Allscripts (MDRX) announced a new share repurchase program through which the company may buy up to $350 million shares.
Following the share buyback announcement, Allscripts rose almost 5% on May 26 to close at $17.48. The company provides healthcare information technology solutions that advance clinical, financial and operational results.
Under the program, the company plans to buy back shares in the open market or through private negotiations, subject to market conditions. This repurchase program has no termination date.
The new buyback program replaces the company’s previous $300 million share repurchase program. The company has repurchased the entire amount available under the earlier program.
Allscripts CEO Rick Poulton said, “Our strong balance sheet and financial performance enable us to expand our share repurchase program, which remains an attractive component of our capital deployment strategy.” (See Allscripts stock analysis on TipRanks)
On May 19, Deutsche Bank analyst George Hill increased the stock’s price target to $17.00 (2.8% downside potential) from $15.00 and reiterated a Hold rating.
Hill commented, “Allscripts’ most recent quarter reflects a streamlining of its operations and the continued cleanup of its financial presentation, both of which we expect to see reflected in the multiple that investors are willing to pay for the shares.”
Overall, the stock has a Hold consensus rating based on 3 Buys, 4 Holds, and 2 sells. The average analyst price target of $16.13 implies 7.7% downside potential from current levels. Shares have increased 23% over the past six months.
Allscripts scores a 4 of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.
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