| Over a week ago | ||||
Baird analyst Matthew… Baird analyst Matthew Gillmor downgraded Vocera Communications (VCRA) to Neutral from Outperform with a $40 price target. The analyst cites valuation for the downgrade following the stock's recent appreciation. For healthcare technology, Gillmor continues to favor "high-growth disruptive niches" and believes revenue cycle names like R1 RCM (RCM) and Phreesia (PHR) as well as telehealth names Teladoc (TDOC) and SOC Telemed (TLMD) are the most compelling at the moment. | ||||
R1 RCM announced that it… R1 RCM announced that it has entered into an agreement with TCP-ASC ACHI Series LLLP, an investment vehicle jointly owned by Ascension Health Alliance and investment funds affiliated with TowerBrook Capital Partners, for the conversion of all of the 8.00% Series A Convertible Preferred Stock held by the joint investment vehicle to common stock. The Preferred Stock, issued in February 2016, was entitled to 8.0% annual payment-in-kind ("PIK") dividends until February 2023, followed by perpetual 8.0% annual cash dividends, and was not redeemable by R1. As part of the conversion agreement, the joint investment vehicle will receive approximately 139.3M shares of common stock and a one-time $105M cash payment. R1 intends to fund the cash payment with cash from its balance sheet. Pro forma for the conversion of the Preferred Stock, Ascension and TowerBrook, through the joint investment vehicle, will collectively own approximately 54%1 of R1's outstanding shares of common stock. The transaction is expected to close later this month, and all the shares of common stock to be issued as part of the transaction will be subject to a one-year lock up scheduled to expire in 2022. Ascension and TowerBrook will retain their seats on R1's Board of Directors. | ||||
| Over a month ago | ||||
RBC Capital analyst Sean… RBC Capital analyst Sean Dodge raised the firm's price target on R1 RCM to $27 from $20 and keeps an Outperform rating on the shares after holding investor meetings with its CEO and CFO. The analyst notes that the discussion revolved around the "increasingly favorable" macro tailwinds, the company's growing pipeline of opportunities inside and outside of its customer base, as well as the management's ongoing tech investments and "significant" remaining margin runway. | ||||
Conference call with CEO… Conference call with CEO Flanagan and CFO Wilson will be held on December 2 at 11 am hosted by SVB Leerink. | ||||
Conference call with CEO… Conference call with CEO Flanagan and CFO Wilson will be held on December 2 at 11 am hosted by SVB Leerink. | ||||
Conference call with CEO… Conference call with CEO Flanagan and CFO Wilson will be held on December 2 at 11 am hosted by SVB Leerink. | |
Consensus $1.24B. Sees… Consensus $1.24B. Sees adjusted EBITDA $230M-$240M. | |
Reports Q3 revenue… Reports Q3 revenue $307.2M, consensus $295.38M. "I am incredibly proud of the team's continued dedication in delivering outstanding performance to our customers during these challenging times. Given our learnings over the past several months, we are very well prepared to help customers navigate challenges presented by the pandemic going forward," said Joe Flanagan, President and Chief Executive Officer of R1. "We continue to see strong demand for our solutions and are pleased to have signed end-to-end agreements covering $5 billion in annual net patient revenue to date in 2020, well ahead of the $3 billion target we set at the start of the year." | |
KeyBanc analyst Donald… KeyBanc analyst Donald Hooker raised the firm's price target on R1 RCM to $24 from $17, while reiterating an Overweight rating on the shares based on a newly visible path for the company to reach $600M of run-rate adjusted EBITDA in the coming years. Last week, RCM signed a 10-year contract to manage about $2.8B of net patient revenue at LifePoint Health, and Hooker sees another $10.5B of NPR from potential expansions at LifePoint Health and Intermountain Health. | |
R1 RCM and LifePoint… R1 RCM and LifePoint Health have entered into a new revenue cycle management agreement that will make R1 the exclusive revenue cycle management partner for more than one-third of LifePoint hospitals. The comprehensive partnership is designed to enhance patient experience and streamline operations to meet the evolving needs of the health system now and into the future for the communities LifePoint serves. |