AMN Healthcare Receives Mixed Analyst Ratings with $23.08 Target

AMN Healthcare Services Inc (NYSE:AMN) has garnered a consensus price target of $23.08 from analysts, reflecting a cautious outlook from the financial community. The company currently holds a “Hold” recommendation from nine research firms, with three advising a sell, two recommending hold, and four suggesting a buy.

Analysts have expressed varied opinions on AMN Healthcare’s stock performance recently. BMO Capital Markets lowered its price target from $27.00 to $22.00, while maintaining an “outperform” rating. This adjustment came in a report released on August 11, 2023. Meanwhile, Weiss Ratings reiterated a “sell (d-)” rating on October 8, 2023. In contrast, Truist Financial raised its price target from $20.00 to $24.00 and assigned a “buy” rating on October 13, 2023. On October 27, 2023, Zacks Research downgraded AMN Healthcare from a “hold” to a “strong sell” rating. Finally, UBS Group increased its price objective from $18.00 to $20.50, labeling the stock as “neutral.”

Quarterly Performance Overview

AMN Healthcare reported its quarterly earnings on November 6, 2023. The company achieved earnings per share (EPS) of $0.39, surpassing analysts’ expectations of $0.19 by a significant margin of $0.20. Revenue for the quarter reached $634.5 million, exceeding the consensus estimate of $618.08 million. Despite this positive revenue outcome, AMN’s net margin stood at a negative 10.75%, although it reported a positive return on equity of 11.09%. Year-over-year, revenue saw a decline of 7.7%, with the previous year’s EPS recorded at $0.61. The company has set its guidance for Q4 2025 EPS at 1.33.

Institutional Investor Activity

Recent trading activity indicates a notable shift among institutional investors regarding AMN Healthcare. Thompson Investment Management Inc. increased its stake by 5.0% in the second quarter, now holding 324,227 shares valued at approximately $6.7 million after acquiring an additional 15,420 shares. Millennium Management LLC significantly boosted its holdings by 137.5% in the first quarter, now owning 1,097,482 shares valued at about $26.8 million after adding 635,296 shares.

Other notable changes include Teacher Retirement System of Texas, which acquired a new position worth $368,000, and Envestnet Asset Management Inc., which raised its holdings by 13.7%, now owning 79,298 shares worth approximately $1.94 million. Principal Financial Group Inc. also increased its stake by 2.2% during the first quarter, holding 243,164 shares valued at about $5.9 million. Currently, institutional investors collectively own 99.23% of AMN Healthcare’s stock.

AMN Healthcare Services, located in the United States, specializes in healthcare workforce solutions and staffing services. The company operates through three segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The Nurse and Allied Solutions segment includes services such as travel nurse staffing and labor disruption staffing.

In summary, while AMN Healthcare Services has received a mixed bag of analyst ratings and price targets, its recent quarterly performance showcases some resilience. The active involvement of institutional investors further highlights the stock’s potential as it navigates a challenging market landscape.