Quality Systems (NASDAQ:QSII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Quality Systems had an unfavorable run on the bourses over the last year. Of the major concerns, intensifying competition in the HCIT markets is likely to keep the company’s margins under pressure. Further, the company expects software license and hardware revenues to remain under pressure for the remainder of the fiscal. Operating expenses are also high for Quality Systems due to acquisition-driven costs. Continued acquisition poses integration risks for the acquiring company.However, Quality Systems ended the third quarter on a positive note, wherein adjusted earnings came in line with the Zacks consensus estimate. Acquisitions have significantly expanded Quality Systems’ product line over the last couple of years. the company’s solid recurring revenue base is a key catalyst. Revenues are also expected to be benefitted from EagleDream software platform, which has been enjoying favorable market response.”

QSII has been the topic of a number of other reports. Cantor Fitzgerald reissued a “hold” rating and set a $13.00 target price on shares of Quality Systems in a report on Thursday, October 26th. SunTrust Banks reissued a “hold” rating and set a $15.00 target price on shares of Quality Systems in a report on Friday, November 17th. BidaskClub lowered Quality Systems from a “sell” rating to a “strong sell” rating in a report on Saturday, December 30th. Robert W. Baird reissued a “hold” rating and set a $15.00 target price on shares of Quality Systems in a report on Tuesday, October 17th. Finally, Jefferies Group reissued a “hold” rating and set a $14.50 target price on shares of Quality Systems in a report on Sunday, October 29th. Five equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus target price of $14.44.

Quality Systems (NASDAQ:QSII) opened at $12.55 on Monday. The firm has a market capitalization of $802.16, a P/E ratio of 44.82, a price-to-earnings-growth ratio of 2.88 and a beta of 0.73. Quality Systems has a 1 year low of $12.25 and a 1 year high of $17.74. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.19 and a current ratio of 1.19.

Quality Systems (NASDAQ:QSII) last posted its quarterly earnings results on Thursday, January 25th. The company reported $0.15 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.15. The firm had revenue of $131.70 million for the quarter, compared to analyst estimates of $130.63 million. Quality Systems had a return on equity of 12.08% and a net margin of 3.39%. The business’s quarterly revenue was up 3.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.23 EPS. sell-side analysts forecast that Quality Systems will post 0.56 earnings per share for the current fiscal year.

Hedge funds have recently bought and sold shares of the stock. LS Investment Advisors LLC increased its holdings in shares of Quality Systems by 404.4% during the 4th quarter. LS Investment Advisors LLC now owns 8,777 shares of the company’s stock worth $119,000 after acquiring an additional 7,037 shares during the last quarter. Koch Industries Inc. bought a new stake in Quality Systems in the 4th quarter valued at $148,000. Piedmont Investment Advisors LLC bought a new stake in Quality Systems in the 2nd quarter valued at $173,000. Victory Capital Management Inc. bought a new stake in Quality Systems in the 3rd quarter valued at $199,000. Finally, Macquarie Group Ltd. bought a new stake in Quality Systems in the 3rd quarter valued at $220,000. 71.80% of the stock is currently owned by institutional investors and hedge funds.

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About Quality Systems

Quality Systems, Inc (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices.

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