Zacks Investment Research downgraded shares of Patterson Cos. (NASDAQ:PDCO) from a hold rating to a strong sell rating in a research note released on Wednesday.

According to Zacks, “In the past six months, Patterson Companies has been underperforming the broader industry with respect to price. Additionally, a disappointing estimate revision trend indicates looming concerns for the stock. Meanwhile, Patterson Companies recently posted unimpressive results for the second quarter of fiscal 2017, missing the Zacks Consensus Estimate on both counts. Unfavorable foreign exchange rate and higher operating expenses are major concerns at present. The U.S. dental products distribution industry is highly competitive, which poises a major threat to Patterson Companies. Meanwhile, consumable sales at the Dental platform of the company posted lackluster performance in the last reported quarter, which marred prospects in the niche segment. “

Several other equities research analysts also recently weighed in on PDCO. Jefferies Group reissued a hold rating on shares of Patterson Cos. in a report on Thursday, August 4th. Off Wall Street initiated coverage on Patterson Cos. in a report on Monday, August 8th. They issued a sell rating for the company. Bank of America Corp. initiated coverage on Patterson Cos. in a report on Wednesday, August 24th. They issued an underperform rating and a $44.00 price objective for the company. Robert W. Baird reissued a neutral rating and issued a $49.00 price objective (down from $51.00) on shares of Patterson Cos. in a report on Friday, August 26th. Finally, Evercore ISI reissued a hold rating and issued a $48.00 price objective (down from $49.00) on shares of Patterson Cos. in a report on Friday, August 26th. Three analysts have rated the stock with a sell rating, four have assigned a hold rating and four have issued a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $45.33.

Shares of Patterson Cos. (NASDAQ:PDCO) opened at 38.74 on Wednesday. The stock has a market cap of $3.69 billion, a price-to-earnings ratio of 17.99 and a beta of 0.97. The company has a 50-day moving average of $44.75 and a 200 day moving average of $46.63. Patterson Cos. has a one year low of $36.46 and a one year high of $50.40.

Patterson Cos. (NASDAQ:PDCO) last posted its quarterly earnings data on Tuesday, November 22nd. The company reported $0.56 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.60 by $0.04. The firm earned $1.40 billion during the quarter, compared to analyst estimates of $1.44 billion. Patterson Cos. had a net margin of 3.69% and a return on equity of 17.17%. Patterson Cos.’s revenue was up 2.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.56 earnings per share. On average, equities analysts forecast that Patterson Cos. will post $2.57 earnings per share for the current fiscal year.

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Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wells Fargo & Company MN boosted its position in Patterson Cos. by 30.5% in the third quarter. Wells Fargo & Company MN now owns 3,492,088 shares of the company’s stock valued at $160,426,000 after buying an additional 816,091 shares during the last quarter. Parnassus Investments CA boosted its position in Patterson Cos. by 11.4% in the second quarter. Parnassus Investments CA now owns 7,055,974 shares of the company’s stock valued at $337,911,000 after buying an additional 724,258 shares during the last quarter. FMR LLC boosted its position in Patterson Cos. by 70.4% in the second quarter. FMR LLC now owns 1,678,442 shares of the company’s stock valued at $80,380,000 after buying an additional 693,333 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Patterson Cos. by 460.9% in the second quarter. JPMorgan Chase & Co. now owns 802,415 shares of the company’s stock valued at $38,428,000 after buying an additional 659,350 shares during the last quarter. Finally, Perkins Investment Management LLC boosted its position in Patterson Cos. by 34.9% in the third quarter. Perkins Investment Management LLC now owns 2,165,961 shares of the company’s stock valued at $99,504,000 after buying an additional 560,168 shares during the last quarter. Hedge funds and other institutional investors own 79.77% of the company’s stock.

About Patterson Cos.

Patterson Companies, Inc is a distributor serving the dental, veterinary and rehabilitation supply markets. The Company operates through three segments: dental supply, veterinary supply and rehabilitation supply. The dental supply segment provides a range of consumable dental products, clinical and laboratory equipment, and value-added services to dentists, dental laboratories, institutions and other dental healthcare providers across North America.

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