Quality Systems (QSII) Sees Unusually-High Trading Volume Following Strong Earnings

Quality Systems (NASDAQ:QSII) shares saw unusually-strong trading volume on Friday following a stronger than expected earnings report. Approximately 2,338,700 shares changed hands during mid-day trading, an increase of 593% from the previous session’s volume of 337,438 shares.The stock last traded at $16.99 and had previously closed at $15.05.

The company reported $0.16 EPS for the quarter, topping the Zacks’ consensus estimate of $0.13 by $0.03. The firm had revenue of $135.80 million during the quarter, compared to analyst estimates of $131.95 million. Quality Systems had a return on equity of 12.08% and a net margin of 3.39%. The company’s revenue was up 2.2% on a year-over-year basis. During the same period last year, the company earned $0.21 earnings per share.

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A number of analysts recently commented on QSII shares. BidaskClub upgraded Quality Systems from a “hold” rating to a “buy” rating in a research report on Tuesday, April 10th. Piper Jaffray Companies reiterated a “buy” rating and issued a $17.00 price objective on shares of Quality Systems in a research report on Friday, January 26th. Finally, Zacks Investment Research upgraded Quality Systems from a “sell” rating to a “hold” rating in a research report on Tuesday, February 6th. Four investment analysts have rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $15.06.

In related news, CFO James Robert Jr. Arnold bought 40,000 shares of Quality Systems stock in a transaction on Thursday, March 15th. The shares were purchased at an average price of $13.10 per share, for a total transaction of $524,000.00. Following the completion of the acquisition, the chief financial officer now owns 212,156 shares in the company, valued at $2,779,243.60. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 17.90% of the stock is currently owned by company insiders.

Several large investors have recently added to or reduced their stakes in QSII. Fox Run Management L.L.C. bought a new position in shares of Quality Systems during the 4th quarter valued at about $367,000. Assenagon Asset Management S.A. bought a new position in shares of Quality Systems during the 4th quarter valued at about $1,203,000. Foundry Partners LLC lifted its holdings in shares of Quality Systems by 3.3% during the 4th quarter. Foundry Partners LLC now owns 292,105 shares of the company’s stock valued at $3,967,000 after purchasing an additional 9,320 shares in the last quarter. Algert Global LLC lifted its holdings in shares of Quality Systems by 16.2% during the 4th quarter. Algert Global LLC now owns 200,141 shares of the company’s stock valued at $2,718,000 after purchasing an additional 27,874 shares in the last quarter. Finally, Alambic Investment Management L.P. lifted its holdings in shares of Quality Systems by 18.2% during the 4th quarter. Alambic Investment Management L.P. now owns 263,047 shares of the company’s stock valued at $3,572,000 after purchasing an additional 40,447 shares in the last quarter. Institutional investors and hedge funds own 70.45% of the company’s stock.

The company has a debt-to-equity ratio of 0.12, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market cap of $932.77 million, a price-to-earnings ratio of 22.96, a PEG ratio of 2.78 and a beta of 0.66.

Quality Systems Company Profile

Quality Systems, Inc, together with its subsidiaries, develops and markets software and services that automate various aspects of practice management (PM) and electronic health records for medical and dental practices in the United States. The company's NextGen division provides integrated clinical, financial, and connectivity solutions for ambulatory and dental provider organizations.