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On Wednesday, JMP analysts maintained a Market Perform rating on shares of Cross Country Healthcare (NASDAQ:CCRN), a prominent staffing firm in the healthcare sector with a market capitalization of $488 million and annual revenue of $1.34 billion. The decision reflects analysts’ perspective that the stock is currently fairly valued, though InvestingPro analysis suggests slight undervaluation. The rating takes into account the extended timeline and increased scrutiny from the Federal Trade Commission (FTC) regarding Cross Country Healthcare’s impending acquisition by Aya Healthcare, the largest firm in the industry.
The analysts highlighted the challenges faced by Cross Country Healthcare due to the protracted nature of the merger process and the heightened attention from the FTC. These factors are seen as significant in evaluating the company’s stock, as they may impact the timeline and outcome of the acquisition. Despite these challenges, InvestingPro data reveals the company maintains strong financial health with a "GREAT" overall score and holds more cash than debt on its balance sheet. Subscribers can access 12+ additional ProTips and comprehensive analysis in the Pro Research Report.
Cross Country Healthcare, which specializes in providing healthcare staffing solutions, announced its acquisition by Aya Healthcare, a private company and the largest player in the staffing industry. This acquisition has been a focal point for analysts assessing the company’s stock value.
The extended merger transaction timeline and the likelihood of more rigorous FTC scrutiny are seen as key considerations for investors watching the progress of this deal. These regulatory hurdles could influence the finalization of the acquisition, which is an important event for both Cross Country Healthcare and the healthcare staffing market.
JMP’s reiteration of the Market Perform rating indicates a neutral stance on the stock, suggesting that the analysts see no immediate catalysts that would significantly change the stock’s valuation in the near term. The analysis by JMP provides investors with a measured outlook on Cross Country Healthcare’s stock as the company navigates through the acquisition process.
In other recent news, Cross Country Healthcare reported mixed results for the fourth quarter, with earnings falling short of analyst expectations while revenue slightly exceeded estimates. The company posted adjusted earnings per share of $0.04, missing the consensus estimate of $0.11. However, revenue for the quarter was $309.9 million, surpassing analyst projections of $307.8 million. This revenue, although down 25% year-over-year, was driven by strength in non-travel sectors such as Physician Staffing, Education, and Homecare. The company is also anticipating the closure of a pending transaction with Aya Healthcare in the second half of the year. Cross Country Healthcare’s gross profit margin decreased to 20.0%, a decline of 190 basis points from the previous year. The full-year revenue for 2024 was reported at $1.34 billion, marking a 33% decrease from the prior year. Despite these challenges, the company ended the quarter with $81.6 million in cash and no outstanding debt, and it repurchased over 2.4 million shares for $36.8 million in 2024.
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