $5.00 billion, a price-to-earnings ratio of 16.35 and a beta of 0.61.

Maximus (NYSE:MMS - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The health services provider reported $2.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.39 by $0.77. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.29 billion. Maximus had a net margin of 5.83% and a return on equity of 24.44%. The business's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.74 EPS. Maximus has set its FY 2025 guidance at 7.350-7.550 EPS. Analysts anticipate that Maximus will post 6.15 earnings per share for the current year.

Maximus Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Sunday, August 31st. Stockholders of record on Friday, August 15th were given a dividend of $0.30 per share. The ex-dividend date was Friday, August 15th. This represents a $1.20 annualized dividend and a dividend yield of 1.4%. Maximus's dividend payout ratio is currently 22.10%.

Institutional Investors Weigh In On Maximus

Several hedge funds and other institutional investors have recently modified their holdings of MMS. Parkside Financial Bank & Trust increased its position in shares of Maximus by 21.7% in the second quarter. Parkside Financial Bank & Trust now owns 879 shares of the health services provider's stock worth $62,000 after purchasing an additional 157 shares during the last quarter. LRI Investments LLC increased its position in shares of Maximus by 11.9% in the first quarter. LRI Investments LLC now owns 1,833 shares of the health services provider's stock worth $125,000 after purchasing an additional 195 shares during the last quarter. Verus Financial Partners Inc. increased its position in shares of Maximus by 6.7% in the second quarter. Verus Financial Partners Inc. now owns 3,387 shares of the health services provider's stock worth $244,000 after purchasing an additional 214 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Maximus by 0.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,476 shares of the health services provider's stock worth $2,351,000 after purchasing an additional 221 shares during the last quarter. Finally, Vestcor Inc increased its position in shares of Maximus by 2.3% in the first quarter. Vestcor Inc now owns 9,877 shares of the health services provider's stock worth $674,000 after purchasing an additional 223 shares during the last quarter. 97.21% of the stock is currently owned by institutional investors.

Maximus Company Profile

Maximus, Inc operates as a provider of government services in the United States and internationally. It operates through three segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Services segment offers program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; and person-centered independent disability, long-term sick, and other health assessments.