Zacks Investment Research downgraded shares of GlaxoSmithKline (NYSE:GSK) from a buy rating to a hold rating in a report released on Thursday morning.
According to Zacks, “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. After underperforming the broader industry in 2017, Glaxo’s shares have picked up this year. However, 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. Estimates have gone up ahead of Q1 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”
Other equities research analysts have also recently issued reports about the company. UBS reaffirmed a buy rating on shares of GlaxoSmithKline in a research note on Monday, January 15th. TheStreet lowered GlaxoSmithKline from a b- rating to a c rating in a report on Wednesday, February 7th. Morgan Stanley upgraded GlaxoSmithKline from an underweight rating to an equal weight rating in a report on Thursday, March 22nd. ValuEngine lowered GlaxoSmithKline from a buy rating to a hold rating in a report on Sunday, December 31st. Finally, Cowen reiterated a hold rating and issued a $40.00 target price on shares of GlaxoSmithKline in a report on Thursday, February 15th. One research analyst has rated the stock with a sell rating, ten have given a hold rating and five have assigned a buy rating to the stock. GlaxoSmithKline has an average rating of Hold and an average price target of $40.21.
GlaxoSmithKline (NYSE:GSK) last issued its quarterly earnings data on Wednesday, February 7th. The pharmaceutical company reported $0.72 earnings per share for the quarter, beating the Zacks’ 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 business had revenue of $10.14 billion during the quarter, compared to analysts’ expectations of $9.89 billion. equities analysts predict that GlaxoSmithKline will post 2.92 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, April 12th. Investors of record on Friday, February 23rd were issued a $0.633 dividend. The ex-dividend date was Thursday, February 22nd. This is a positive change from GlaxoSmithKline’s previous quarterly dividend of $0.50. This represents a $2.53 dividend on an annualized basis and a yield of 6.32%. GlaxoSmithKline’s dividend payout ratio (DPR) is 89.93%.
Large investors have recently added to or reduced their stakes in the stock. Canandaigua National Bank & Trust Co. lifted its holdings in GlaxoSmithKline by 14.6% during the 4th quarter. Canandaigua National Bank & Trust Co. now owns 15,297 shares of the pharmaceutical company’s stock worth $543,000 after buying an additional 1,950 shares during the last quarter. Ballew Advisors Inc purchased a new stake in GlaxoSmithKline during the 4th quarter worth about $426,000. Commerzbank Aktiengesellschaft FI lifted its holdings in GlaxoSmithKline by 687.2% during the 4th quarter. Commerzbank Aktiengesellschaft FI now owns 168,346 shares of the pharmaceutical company’s stock worth $5,971,000 after buying an additional 146,960 shares during the last quarter. Iguana Healthcare Management LLC purchased a new stake in GlaxoSmithKline during the 4th quarter worth about $1,064,000. Finally, IFG Advisory LLC purchased a new stake in GlaxoSmithKline during the 4th quarter worth about $631,000. Hedge funds and other institutional investors own 10.96% of the company’s stock.
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GlaxoSmithKline Company Profile
GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterials, dermatology, rare diseases, immuno-inflammation, and HIV, as well as vaccines.
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