Is MAXIMUS, Inc. (MMS) Finding Support or Hitting Resistance?

It has been reported that multiple insider activity took place at MAXIMUS, Inc. (MMS). Director BELIVEAU RUSSELL A sold 1,000 shares for $35,817 in transaction occurred on 2019/04/01. After making this transaction, Director owns a direct stake of shares, worth $2,557,692, as per the last closing price. On 2019/03/14 MONTONI RICHARD A, Vice Chairman at MMS, dumped 35,000 shares at an average price of $70.97 per share. The selling total is valued at $27,840,902.

Director, LEDERER PAUL R had divested 6,715 shares for $64,499 through a trade on 2019/02/13. Following this activity, the insider holds 2 shares worth $4,605,874 as of recent close.

Victory Portfolios-Sycamore Established Value Fund revealed as top hedge fund owner in MAXIMUS, Inc. (MMS) with a stake of over 2.24M MMS shares as of October 30, with a market value of approx. $145.85M as of today. The second largest holder, iShares Core S&P Midcap ETF, with 1.84M shares which equates to $130.36M worth of the stock. At third is Vanguard Small-Cap Index Fund, which stood pat with 1.64M shares, a 2.37% position in MAXIMUS, Inc., worth $106.83M. The insider holding in stood at 0.7% while institutions hold 97.9%.

MAXIMUS, Inc. (NYSE:MMS) dropped -1.99% in recent trade and currently has a stock-market value of $4.52B. The shares finished at $71.41, after trading as low as $71.11 earlier in the session. It hit an intraday high Monday at $72.7. Trading activity significantly improved as the volume at ready counter increased to 369,304 shares versus 274,430 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 328,544 shares. The stock is now 19.02% above against its bear-market low of $60 on November 20, 2018. It has retreated -3.88% since it’s 52-week high of $74.18 reached in May. Now the market price is up 14.37% on the year and up 9.71% YTD.

MMS stock’s 50 day simple moving average (SMA 50) price is $71.36 and its 200-day simple moving average (SMA 200) price is $67.87. The company’s stock currently has a total float of 62.93M shares. Its weekly volatility is hovering around 2.35% and felt 1.57% volatility in price over a month. On the upside, the share price will test short term resistance at around $72.37. On a downside, the stock is likely to find some support, which begins at $70.78. The failure to get near-term support could push it to $70.15.

It had seen a positive analyst call from First Analysis Sec, which upgraded the stock from Equal-Weight to Overweight on May 08. Analysts at Maxim Group, maintained the company shares at Hold on February 08 but switched target price from $66 to $69. The stock lost favor of KeyBanc Capital Mkts analysts who expressed their lack of confidence in it using a downgrade from Overweight to Sector Weight on May 25. Jefferies analysts came out with bearish views on May 05 when the call was made. They think the stock is now Hold compared to to their prior call for Buy.

When looking at valuations, MAXIMUS, Inc. (MMS) has a cheap P/E of 19.56x as compared to industry average of 20.17x. Moreover, it trades for 17.57 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.95x price/book and 1.77x price/sales. Compared to others, MAXIMUS, Inc. is in a different league with regards to profitability, having net margins of 8.8%. To put some perspective around this, the industry’s average net margin is 7.46%. MMS’s ROE is 20.3%, which is also considerably better than the industry’s ROE of 12.76%. It’s also very liquid in the near term, with a current ratio of 2.3. The stock has a debt/capital of 0.07.

Shares of MMS have gained 0.7% since the company’s most recent earnings report. Over the past 12 fiscal quarters, MAXIMUS, Inc. (NYSE:MMS) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. Revenue for the recent quarter stood at $736.52 million, up 20% on last year and below the $761.2 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $744.73 million to $774.64 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.87 to $0.98, against the 0 reported a year ago.