Computer Programs & Systems, Inc. (CPSI) Agrees to Acquire Healthland Holding for $250 Million


Computer Programs & Systems, Inc. (NASDAQ:CPSI) is a company few have heard about. However, they are “dedicated to helping rural and community healtcare providers and clinicians manage population health in their communities”. This is something all of us should be thankful for on this coming Thanksgiving.

Shareholders of the stock certainly are happy today, after the company announce that they have agreed to acquire Healthland Holding for a whopping $250 million. The acquired party is a company that provides electronic health records and clinical info solutions to hundreds of hsopital customers.

The stock (CPSI) is up 20.57% or $8.3 after the positive news, hitting $48.65 per share. About 376,258 shares traded hands or 203.74% up from the average. CPSI has declined 24.97% since April 23, 2015 and is downtrending. It has underperformed by 23.85% the S&P500.

Out of 3 analysts covering Computer Progams & Systems (NASDAQ:CPSI), 0 rate it “Buy”, 0 “Sell”, while 3 “Hold”. This means 0 are positive. $45 is the highest target while $43 is the lowest. The $43.67 average target is -10.24% below today’s ($48.65) stock price. Computer Progams & Systems was the topic in 4 analyst reports since July 31, 2015 according to StockzIntelligence Inc. RBC Capital Markets maintained the stock on November 2 with “Sector Perform” rating.

The institutional sentiment decreased to 1 in Q2 2015. Its down 0.12, from 1.12 in 2015Q1. The ratio is negative, as 17 funds sold all Computer Programs & Systems, Inc. shares owned while 54 reduced positions. 13 funds bought stakes while 58 increased positions. They now own 10.92 million shares or 0.43% more from 10.88 million shares in 2015Q1.

Quantum Capital Management Llc Nj holds 2.02% of its portfolio in Computer Programs & Systems, Inc. for 118,082 shares. Hendershot Investments Inc. owns 61,641 shares or 1.72% of their US portfolio. Moreover, Sfe Investment Counsel has 1.71% invested in the company for 78,375 shares. The Alabama-based Aull & Monroe Investment Management Corp has invested 1.15% in the stock. Kayne Anderson Rudnick Investment Management Llc, a California-based fund reported 1.32 million shares.

Computer Programs and Systems, Inc. is a well-known provider of healthcare information technology solutions for rural and community hospitals, with over 650 client hospitals in 46 states and the District of Columbia. The company has a market cap of $475.02 million. The Firm provides enterprise-wide clinical management, access management, patient financial management, health information management, strategic decision support, resource planning management and enterprise application integration solutions to healthcare organizations throughout the United States. It has 25.32 P/E ratio. Additionally, CPSI provides other information technology solutions, including business management services, remote hosting, networking technologies and other related services.