Mallinckrodt (MNK) Stock Rating Upgraded by Zacks Investment Research
Mallinckrodt (NYSE:MNK) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Mallinckrodt is selling its hemostasis products for Baxter. The company aims to focus better on its specialty pharmaceutical business after having sold its Nuclear Imaging business.Mallinckrodt is facing challenging conditions as lead drug Acthar sales declined on volume while weaknesses in the generics segment persist. Acthar declined as specialty drugs face payer environment and the decline is expected to continue in the fourth quarter as well. The company's generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. Shares of the company have underperformed the industry in the last six months. A U.S. District Court recently invalidated 11 patents covering its second-largest product Inomax. As a result, Mallinckrodt is looking to diversify its portfolio with the recently announced Sucampo acquisition and counter the decline in existing drugs.”
Several other research firms also recently commented on MNK. ValuEngine raised shares of Mallinckrodt from a “hold” rating to a “buy” rating in a research note on Monday, October 2nd. Cantor Fitzgerald set a $52.00 price target on shares of Mallinckrodt and gave the stock a “buy” rating in a research note on Monday, October 2nd. Piper Jaffray Companies reaffirmed a “buy” rating and issued a $67.00 price target on shares of Mallinckrodt in a research note on Thursday, October 5th. Canaccord Genuity downgraded shares of Mallinckrodt from a “buy” rating to a “hold” rating and reduced their price target for the stock from $77.00 to $40.00 in a research note on Wednesday, October 4th. Finally, Mizuho downgraded shares of Mallinckrodt from a “buy” rating to a “neutral” rating and reduced their price target for the stock from $70.00 to $40.00 in a research note on Wednesday, September 13th. Two research analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $44.99.
Shares of Mallinckrodt (NYSE:MNK) traded down $0.51 on Tuesday, hitting $22.39. 3,094,700 shares of the stock traded hands, compared to its average volume of 2,944,880. Mallinckrodt has a 1-year low of $19.00 and a 1-year high of $55.32. The stock has a market capitalization of $2,140.00, a P/E ratio of -1,119.50, a P/E/G ratio of 0.43 and a beta of 1.30. The company has a current ratio of 1.38, a quick ratio of 1.05 and a debt-to-equity ratio of 1.08.
Mallinckrodt (NYSE:MNK) last announced its earnings results on Tuesday, November 7th. The company reported $1.97 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.80 by $0.17. Mallinckrodt had a net margin of 11.43% and a return on equity of 14.79%. The business had revenue of $793.90 million for the quarter, compared to the consensus estimate of $808.93 million. During the same quarter in the prior year, the firm posted $2.04 earnings per share. The business’s revenue for the quarter was down 10.5% on a year-over-year basis. sell-side analysts forecast that Mallinckrodt will post 7.21 EPS for the current year.
In other Mallinckrodt news, VP Steven J. Romano bought 2,000 shares of the business’s stock in a transaction on Monday, November 13th. The shares were acquired at an average price of $21.96 per share, with a total value of $43,920.00. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Mark Trudeau bought 5,000 shares of the business’s stock in a transaction on Friday, November 10th. The shares were acquired at an average cost of $22.28 per share, for a total transaction of $111,400.00. The disclosure for this purchase can be found here. Insiders have acquired a total of 30,460 shares of company stock worth $659,486 in the last three months. Insiders own 0.53% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Shelton Capital Management bought a new stake in shares of Mallinckrodt in the 3rd quarter valued at about $205,000. Ameritas Investment Partners Inc. boosted its holdings in shares of Mallinckrodt by 1,051.7% in the 3rd quarter. Ameritas Investment Partners Inc. now owns 29,655 shares of the company’s stock valued at $1,218,000 after buying an additional 27,080 shares in the last quarter. California Public Employees Retirement System boosted its holdings in shares of Mallinckrodt by 11.4% in the 3rd quarter. California Public Employees Retirement System now owns 263,970 shares of the company’s stock valued at $9,865,000 after buying an additional 26,970 shares in the last quarter. Janney Montgomery Scott LLC boosted its holdings in shares of Mallinckrodt by 15.5% in the 3rd quarter. Janney Montgomery Scott LLC now owns 32,611 shares of the company’s stock valued at $1,219,000 after buying an additional 4,369 shares in the last quarter. Finally, Cubist Systematic Strategies LLC boosted its holdings in shares of Mallinckrodt by 748.1% in the 3rd quarter. Cubist Systematic Strategies LLC now owns 7,989 shares of the company’s stock valued at $299,000 after buying an additional 7,047 shares in the last quarter. 97.35% of the stock is currently owned by institutional investors and hedge funds.
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Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs.
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