Shares of Medidata Solutions (Nasdaq: MDSO), the leading cloud analytic software company for the biotech research space, rallied after beating earnings expectations by one cent and reaffirming its forward guidance.    The company reported results of Q2 EPS of $0.24, versus expectations of $0.23. Revenue for the quarter came in at $114.6 million versus the consensus estimate of $112.39 million.

According to the company’s press release, “second quarter results” came “from strong execution across the Company and reflect Medidata’s momentum in driving adoption of our integrated cloud platform,” CEO and Chairman Tarek Sherif added:  “With demand growing for Medidata CTMS, Payments, Balance and mHealth, as well as data analytics, we’re building on the success of the broadest platform in the industry, while continually delivering greater value to our clients. Today, more than ever, our ability to generate sustainable, long-term growth is driven by the large opportunity created by our clients’ innovation, scientific advances and our mission of powering smarter treatments to improve healthcare. It’s clear that Medidata is becoming the strategic technology partner to a massive and important transformation in life sciences and healthcare driven by digital automation in drug development.”

I recommended the shares on 3/7/16 at $36, and today the stock was trading at $50.38 in early action.  I now recommend continuing to hold the stock but raising the sell stop from $41 to $45.

Disclosure: I own shares in MDSO.