Zacks Investment Research upgraded shares of Mallinckrodt (NYSE:MNK) from a strong sell rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Mallinckrodt is selling its hemostasis products for Baxter. The company aims to focus better on its specialty pharmaceutical business after having sold its Nuclear Imaging business.Mallinckrodt is facing challenging conditions as lead drug Acthar sales declined on volume while weaknesses in the generics segment persist. Acthar declined as specialty drugs face payer environment and the decline is expected to continue in the fourth quarter as well. The company's generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. Shares of the company have underperformed the industry in the last six months. A U.S. District Court recently invalidated 11 patents covering its second-largest product Inomax. As a result, Mallinckrodt is looking to diversify its portfolio with the recently announced Sucampo acquisition and counter the decline in existing drugs.”
MNK has been the subject of a number of other reports. ValuEngine upgraded Mallinckrodt from a hold rating to a buy rating in a research report on Monday, October 2nd. Mizuho reiterated a hold rating and set a $40.00 target price on shares of Mallinckrodt in a research report on Sunday, October 15th. Canaccord Genuity set a $24.00 target price on Mallinckrodt and gave the company a hold rating in a research report on Tuesday, December 26th. Goldman Sachs Group reiterated a hold rating on shares of Mallinckrodt in a research report on Monday, January 1st. Finally, Deutsche Bank downgraded Mallinckrodt from a buy rating to a hold rating and cut their target price for the company from $44.00 to $28.00 in a research report on Tuesday, November 7th. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have given a buy rating to the stock. Mallinckrodt has a consensus rating of Hold and a consensus price target of $44.99.
Mallinckrodt (NYSE MNK) traded up $0.60 during trading hours on Tuesday, hitting $23.50. The stock had a trading volume of 2,490,375 shares, compared to its average volume of 3,190,000. The company has a market cap of $2,230.00, a P/E ratio of -1,175.00, a price-to-earnings-growth ratio of 0.43 and a beta of 1.30. The company has a current ratio of 1.38, a quick ratio of 1.05 and a debt-to-equity ratio of 1.08. Mallinckrodt has a 1 year low of $19.00 and a 1 year high of $55.32.
Mallinckrodt (NYSE:MNK) last released its earnings results on Tuesday, November 7th. The company reported $1.97 earnings per share for the quarter, beating analysts’ consensus estimates of $1.80 by $0.17. The firm had revenue of $793.90 million during the quarter, compared to the consensus estimate of $808.93 million. Mallinckrodt had a return on equity of 14.79% and a net margin of 11.43%. The company’s revenue was down 10.5% compared to the same quarter last year. During the same period in the prior year, the company posted $2.04 EPS. analysts expect that Mallinckrodt will post 7.21 EPS for the current fiscal year.
In other news, VP Steven J. Romano bought 2,000 shares of the stock in a transaction on Monday, November 13th. The stock was acquired at an average price of $21.96 per share, with a total value of $43,920.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Dr Kneeland Youngblood bought 4,560 shares of the stock in a transaction on Tuesday, November 28th. The stock was purchased at an average cost of $21.94 per share, with a total value of $100,046.40. Following the acquisition, the director now owns 19,789 shares in the company, valued at $434,170.66. The disclosure for this purchase can be found here. Insiders have bought a total of 30,460 shares of company stock valued at $659,486 in the last three months. 0.77% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Sentry Investment Management LLC increased its holdings in Mallinckrodt by 1.6% in the 2nd quarter. Sentry Investment Management LLC now owns 52,676 shares of the company’s stock worth $2,360,000 after purchasing an additional 817 shares in the last quarter. QS Investors LLC increased its holdings in Mallinckrodt by 10.8% in the 2nd quarter. QS Investors LLC now owns 9,477 shares of the company’s stock worth $425,000 after purchasing an additional 923 shares in the last quarter. Accident Compensation Corp increased its holdings in Mallinckrodt by 2.7% in the 2nd quarter. Accident Compensation Corp now owns 38,390 shares of the company’s stock worth $1,720,000 after purchasing an additional 1,000 shares in the last quarter. LS Investment Advisors LLC increased its holdings in Mallinckrodt by 27.1% in the 3rd quarter. LS Investment Advisors LLC now owns 9,517 shares of the company’s stock worth $356,000 after purchasing an additional 2,028 shares in the last quarter. Finally, Advantus Capital Management Inc increased its holdings in Mallinckrodt by 23.7% in the 3rd quarter. Advantus Capital Management Inc now owns 12,286 shares of the company’s stock worth $459,000 after purchasing an additional 2,352 shares in the last quarter. 97.35% of the stock is owned by institutional investors and hedge funds.
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Mallinckrodt Company Profile
Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs.
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