U.S. stock futures edge higher; earnings season continues
Investing.com - UBS maintained its Neutral rating and $25.50 price target on AMN Healthcare (NYSE:AMN) following the company’s announcement of a technology asset sale. The stock, currently trading at $21.87, appears undervalued according to InvestingPro analysis, with analysts setting targets between $24 and $33.
AMN Healthcare disclosed on July 2 that it sold its Smart Square Scheduling technology to symplr, a healthcare operations software provider, for a total of $75 million. The transaction structure includes $65 million paid at closing with the remaining $10 million due at the end of 2026. This sale represents approximately 9% of AMN’s current market capitalization of $837 million. InvestingPro data shows the company maintains a strong financial health score, with particularly robust cash flow metrics.
The healthcare staffing company also established a commercial partnership with symplr as part of the agreement. This collaboration will combine AMN’s workforce advisory, planning, and analytics capabilities with symplr’s software solutions.
UBS analyst AJ Rice noted that the partnership aims to enhance efficiency for health systems by integrating AMN’s workforce expertise with symplr’s operational software platform.
The Smart Square Scheduling technology sale represents a focused divestiture for AMN Healthcare as the company continues to adjust its technology and service offerings in the healthcare staffing and workforce solutions market.
In other recent news, AMN Healthcare reported its Q1 2025 financial results, with revenue reaching $690 million, surpassing the high-end guidance by 10%. The company’s adjusted EPS was $0.45, a decrease from $0.97 in the previous year, yet it exceeded market expectations. Additionally, AMN Healthcare achieved a debt reduction of $60 million during this period. In a strategic move, symplr acquired AMN Healthcare’s Smart Square scheduling software, aiming to enhance workforce management capabilities through AI-driven scheduling technology. Meanwhile, Moody’s downgraded AMN Healthcare’s corporate family rating to Ba3 from Ba2, citing deteriorating credit metrics and a structural decline in revenues due to reduced demand in the nurse staffing industry. The outlook for the company was revised to negative from stable. Furthermore, Celia Huber, a Senior Partner at McKinsey & Company, joined AMN Healthcare’s board of directors, bringing over 30 years of experience in advising healthcare systems on strategy and performance. These developments reflect the company’s ongoing efforts to navigate the complexities of the healthcare industry.
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