Perrigo (NYSE:PRGO) Shares Gap Down Following Weak Earnings

Shares of Perrigo Company plc (NYSE:PRGO) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $14.41, but opened at $13.30. Perrigo shares last traded at $13.7290, with a volume of 906,929 shares trading hands.

The company reported $0.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by ($0.03). The firm had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.09 billion. Perrigo had a negative net margin of 1.21% and a positive return on equity of 9.16%. The company’s revenue for the quarter was down 2.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.93 earnings per share. Perrigo has set its FY 2026 guidance at 2.250-2.550 EPS.

Perrigo Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Monday, March 2nd will be issued a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 8.4%. The ex-dividend date of this dividend is Monday, March 2nd. Perrigo’s payout ratio is presently -305.26%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on PRGO. Weiss Ratings reissued a “sell (d+)” rating on shares of Perrigo in a research note on Monday, December 22nd. Canaccord Genuity Group reduced their price target on shares of Perrigo from $40.00 to $20.00 and set a “buy” rating on the stock in a research report on Thursday, November 6th. JPMorgan Chase & Co. lowered their price objective on shares of Perrigo from $20.00 to $18.00 and set a “neutral” rating for the company in a research report on Monday, December 15th. Argus raised shares of Perrigo to a “hold” rating in a research note on Wednesday, January 14th. Finally, Zacks Research raised shares of Perrigo from a “strong sell” rating to a “hold” rating in a research note on Friday, February 13th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $20.33.

Institutional Investors Weigh In On Perrigo

A number of institutional investors and hedge funds have recently modified their holdings of PRGO. Geneos Wealth Management Inc. boosted its stake in Perrigo by 439.1% in the first quarter. Geneos Wealth Management Inc. now owns 965 shares of the company’s stock valued at $27,000 after acquiring an additional 786 shares during the last quarter. Huntington National Bank raised its position in shares of Perrigo by 237.8% during the 2nd quarter. Huntington National Bank now owns 1,054 shares of the company’s stock valued at $28,000 after acquiring an additional 742 shares during the last quarter. Hantz Financial Services Inc. lifted its stake in shares of Perrigo by 101.0% in the 2nd quarter. Hantz Financial Services Inc. now owns 1,234 shares of the company’s stock valued at $33,000 after purchasing an additional 620 shares during the period. Kestra Investment Management LLC boosted its position in shares of Perrigo by 57.1% in the 2nd quarter. Kestra Investment Management LLC now owns 1,766 shares of the company’s stock worth $47,000 after purchasing an additional 642 shares during the last quarter. Finally, Jones Financial Companies Lllp grew its stake in shares of Perrigo by 89.1% during the third quarter. Jones Financial Companies Lllp now owns 1,778 shares of the company’s stock worth $38,000 after purchasing an additional 838 shares during the period. 95.91% of the stock is owned by institutional investors.

Perrigo Stock Down 4.7%

The business has a fifty day moving average of $14.39 and a 200 day moving average of $17.57. The company has a quick ratio of 1.44, a current ratio of 2.51 and a debt-to-equity ratio of 0.81. The firm has a market cap of $1.89 billion, a P/E ratio of -35.98, a P/E/G ratio of 1.31 and a beta of 0.39.

Perrigo Company Profile

Perrigo Company plc is a global healthcare supplier specializing in over-the-counter (OTC) and self-care products, as well as generic prescription pharmaceuticals and active pharmaceutical ingredients. The company develops, manufactures and distributes a broad array of consumer health products, including analgesics, vitamins and supplements, digestive health remedies, topical treatments, and infant formulas. Perrigo’s focus on private-label solutions has made it a leading partner for retailers and pharmacy chains seeking high-quality, value-oriented alternatives to branded medications and health supplements.

Organized across three principal business segments—Consumer Healthcare, Prescription Pharmaceuticals and Active Pharmaceutical Ingredients—Perrigo’s operations span research and development, manufacturing, quality assurance and global distribution.