Zacks Investment Research downgraded shares of Mallinckrodt (NYSE:MNK) from a buy rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “The year 2018 is expected to be a transformative year for Mallinckrodt as the company strives to revive its product portfolio/pipeline. The hospital franchise (Inomax and Ofirmev) has gained traction which is positively impacting sales. The company also upped its annul guidance. The Sucampo buyout will diversify the company’s portfolio considering Amitiza’s potential. The company is currently streamlining its business to focus better on its innovative medicines and therapies like terlipressin and StrataGraft. The recent restructuring efforts are encourgaing as the company has been in troubled waters for quite some time now. Shares have outperformed the industry in the year so far. However, sales of Acthar continue to decline due to the residual impact of patient withdrawal issues thereby adversely impacting the top-line as the drug is the lead product of the company. The CRL for stannsoporfin was disappointing.”
Several other research firms have also commented on MNK. Leerink Swann upped their target price on Mallinckrodt from $12.00 to $27.00 and gave the company a market perform rating in a research note on Wednesday, August 8th. Morgan Stanley upped their target price on Mallinckrodt from $14.00 to $35.00 and gave the company an equal weight rating in a research note on Friday, August 17th. SunTrust Banks upped their target price on Mallinckrodt to $32.00 and gave the company a positive rating in a research note on Monday, August 13th. They noted that the move was a valuation call. B. Riley upped their target price on Mallinckrodt from $20.00 to $37.00 and gave the company a neutral rating in a research note on Friday, August 24th. Finally, Goldman Sachs Group lowered Mallinckrodt from a neutral rating to a sell rating and upped their target price for the company from $27.00 to $28.00 in a research note on Tuesday, September 11th. Four research analysts have rated the stock with a sell rating, thirteen have given a hold rating and five have assigned a buy rating to the company’s stock. Mallinckrodt presently has a consensus rating of Hold and a consensus target price of $31.30.
Shares of NYSE:MNK opened at $27.16 on Tuesday. The company has a current ratio of 2.27, a quick ratio of 2.06 and a debt-to-equity ratio of 0.98. Mallinckrodt has a 52-week low of $11.65 and a 52-week high of $36.65. The firm has a market capitalization of $2.44 billion, a PE ratio of 3.63, a P/E/G ratio of 0.49 and a beta of 1.61.
Mallinckrodt (NYSE:MNK) last issued its quarterly earnings data on Tuesday, August 7th. The company reported $1.78 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.48 by $0.30. Mallinckrodt had a return on equity of 10.39% and a net margin of 59.85%. The business had revenue of $631.70 million for the quarter, compared to the consensus estimate of $621.15 million. On average, equities analysts anticipate that Mallinckrodt will post 6.7 EPS for the current fiscal year.
A number of large investors have recently made changes to their positions in MNK. Scopia Capital Management LP increased its stake in Mallinckrodt by 111.2% during the first quarter. Scopia Capital Management LP now owns 8,626,365 shares of the company’s stock worth $124,910,000 after acquiring an additional 4,541,078 shares during the last quarter. BlackRock Inc. increased its stake in Mallinckrodt by 19.1% during the second quarter. BlackRock Inc. now owns 9,649,420 shares of the company’s stock worth $180,057,000 after acquiring an additional 1,546,671 shares during the last quarter. Miller Value Partners LLC increased its stake in Mallinckrodt by 57.5% during the second quarter. Miller Value Partners LLC now owns 3,338,025 shares of the company’s stock worth $62,288,000 after acquiring an additional 1,218,750 shares during the last quarter. Millennium Management LLC increased its stake in Mallinckrodt by 436.9% during the first quarter. Millennium Management LLC now owns 1,078,581 shares of the company’s stock worth $15,618,000 after acquiring an additional 877,699 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of Mallinckrodt by 22.0% in the first quarter. Dimensional Fund Advisors LP now owns 4,077,402 shares of the company’s stock valued at $59,041,000 after buying an additional 735,529 shares in the last quarter.
Mallinckrodt public limited company develops, manufactures, markets, and distributes branded pharmaceutical products in Canada and the European Union, as well as in Latin American, the Middle Eastern, African, and the Asia-Pacific regions. The company markets branded pharmaceutical products for autoimmune and rare diseases in the specialty areas of neurology, rheumatology, nephrology, ophthalmology, and pulmonology; and immunotherapy and neonatal respiratory critical care therapies, as well as analgesics and gastrointestinal products.
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