PINC Surpasses Analyst Target Price: What’s Next for Investors?
Recently, shares of Premier Inc (Symbol: PINC) have surpassed the average analyst 12-month target price of $19.94, trading at $19.99 per share. When a stock meets its target, analysts typically have two choices: they can either downgrade on valuation or raise the target price to a higher level. This decision may depend on the underlying business developments contributing to the stock’s price increase. If the company’s outlook is promising, it may signal a need to adjust the target higher.
Currently, there are eight different analyst targets within the Zacks coverage universe for Premier Inc. However, this average represents a mathematical mean. Some analysts predict lower targets, with one projecting a price of $16.00, while another has set a target as high as $24.00, resulting in a standard deviation of $2.484.
The rationale for examining the average PINC target price lies in the “wisdom of crowds.” By aggregating insights from multiple analysts, investors can form a more balanced view than relying on a single expert’s opinion. Now that PINC has crossed above the average target price of $19.94 per share, this development prompts investors to reevaluate. They must consider whether $19.94 is merely a waypoint toward a higher target or if the valuation has become stretched, suggesting it may be time to cash in some gains.
| Recent PINC Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 0 | 0 | 0 | 0 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 8 | 8 | 8 | 8 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 3.11 | 3.11 | 3.11 | 3.11 |
The average rating listed in the final row of the table ranges from 1 to 5, with 1 indicating Strong Buy and 5 indicating Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
