Zacks Investment Research Lowers GlaxoSmithKline (NYSE:GSK) to Hold

GlaxoSmithKline (NYSE:GSK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday, January 17th.

According to Zacks, “Glaxo enjoys a diversified base and presence in different geographical areas. Glaxo should continue to see strong performance in its Pharmaceuticals and Vaccines business units. We are positive on the company’s efforts to develop its pipeline. We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Jucalla – have strengthened Glaxo’s competitive position. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. The slowdown in sales of the Consumer Healthcare segment in 2017 is also a concern. Estimates have declined slightly ahead of Q4 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”

A number of other analysts have also recently weighed in on the company. UBS Group upgraded GlaxoSmithKline from a “neutral” rating to a “buy” rating and upped their price target for the company from $35.04 to $35.85 in a research report on Monday, November 27th. TheStreet upgraded GlaxoSmithKline from a “c+” rating to a “b” rating in a research report on Wednesday, October 25th. Barclays upgraded GlaxoSmithKline from an “equal weight” rating to an “overweight” rating in a report on Tuesday, January 16th. JPMorgan Chase & Co. restated a “neutral” rating on shares of GlaxoSmithKline in a report on Tuesday, October 24th. Finally, Argus decreased their target price on GlaxoSmithKline to $40.00 and set a “buy” rating on the stock in a report on Thursday, November 30th. Two analysts have rated the stock with a sell rating, ten have given a hold rating and six have assigned a buy rating to the company. GlaxoSmithKline presently has an average rating of “Hold” and a consensus price target of $38.57.

Shares of GlaxoSmithKline (NYSE GSK) traded up $0.32 on Wednesday, reaching $36.49. The company had a trading volume of 5,872,260 shares, compared to its average volume of 5,360,000. The stock has a market cap of $88,550.00, a PE ratio of 42.43, a P/E/G ratio of 2.34 and a beta of 0.98. GlaxoSmithKline has a 1 year low of $34.52 and a 1 year high of $44.53. The company has a debt-to-equity ratio of 4.09, a current ratio of 0.60 and a quick ratio of 0.44.

GlaxoSmithKline (NYSE:GSK) last posted its earnings results on Wednesday, February 7th. The pharmaceutical company reported $0.72 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.69 by $0.03. GlaxoSmithKline had a return on equity of 130.63% and a net margin of 4.97%. The firm had revenue of $10.14 billion during the quarter, compared to analyst estimates of $9.89 billion. equities analysts anticipate that GlaxoSmithKline will post 2.82 EPS for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. 1st Global Advisors Inc. lifted its position in shares of GlaxoSmithKline by 0.4% in the second quarter. 1st Global Advisors Inc. now owns 5,271 shares of the pharmaceutical company’s stock valued at $227,000 after buying an additional 19 shares during the last quarter. King Luther Capital Management Corp lifted its position in shares of GlaxoSmithKline by 1.0% in the second quarter. King Luther Capital Management Corp now owns 5,432 shares of the pharmaceutical company’s stock valued at $234,000 after buying an additional 55 shares during the last quarter. PagnatoKarp Partners LLC lifted its position in shares of GlaxoSmithKline by 1.4% in the second quarter. PagnatoKarp Partners LLC now owns 5,812 shares of the pharmaceutical company’s stock valued at $253,000 after buying an additional 80 shares during the last quarter. Peapack Gladstone Financial Corp lifted its holdings in GlaxoSmithKline by 1.0% during the 2nd quarter. Peapack Gladstone Financial Corp now owns 11,740 shares of the pharmaceutical company’s stock worth $506,000 after purchasing an additional 115 shares during the last quarter. Finally, Quadrant Capital Group LLC lifted its holdings in GlaxoSmithKline by 3.5% during the 2nd quarter. Quadrant Capital Group LLC now owns 4,345 shares of the pharmaceutical company’s stock worth $162,000 after purchasing an additional 148 shares during the last quarter. 9.66% of the stock is owned by institutional investors.

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About GlaxoSmithKline

GlaxoSmithKline plc is a global healthcare company. The Company operates through three segments: Pharmaceuticals, Vaccines and Consumer Healthcare. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases.

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