Inovalon Holdings Inc (NASDAQ:INOV) shares are collapsing 37% after underwhelming investors with a disappointing guidance. As a result of the failure to enter into the expected agreement during the fourth quarter of 2016, the Company has revised its full year 2016 guidance to $426 – $428 million (from $470 million to $490 million).
Keith Dunleavy, M.D., Chief Executive Officer and Chairman of the Board of Inovalon commented: “While this is certainly not the situation we expected or desired, it does demonstrate the level of market opportunity for our platform capabilities, the significance of value that can be driven by those capabilities, and the size and scale at which Inovalon is being called upon to partner and deliver them.”
On the ratings front, Inovalon Holdings has been the subject of a number of recent research reports. In a report released today, Wells Fargo analyst Jamie Stockton downgraded INOV to Hold, with a price target of $11, which implies a downside of 26% from current levels. In addition, Piper Jaffray’s Sean Wieland reiterated a Sell rating on the stock and has a price target of $11 as well.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jamie Stockton and Sean Wieland have a yearly average return of 11.6% and 7.8% respectively. Stockton has a success rate of 57% and is ranked #910 out of 4269 analysts, while Wieland has a success rate of 56% and is ranked #738.
Overall, one research analyst has rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $14.00 which is 5.7% under where the stock closed yesterday.
Inovalon Holdings, Inc. operates as a technology company that combines advanced cloud-based data analytics and data-driven intervention platforms to achieve meaningful insight and improvement in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape. Its platform drives impact, improving quality and economics for health plans, hospitals, physicians, patients, pharmaceutical companies, and researchers.