The Advisory Board Company (ABCO) Shares Gap Down After Earnings Miss

The Advisory Board Company (NASDAQ:ABCO)’s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $53.30, but opened at $52.05. The Advisory Board shares last traded at $50.90, with a volume of 2,013,701 shares trading hands.

The business services provider reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.32 by $0.08. The Advisory Board had a return on equity of 12.69% and a net margin of 13.65%. The firm had revenue of $200.30 million for the quarter, compared to analysts’ expectations of $196.16 million. During the same quarter last year, the firm posted $0.46 earnings per share. The firm’s revenue for the quarter was up 1.0% compared to the same quarter last year.

A number of analysts recently weighed in on the stock. Piper Jaffray Companies set a $51.00 target price on shares of The Advisory Board and gave the stock a “hold” rating in a report on Thursday, August 10th. Credit Suisse Group boosted their price target on shares of The Advisory Board from $54.00 to $55.00 and gave the stock an “outperform” rating in a research note on Friday, May 5th. Robert W. Baird reissued an “outperform” rating and issued a $65.00 price target (up previously from $57.00) on shares of The Advisory Board in a research note on Sunday, July 9th. Oppenheimer Holdings, Inc. reissued an “outperform” rating and issued a $56.00 price target (up previously from $53.00) on shares of The Advisory Board in a research note on Thursday, August 10th. Finally, BidaskClub cut shares of The Advisory Board from a “hold” rating to a “sell” rating in a research note on Saturday, August 5th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the company. The Advisory Board currently has an average rating of “Hold” and an average price target of $51.42.

A number of hedge funds have recently made changes to their positions in ABCO. Bank of Nova Scotia increased its stake in shares of The Advisory Board by 1,366.6% in the second quarter. Bank of Nova Scotia now owns 214,635 shares of the business services provider’s stock valued at $11,054,000 after buying an additional 200,000 shares during the period. Cubist Systematic Strategies LLC purchased a new stake in shares of The Advisory Board during the second quarter valued at approximately $221,000. York Capital Management Global Advisors LLC purchased a new stake in shares of The Advisory Board during the second quarter valued at approximately $12,192,000. State Street Corp increased its stake in shares of The Advisory Board by 6.5% in the second quarter. State Street Corp now owns 831,642 shares of the business services provider’s stock valued at $42,829,000 after buying an additional 50,912 shares during the period. Finally, Janus Henderson Group PLC purchased a new stake in shares of The Advisory Board during the second quarter valued at approximately $139,617,000.

The company’s 50 day moving average is $54.58 and its 200 day moving average is $49.96. The stock has a market cap of $2.10 billion, a P/E ratio of 19.60 and a beta of 1.33.

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The Advisory Board Company Profile

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services.

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