Zacks Investment Research downgraded shares of GlaxoSmithKline (NYSE:GSK) from a buy rating to a hold rating in a research report report published on Wednesday morning.
According to Zacks, “We are positive on Glaxo’s efforts to develop its pipeline. We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Data from several of the late-state pipeline programs are expected in 2018. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Juluca – have strengthened Glaxo’s competitive position. Glaxo’s shares have underperformed the broader industry in the past year. Moreover, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. Meanwhile its top-selling respiratory product, Advair is also expected to face generic competition in the United States this year, which will hurt sales. “
A number of other research analysts have also weighed in on GSK. ValuEngine lowered shares of GlaxoSmithKline from a buy rating to a hold rating in a research note on Friday, February 2nd. Kepler Capital Markets upgraded shares of GlaxoSmithKline from a reduce rating to a hold rating in a report on Friday, February 9th. JPMorgan Chase & Co. restated a neutral rating on shares of GlaxoSmithKline in a report on Monday, January 29th. TheStreet downgraded shares of GlaxoSmithKline from a b- rating to a c rating in a report on Wednesday, February 7th. Finally, Cowen restated a hold rating and set a $40.00 price target on shares of GlaxoSmithKline in a report on Thursday, February 15th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and five have issued a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $38.77.
GlaxoSmithKline (NYSE:GSK) last released its earnings results on Wednesday, February 7th. The pharmaceutical company reported $0.72 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.69 by $0.03. GlaxoSmithKline had a net margin of 4.97% and a return on equity of 130.63%. The business had revenue of $10.14 billion for the quarter, compared to analyst estimates of $9.89 billion. sell-side analysts predict that GlaxoSmithKline will post 2.93 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Thursday, April 12th. Stockholders of record on Friday, February 23rd will be issued a dividend of $0.633 per share. The ex-dividend date of this dividend is Thursday, February 22nd. This represents a $2.53 dividend on an annualized basis and a dividend yield of 6.77%. This is an increase from GlaxoSmithKline’s previous quarterly dividend of $0.50. GlaxoSmithKline’s dividend payout ratio (DPR) is currently 320.26%.
A number of institutional investors have recently bought and sold shares of GSK. Two Sigma Advisers LP increased its holdings in GlaxoSmithKline by 55.5% in the 4th quarter. Two Sigma Advisers LP now owns 5,074,642 shares of the pharmaceutical company’s stock valued at $179,998,000 after purchasing an additional 1,811,400 shares during the last quarter. Millennium Management LLC increased its holdings in GlaxoSmithKline by 259.7% in the 4th quarter. Millennium Management LLC now owns 1,825,451 shares of the pharmaceutical company’s stock valued at $64,749,000 after purchasing an additional 1,318,012 shares during the last quarter. Hotchkis & Wiley Capital Management LLC increased its holdings in GlaxoSmithKline by 7.3% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 8,416,927 shares of the pharmaceutical company’s stock valued at $341,727,000 after purchasing an additional 569,600 shares during the last quarter. Point72 Asset Management L.P. increased its holdings in GlaxoSmithKline by 504.4% in the 3rd quarter. Point72 Asset Management L.P. now owns 604,419 shares of the pharmaceutical company’s stock valued at $24,539,000 after purchasing an additional 504,419 shares during the last quarter. Finally, Two Sigma Investments LP increased its holdings in GlaxoSmithKline by 23.7% in the 4th quarter. Two Sigma Investments LP now owns 2,388,168 shares of the pharmaceutical company’s stock valued at $84,708,000 after purchasing an additional 457,276 shares during the last quarter. Hedge funds and other institutional investors own 10.96% of the company’s stock.
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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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