Zacks Investment Research Downgrades Pacira Pharmaceuticals (PCRX) to Sell

Zacks Investment Research cut shares of Pacira Pharmaceuticals (NASDAQ:PCRX) from a hold rating to a sell rating in a research report released on Tuesday.

According to Zacks, “Pacira’s top line mainly comprises contribution from its marketed product. The company is heavily dependent on Exparel for growth, which accounts for a significant chunk of its revenues. The company discontinued DepoCyt(e) in June 2017 due to persistent technical issues and lower collaborative licensing and milestone revenues. However, during the third quarter of 2017, the FDA accepted the resubmission of Pacira's supplemental new drug application (sNDA) seeking expansion of Exparel label to include administration via nerve block for prolonged regional analgesia and set an action date of Apr 6, 2018. Additionally, Pacira remains optimistic of its partnership with J&J to market and promote the use of Exparel, with their sales and medical education teams. Loss estimates have narrowed ahead of the Q4 earnings.”

Other equities research analysts have also issued research reports about the company. Needham & Company LLC reissued a buy rating on shares of Pacira Pharmaceuticals in a research note on Tuesday, September 26th. Mizuho reissued a buy rating and set a $53.00 price objective on shares of Pacira Pharmaceuticals in a research note on Monday, September 25th. Piper Jaffray Companies reissued a buy rating and set a $55.00 price objective on shares of Pacira Pharmaceuticals in a research note on Friday, October 27th. Royal Bank of Canada reissued a buy rating and set a $54.00 price objective on shares of Pacira Pharmaceuticals in a research note on Friday, October 13th. Finally, Bank of America dropped their price objective on Pacira Pharmaceuticals from $46.00 to $45.00 and set a buy rating for the company in a research note on Wednesday, October 4th. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and nine have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $49.00.

Pacira Pharmaceuticals (NASDAQ:PCRX) traded down $0.72 during trading hours on Tuesday, reaching $41.50. The company had a trading volume of 1,031,870 shares, compared to its average volume of 995,797. The company has a market capitalization of $1,680.00, a price-to-earnings ratio of -31.68 and a beta of 2.20. Pacira Pharmaceuticals has a 12 month low of $29.81 and a 12 month high of $58.95. The company has a quick ratio of 6.24, a current ratio of 6.99 and a debt-to-equity ratio of 1.03.

Pacira Pharmaceuticals (NASDAQ:PCRX) last posted its quarterly earnings data on Wednesday, November 8th. The company reported $0.11 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.04) by $0.15. The company had revenue of $67.30 million during the quarter, compared to analyst estimates of $68.99 million. Pacira Pharmaceuticals had a negative return on equity of 13.77% and a negative net margin of 18.25%. The firm’s quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter last year, the company earned $0.20 earnings per share. equities analysts predict that Pacira Pharmaceuticals will post -0.85 earnings per share for the current year.

In other news, Director Mark A. Kronenfeld purchased 1,000 shares of the company’s stock in a transaction on Friday, November 10th. The stock was purchased at an average price of $41.60 per share, with a total value of $41,600.00. Following the completion of the purchase, the director now directly owns 6,795 shares in the company, valued at approximately $282,672. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO David M. Stack sold 58,885 shares of Pacira Pharmaceuticals stock in a transaction dated Wednesday, November 15th. The stock was sold at an average price of $38.34, for a total value of $2,257,650.90. Following the sale, the chief executive officer now directly owns 159,164 shares of the company’s stock, valued at approximately $6,102,347.76. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 98,960 shares of company stock valued at $3,868,341. Corporate insiders own 6.60% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Oppenheimer Asset Management Inc. purchased a new position in shares of Pacira Pharmaceuticals in the second quarter worth about $114,000. Cubist Systematic Strategies LLC increased its holdings in shares of Pacira Pharmaceuticals by 121.5% in the second quarter. Cubist Systematic Strategies LLC now owns 3,194 shares of the company’s stock worth $152,000 after buying an additional 1,752 shares during the period. QS Investors LLC purchased a new position in shares of Pacira Pharmaceuticals in the second quarter worth about $157,000. Ameritas Investment Partners Inc. increased its holdings in shares of Pacira Pharmaceuticals by 9.6% in the second quarter. Ameritas Investment Partners Inc. now owns 3,449 shares of the company’s stock worth $165,000 after buying an additional 302 shares during the period. Finally, Spectrum Management Group Inc. purchased a new position in shares of Pacira Pharmaceuticals in the third quarter worth about $166,000.

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Pacira Pharmaceuticals Company Profile

Pacira Pharmaceuticals, Inc is a holding company. The Company is a pharmaceutical company focused on the development, manufacture and commercialization of pharmaceutical products, based on its DepoFoam extended release drug delivery technology, for use primarily in hospitals and ambulatory surgery centers.

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