Oppenheimer Maintains Their Hold Rating on Ultimate Software (ULTI)


In a report released today, Brian Schwartz from Oppenheimer maintained a Hold rating on Ultimate Software (NASDAQ: ULTI). The company’s shares closed yesterday at $271.66.

Schwartz commented:

“Ultimate reported another good quarter in 3Q as management’s better execution trend in the reported results continues. The growth outlook looks solid for Ultimate with 2019 targets set above consensus, and the medium-term $2B+ revenue target expected a year earlier in 2021, which is bullish. On balance, the operating margin guidance is likely a disappointment because it shows down margins expected in 4Q:2018, and continuing in 2019, mostly from PeopleDoc integration expenses. Bottom Line: While our concerns about the Street overshooting on Ultimate’s operating margin came to fruition with guidance, and the Street will lower margins, we are encouraged by the more consistent execution in 2018 from Ultimate. We also think management has set the numbers appropriately with the guidance to mitigate estimates risk. Maintain Perform.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 24.9% and a 71.5% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and MiX Telematics.

Ultimate Software has an analyst consensus of Moderate Buy, with a price target consensus of $333.50.

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Based on Ultimate Software’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $17.09 million. In comparison, last year the company had a net profit of $4.7 million.

Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ULTI in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

The Ultimate Software Group, Inc. engages in the development and provision of cloud-based human capital management solutions. Its products include solutions for talent acquisition and on boarding, human resources management and compliance, benefits management and online enrollment, payroll, performance management, salary planning and budgeting for compensation management, succession management, reporting and analytical decision-making tools, and time and attendance. It also offers role-based features for human resources professionals, executives, managers, administrators, and employees whether they are in or out of the office. The company was founded by Scott S. Scherr in April 1996 and is headquartered in Weston, FL.

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