Conestoga Capital Advisors LLC, a leading institutional investor and asset manager with over $2 billion in assets under management, recently announced its decision to decrease its position in Model N, Inc. by 22.5%. The move was made during the fourth quarter of the fiscal year 2020 and was revealed in the company’s latest disclosure to the Securities and Exchange Commission (SEC). As a result of this decision, Conestoga Capital Advisors LLC now owns 3,772,912 shares of Model N’s stock, down from its previous holdings of 4,869,648 shares.
Model N is an innovative software maker that specializes in developing revenue management solutions for businesses across various industries such as pharmaceuticals, medical technology, semiconductors and high-tech companies. Their products offer a wide range of functionalities including pricing optimization, quoting management, regulatory compliance enforcement and rebates administration.
While this news may come as a surprise for some investors who are bullish on Model N’s prospects as a leading technology company within its niche marketspace., it follows Model N’s announcement earlier this year that it suffered an earnings decline of ($0.05) per share for Q4 2020 due to COVID-related headwinds within their core segments.
Despite these challenges faced by the company last quarter which resulted in negative net margins and returns on equity- Wall Street remains optimistic about Model N’s future growth again. Sell-side analysts predict that in spite of these challenges faced last quarter challenging recent events globally , the software maker will post negative earnings per share (-$0.02) for the current fiscal year.
Given Conestoga Capital Advisors LLC status as one of the most influential players in finance today.. While market followers might find some intrigue in their reduced stakeholding here amidst conditions both due to both volatility across multiple sectors and ongoing disruptions throughout global supply chains – perspectives lean towards this move being indicative more so reflective greater sensitivity to market pressures than any concerns regarding Model N in particular. By divesting of over a million shares late last year, Conestoga Capital Advisors LLC not only reduced its exposure to potential downside risks but given as well consideration for emerging investment opportunities that at present could prove more advantageous for their return-on-investment targets.
In conclusion, while this decision by an influential institutional investor may cause some concern amongst investors who have staked their bets on Model N’s growth trajectory and market position, it is important to note that this move doesn’t necessarily indicate a negative outlook on the company’s future performance. Instead, it reflects Conestoga Capital Advisors LLC’s strategy to reduce exposure amidst broader economic uncertainty while also recognizing new investment opportunities at this time. In turn, such balancing of portfolio positioning embodies core tenets of strategic asset allocation protocols whose long-term rewards are those which can diversify risk & maximize returns when consistently performed with discipline among active traders..
Model N’s Stock Attracts Attention from Large Investors and Insider Trades Amidst Analyst Reports
Model N, Inc. has attracted a lot of attention from large investors who have recently made changes to their positions in the company. Altshuler Shaham Ltd purchased a new position in Model N worth approximately $29,000 during the third quarter, while Tower Research Capital LLC TRC increased its holdings by 35% and now owns 1,664 shares of the software maker’s stock valued at $57,000 after purchasing an additional 431 shares during the last quarter. Meanwhile, Stephens Inc. AR purchased a new position worth $69,000 during the third quarter while Allspring Global Investments Holdings LLC has raised its stake by 94.2%. Finally, Almanack Investment Partners LLC purchased a new stake in shares of Model N in the third quarter valued at approximately $113,000. Notably, 96.63% of Model N’s stock is currently owned by hedge funds and other institutional investors.
Despite the activity of these investors, MODN stock opened at $34.31 on Friday with a market cap of $1.29 billion and a P/E ratio of -47.65 and beta of 0.69. Its 50-day moving average price is $33.84 while its 200-day moving average price is $36.79; Model N also has a debt-to-equity ratio of 1.51 as well as quick and current ratios both equal to 2.85.
Model N is known for developing cloud revenue optimization and compliance solutions for companies in various sectors including pharmaceuticals, medical technology, semiconductor manufacturing and high-tech industries; Its products provide business processes such as pricing policies development to ensure regulatory compliance as well as rebates and incentives management.
The shares have also attracted insider attention recently: Director Kimberly Decarlis sold 1,000 shares on February 15th at an average price of $34.18 while CFO John Ederer sold 10,823 shares of the stock in a transaction on March 14th at an average price of $32.09. Following these sales, Decarlis now directly owns 10,857 shares of the company’s stock, valued at approximately $371,092.26 and Ederer has 166,878 shares worth $5,355,115.02.
Many research analysts have reported on MODN in recent times with Morgan Stanley beginning coverage of the stock recommending it as “overweight” with a target price of $43.00 while Needham & Company LLC raised its price objective to $47.00 and gave the stock a “buy” rating during the same period on February 8th. Truist Financial upped their price objective to $52 while BTIG Research increased their target to $48 during the same period while StockNews.com lowered its assessment of Model N from “buy” to “hold”. According to data from Bloomberg, most analysts consider MODN as having a “moderate buy” consensus rating and a consensus target price of $46.00 indicating high potential for return on investment despite any initial setbacks experienced by this software giant.”