A Look At How Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) Has Been Fairing In The Market

Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) recently revealed plans to divest its Netsmart Technologies Inc for roughly $525 million. The announcement pushed up the price of the company’s shares by 4.1% on Monday.

MDRX expects to close the deal within this month, and the $525 million proceeds from the sale will be used to offset a long-term $500 million debt. Some of the remaining amount will also be used for share buybacks and investing in various growth areas.

It is not clear whether the sale is a good move for the company. MDRX has been running its homecare business through Netsmart since 2018 as part of a deal through which it gained a majority stake in the firm. David Larsen believes that the sale of the unit might provide a mixed outcome. This is because Netsmart Technologies provided significant growth for MDRX over time. On the other hand, MDRX will benefit from the revenue after the sale.

Stock performance and earnings

Larsen believes that the sale could lead to further pressure on the company’s stock. So far MDRX’s stock has so far dropped by about 32% this year and about -1.9% on the S&P 500 index. The stock has so far gained by roughly 1.83% over the last five days although it experienced a -19.22% decline in the previous 30 days in the stock market. The stock price declined by -30.51% over the past three months and by about -29.92% over the past 12 months.

The company has 174.7 million outstanding shares, and its market capitalization currently stands at $1.7 billion. MDRX stock has so far achieved its 52-week high at $16.13 and a $9.24 52-week low.


As for the earnings, MDRX’s reported its earnings per share (EPS) for the third quarter ended September 30 at $0.13. This was the same EPS reported for the previous quarter while the first quarter ended March 31. The company had a $-1.09 EPS for the entire fiscal year ended December 31 in 2017. MDRX has a consensus estimate for Q4 2018 at $0.14 based on its current performance as well as its performance in the previous three quarters.

MDRX currently has 175.08 million outstanding shares that are held by its shareholders. This includes the shares held by institutional investors as well as insiders and company officials. Meanwhile, MDRX stocks are currently maintaining a 5.17% weekly volatility while the monthly volatility stands at around 4.00%.

A higher weekly volatility means that the value of the stock can change drastically within a short period. Low volatility, on the other hand, implies the opposite where the price changes value gradually and consistently over time. In short, a stock is considered riskier if it is characterized by higher volatility.

The company’s latest earnings report revealed that its return on equity stands at 0.48% and that it has a 2.03% profit margin. The company has a -0.12% return on assets, a $0.83 price-to-sales, and a $1.52 price-to-book.

About Allscripts Healthcare Solutions

MDRX is a leading firm in the healthcare IT sector which focuses on delivering more value to the world. The company integrates information allowing users to access their data through various multivendor EHR systems, care teams, and care sites.

The company has been working together with its partners towards integrating precision medicine and introducing comprehensive health solutions. Its goal is to deliver smarter healthcare delivery so that it can promote better health in patients across communities and populations. MDRX’s solutions include precision medicine, population health management, financial management, and HER solutions are designed to provide access to connected information.

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