Interactive Brokers shares jump as it secures spot in S&P 500
On Wednesday, UBS analysts maintained their Neutral rating on AMN Healthcare shares (NYSE:AMN), with a steadfast price target of $30.00. Currently trading near its 52-week low of $22.46, InvestingPro analysis suggests the stock is undervalued. AMN Healthcare’s strategy remains centered on debt reduction throughout 2025, following a significant repayment of approximately $250 million on its bank debt revolver in 2024. The company had previously negotiated terms to increase the maximum leverage covenant on its revolver to 4.5x, which is in effect until the end of 2025.
AMN Healthcare concluded 2024 with a leverage ratio of 3.0x, based on trailing twelve months adjusted EBITDA of $293.6 million over Net Debt. With a debt-to-equity ratio of 1.55x and strong free cash flow yield of 26%, the company maintains financial flexibility. Despite an anticipated increase in this ratio in 2025 due to a decrease in trailing-twelve-months EBITDA, the company is expected to maintain a sufficient margin to comply with its debt covenants without difficulty.
The company reiterated its typical conversion ratio of adjusted EBITDA (minus CAPEX) to free cash flow, which is around 60%. It is projected that the majority of this cash flow will be allocated to further debt reduction. Get deeper insights into AMN Healthcare’s financial health and growth prospects with InvestingPro, which offers exclusive analysis and 6 additional ProTips for informed investment decisions. While AMN Healthcare’s management acknowledged the company’s strong balance sheet, they indicated that the financial position is not yet at a stage where pursuing major acquisitions would be likely.
In other recent news, AMN Healthcare reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an adjusted EPS of $0.75, significantly higher than the forecasted $0.49. The company’s revenue for the quarter was $735 million, exceeding both JMP Securities’ projection of $691 million and the consensus estimate of $694.36 million. Despite a 10% year-over-year decline in revenue, the results still outperformed expectations due to higher-than-expected strike revenue, which also positively impacted adjusted EBITDA. JMP Securities subsequently revised its price target for AMN Healthcare to $33 from $34 but maintained a Market Outperform rating, indicating continued confidence in the company despite the financial adjustments.
Benchmark analyst firm maintained a Hold rating on AMN Healthcare, reflecting cautious optimism as the company navigates a stabilizing macroeconomic environment. The Hold rating suggests that the stock is currently valued appropriately, with no significant short-term drivers expected to change its value. The company’s performance has shown resilience, with management optimistic about positive sequential trends in the latter half of 2025 as international headwinds ease. Additionally, AMN Healthcare has been actively launching new technology platforms to enhance service delivery, which may contribute to its strategic positioning in the competitive healthcare staffing market.
Overall, AMN Healthcare’s recent financial performance and strategic initiatives have garnered mixed reactions from analysts, with some maintaining a cautious stance while others express confidence in the company’s long-term potential.
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