Zacks Investment Research upgraded shares of Mallinckrodt (NYSE:MNK) from a strong sell rating to a hold rating in a report released 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.”
MNK has been the subject of several other research reports. Cantor Fitzgerald reaffirmed a buy rating and issued a $52.00 price objective on shares of Mallinckrodt in a research note on Thursday, November 2nd. UBS Group set a $70.00 price objective on Mallinckrodt and gave the company a buy rating in a research note on Friday, October 6th. Deutsche Bank reaffirmed a buy rating and issued a $45.00 price objective (down previously from $56.00) on shares of Mallinckrodt in a research note on Thursday, September 14th. Goldman Sachs Group initiated coverage on Mallinckrodt in a research note on Thursday, September 28th. They issued a buy rating and a $55.00 price objective for the company. Finally, Canaccord Genuity downgraded Mallinckrodt from a buy rating to a hold rating and lowered their price objective for the company from $77.00 to $40.00 in a research note on Wednesday, October 4th. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and seven have assigned a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $44.99.
Mallinckrodt (NYSE:MNK) last released its quarterly earnings data on Tuesday, November 7th. The company reported $1.97 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.80 by $0.17. Mallinckrodt had a return on equity of 14.79% and a net margin of 11.43%. The company had revenue of $793.90 million during 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 firm’s revenue was down 10.5% compared to the same quarter last year. equities research analysts predict that Mallinckrodt will post 7.21 EPS for the current fiscal year.
In other Mallinckrodt news, Director David R. Carlucci purchased 10,000 shares of the business’s stock in a transaction on Thursday, November 9th. The shares were purchased at an average cost of $21.83 per share, for a total transaction of $218,300.00. Following the acquisition, the director now owns 26,020 shares of the company’s stock, valued at $568,016.60. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Michael-Bryant Hicks purchased 7,900 shares of the business’s stock in a transaction on Thursday, November 9th. The shares were acquired at an average price of $20.80 per share, for a total transaction of $164,320.00. The disclosure for this purchase can be found here. Insiders purchased 30,460 shares of company stock worth $659,486 over the last quarter. 0.77% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of the business. Shelton Capital Management bought a new position in shares of Mallinckrodt during the 3rd quarter worth approximately $205,000. Ameritas Investment Partners Inc. boosted its holdings in shares of Mallinckrodt by 1,051.7% during the 3rd quarter. Ameritas Investment Partners Inc. now owns 29,655 shares of the company’s stock worth $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% during the 3rd quarter. California Public Employees Retirement System now owns 263,970 shares of the company’s stock worth $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% during the 3rd quarter. Janney Montgomery Scott LLC now owns 32,611 shares of the company’s stock worth $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% during the 3rd quarter. Cubist Systematic Strategies LLC now owns 7,989 shares of the company’s stock worth $299,000 after buying an additional 7,047 shares in the last quarter. Hedge funds and other institutional investors own 97.35% of the company’s stock.
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Mallinckrodt Company Profile
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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