AmerisourceBergen (ABC) Stock Rating Upgraded by Zacks Investment Research
Zacks Investment Research upgraded shares of AmerisourceBergen (NYSE:ABC) from a hold rating to a buy rating in a research report report published on Thursday morning. The firm currently has $111.00 target price on the stock.
According to Zacks, “Despite trading below the broader industry over the last year, AmerisourceBergen is expected to benefit from generics growth. The company has been actively pursuing acquisitions to strengthen its core areas. The recent takeover of H.D. Smith, the largest independent wholesaler in the United States, is worth a mention in this regard. The deal is worth for $815 million. Solid performance in the Pharmaceutical Distribution Segment is also a positive. On the flip side, AmerisourceBergen faces headwinds due to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Furthermore, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. Cutthroat competition in niche space also adds to the woes. “
A number of other brokerages also recently issued reports on ABC. Needham & Company LLC increased their price target on AmerisourceBergen from $86.00 to $88.00 and gave the stock a buy rating in a research report on Wednesday, November 22nd. Robert W. Baird reiterated a buy rating and set a $96.00 price target on shares of AmerisourceBergen in a research report on Monday, November 6th. Mizuho set a $92.00 price target on AmerisourceBergen and gave the stock a hold rating in a research report on Tuesday, October 24th. ValuEngine upgraded AmerisourceBergen from a hold rating to a buy rating in a research report on Tuesday, October 31st. Finally, Evercore ISI assumed coverage on AmerisourceBergen in a research report on Thursday, January 4th. They set an outperform rating and a $105.00 price target on the stock. One investment analyst has rated the stock with a sell rating, six have issued a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of Buy and an average price target of $96.39.
AmerisourceBergen (NYSE:ABC) last issued its earnings results on Thursday, November 2nd. The company reported $1.33 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.01. AmerisourceBergen had a return on equity of 56.29% and a net margin of 0.27%. The firm had revenue of $39.12 billion for the quarter, compared to the consensus estimate of $40.10 billion. During the same quarter in the prior year, the business earned $1.30 earnings per share. The company’s revenue was up 4.2% compared to the same quarter last year. research analysts expect that AmerisourceBergen will post 6.24 EPS for the current fiscal year.
In other news, insider Dale Danilewitz sold 1,857 shares of the firm’s stock in a transaction that occurred on Monday, November 13th. The stock was sold at an average price of $74.69, for a total value of $138,699.33. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Richard W. Gochnauer sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 10th. The shares were sold at an average price of $96.54, for a total value of $193,080.00. Following the completion of the transaction, the director now owns 12,947 shares in the company, valued at approximately $1,249,903.38. The disclosure for this sale can be found here. In the last 90 days, insiders sold 203,823 shares of company stock worth $17,145,148. Company insiders own 27.40% of the company’s stock.
Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in shares of AmerisourceBergen by 2.0% in the second quarter. Vanguard Group Inc. now owns 15,653,245 shares of the company’s stock valued at $1,479,701,000 after purchasing an additional 304,628 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in shares of AmerisourceBergen by 107.3% in the third quarter. JPMorgan Chase & Co. now owns 5,363,429 shares of the company’s stock valued at $434,385,000 after purchasing an additional 2,776,287 shares during the last quarter. Wells Fargo & Company MN increased its holdings in shares of AmerisourceBergen by 11.4% in the third quarter. Wells Fargo & Company MN now owns 3,726,377 shares of the company’s stock valued at $308,358,000 after purchasing an additional 381,936 shares during the last quarter. FIL Ltd increased its holdings in shares of AmerisourceBergen by 14.4% in the second quarter. FIL Ltd now owns 3,477,157 shares of the company’s stock valued at $328,696,000 after purchasing an additional 437,132 shares during the last quarter. Finally, Harding Loevner LP increased its holdings in shares of AmerisourceBergen by 89.6% in the third quarter. Harding Loevner LP now owns 3,166,794 shares of the company’s stock valued at $134,939,000 after purchasing an additional 1,496,761 shares during the last quarter. 67.92% of the stock is owned by hedge funds and other institutional investors.
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AmerisourceBergen Company Profile
AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers.
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