AmerisourceBergen (NYSE:ABC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “AmerisourceBergen underperformed its industry in the past year. Also, sluggishness in the ABCS segment is a concern. AmerisourceBergen faces headwinds, thanks to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Further, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. In this regard, the company faced lower-than-expected production at PharMEDium's Memphis facility in the last quarter. However, AmerisourceBergen's strong guidance instills investor’s optimism on the stock. Solid performance in the Pharmaceutical Distribution Segment and World Courier business holds promise. Notably, the company's World Courier unit recently obtained global Good Distribution Practices (GDP) designation. Further, the recent takeover of H.D. Smith, the largest independent wholesaler in the United States, is also a positive.”
Several other research firms also recently issued reports on ABC. Mizuho set a $100.00 target price on AmerisourceBergen and gave the company a “hold” rating in a research report on Wednesday, January 24th. Needham & Company LLC upped their target price on AmerisourceBergen from $88.00 to $108.00 and gave the company a “buy” rating in a research report on Tuesday, January 23rd. Bank of America initiated coverage on AmerisourceBergen in a research report on Tuesday, February 27th. They issued a “buy” rating and a $111.00 target price on the stock. Cowen reaffirmed a “buy” rating and set a $108.00 price target on shares of AmerisourceBergen in a research report on Tuesday, February 27th. Finally, Barclays initiated coverage on AmerisourceBergen in a research report on Thursday, March 8th. They set an “equal weight” rating and a $104.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. AmerisourceBergen has a consensus rating of “Buy” and an average price target of $103.34.
AmerisourceBergen (NYSE:ABC) last released its earnings results on Tuesday, February 6th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.35 by $0.20. AmerisourceBergen had a return on equity of 53.65% and a net margin of 0.66%. The firm had revenue of $40.47 billion for the quarter, compared to the consensus estimate of $40.42 billion. During the same period in the prior year, the firm earned $1.36 EPS. The firm’s revenue was up 6.0% on a year-over-year basis. research analysts predict that AmerisourceBergen will post 6.58 earnings per share for the current year.
In other news, insider Peyton R. Howell sold 3,000 shares of the stock in a transaction dated Wednesday, March 7th. The shares were sold at an average price of $93.78, for a total transaction of $281,340.00. Following the sale, the insider now directly owns 49,189 shares of the company’s stock, valued at approximately $4,612,944.42. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Dale Danilewitz sold 3,121 shares of the stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $92.12, for a total transaction of $287,506.52. The disclosure for this sale can be found here. Over the last three months, insiders have sold 156,809 shares of company stock worth $14,988,589. Corporate insiders own 27.30% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Addenda Capital Inc. purchased a new stake in shares of AmerisourceBergen during the 4th quarter worth about $4,599,000. MML Investors Services LLC boosted its stake in shares of AmerisourceBergen by 75.7% during the 4th quarter. MML Investors Services LLC now owns 20,999 shares of the company’s stock worth $1,928,000 after acquiring an additional 9,045 shares in the last quarter. BB&T Investment Services Inc. boosted its stake in shares of AmerisourceBergen by 11.0% during the 4th quarter. BB&T Investment Services Inc. now owns 13,959 shares of the company’s stock worth $1,285,000 after acquiring an additional 1,379 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of AmerisourceBergen by 107.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 5,363,429 shares of the company’s stock worth $434,385,000 after acquiring an additional 2,776,287 shares in the last quarter. Finally, Baupost Group LLC MA purchased a new stake in shares of AmerisourceBergen during the 3rd quarter worth about $15,627,000. 67.30% of the stock is currently owned by institutional investors and hedge funds.
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AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers.
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