The stock price of physician revenue cycle management services and software vendor athenahealth Inc. inched up 3 percent during morning trading on Dec. 16 after a sharp drop the previous day following a profit warning for 2012.
Athenahealth's stock fell up to 29 percent on Dec. 15 and closed down 15 percent in extraordinarily heaving trading. More than 10.4 million shares traded hands compared with 553,000 a day before. The Watertown, Mass.-based vendor announced profit expectations of 85 cents to 97 cents per share in 2012 on revenue of $410 million to $430 million. Industry analysts had expected profit of $1.16 for next year. Athenahealth reiterated its latest 2011 financial guidance issued in October of 78 cents to 85 cents per share on revenue of $320 million to $325 million.
According to Forbes, two investment firms--Oppenheimer and Leerink Swann--upgraded the company's stock. Leerink Swann noted the company still expected revenue growth of 30 percent and set a price range of $59 to $60 per share, about where the stock was before Dec. 15 when it closed at $49.04. But Morgan Stanley reiterated an "Underweight" rating with a $35 target, the magazine notes.
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