The Case for and Against Allscripts Healthcare Solutions, Inc. (MDRX)

Allscripts Healthcare Solutions, Inc. (MDRX) is an interesting player in the Technology space, with a focus on Application Software. The stock has been active on the tape, currently trading at $12.16, up from yesterday’s close by 0.25%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Allscripts Healthcare Solutions, Inc. (MDRX) currently trades with a market capitalization of $2.24 Billion. That value represents a market adjusting for revenues that have been growing by 21.60 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $233.03 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.17 on a per share basis this quarter. Perhaps, that suggests something about why 5.54% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Allscripts Healthcare Solutions, Inc. recorded a 52-week high of $16.13. It is now trading 3.97% off that level. The stock is trading $13.44 its 50-day moving average by 1.28%. The stock carved out a 52-week low down at $10.78.

In recent action, Allscripts Healthcare Solutions, Inc. (MDRX) has made a move of -11.50% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.08, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 7.48% with $178.38 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of MDRX.

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