Embecta (NASDAQ:EMBC) Trading Down 5% – What’s Next?

Embecta Corp. (NASDAQ:EMBC)’s stock price was down 5% during mid-day trading on Monday . The stock traded as low as $10.10 and last traded at $10.3160. Approximately 123,935 shares changed hands during trading, a decline of 81% from the average daily volume of 643,474 shares. The stock had previously closed at $10.86.

Analyst Upgrades and Downgrades

EMBC has been the subject of a number of research reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of Embecta in a research report on Wednesday, January 21st. Wall Street Zen cut Embecta from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Finally, BTIG Research restated a “buy” rating and issued a $25.00 target price on shares of Embecta in a research note on Friday, February 6th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $18.50.

Embecta Price Performance

The stock has a market capitalization of $596.64 million, a price-to-earnings ratio of 4.25 and a beta of 1.11. The stock has a 50-day moving average of $11.65 and a 200 day moving average of $12.94.

Embecta (NASDAQ:EMBC) last issued its quarterly earnings results on Thursday, February 5th. The company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.67 by $0.04. The company had revenue of $261.20 million during the quarter, compared to analysts’ expectations of $258.07 million. Embecta had a net margin of 12.92% and a negative return on equity of 26.66%. Embecta’s revenue was down .3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.65 EPS. Embecta has set its FY 2026 guidance at 2.800-3.00 EPS. Sell-side analysts anticipate that Embecta Corp. will post 2.85 earnings per share for the current fiscal year.

Embecta Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Friday, February 27th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, February 27th. This represents a $0.60 annualized dividend and a dividend yield of 6.0%. Embecta’s dividend payout ratio is currently 25.32%.

Hedge Funds Weigh In On Embecta

Large investors have recently added to or reduced their stakes in the company. American Century Companies Inc. raised its position in Embecta by 36.3% in the 2nd quarter. American Century Companies Inc. now owns 5,195,948 shares of the company’s stock valued at $50,349,000 after buying an additional 1,382,537 shares during the last quarter. Jefferies Financial Group Inc. boosted its holdings in Embecta by 134.3% during the second quarter. Jefferies Financial Group Inc. now owns 1,342,713 shares of the company’s stock worth $13,011,000 after purchasing an additional 769,713 shares during the last quarter. Ameriprise Financial Inc. grew its position in Embecta by 439.1% in the second quarter. Ameriprise Financial Inc. now owns 709,849 shares of the company’s stock valued at $6,878,000 after purchasing an additional 578,174 shares in the last quarter. SG Americas Securities LLC acquired a new stake in Embecta in the 4th quarter valued at $5,178,000. Finally, UBS Group AG lifted its position in Embecta by 200.8% during the 4th quarter. UBS Group AG now owns 630,994 shares of the company’s stock worth $7,496,000 after buying an additional 421,254 shares in the last quarter. Institutional investors own 93.83% of the company’s stock.

About Embecta

Embecta Corp (NASDAQ: EMBC) is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.