JMP Securities analyst Constantine Davides has maintained their neutral stance on CCRN stock, giving a Hold rating yesterday.
Constantine Davides’s rating is based on a combination of factors influencing Cross Country Healthcare’s current market position. The company’s recent financial performance showed mixed results, with revenue slightly exceeding expectations but adjusted EBITDA falling short of estimates. This discrepancy was attributed to a decrease in gross margin and higher SG&A expenses, which impacted profitability.
Another factor contributing to the Hold rating is the ongoing merger with Aya Healthcare. While the transaction is expected to close in the second half of the year, the timeline has been extended due to additional scrutiny from the FTC. This delay, along with the current trading price of CCRN shares being below the announced merger price, suggests that the shares are fairly valued at the moment. Furthermore, challenges within the travel nursing sector add to the cautious outlook, leading to a more conservative estimate for future operating margins.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CCRN in relation to earlier this year.