Embecta (NASDAQ:EMBC) Trading Down 7.1% – Here’s Why

Embecta Corp. (NASDAQ:EMBC) shares fell 7.1% during mid-day trading on Wednesday . The company traded as low as $12.84 and last traded at $12.6220. 88,615 shares were traded during trading, a decline of 84% from the average session volume of 553,146 shares. The stock had previously closed at $13.58.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on EMBC shares. BTIG Research restated a “buy” rating on shares of Embecta in a research note on Tuesday. Weiss Ratings restated a “hold (c-)” rating on shares of Embecta in a research note on Wednesday, October 8th. Zacks Research downgraded shares of Embecta from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 7th. Finally, Wall Street Zen raised shares of Embecta from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 16th. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $19.00.

Embecta Stock Down 8.4%

The stock has a market capitalization of $727.55 million, a P/E ratio of 8.70, a PEG ratio of 0.81 and a beta of 1.10. The business has a 50-day simple moving average of $14.05 and a two-hundred day simple moving average of $12.48.

Embecta (NASDAQ:EMBC) last issued its earnings results on Tuesday, November 25th. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.46 by $0.04. The company had revenue of $263.30 million for the quarter, compared to the consensus estimate of $265.66 million. Embecta had a net margin of 7.58% and a negative return on equity of 23.40%. The firm’s revenue for the quarter was down 7.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.45 EPS. Embecta has set its FY 2026 guidance at 2.800-3.000 EPS. On average, sell-side analysts forecast that Embecta Corp. will post 2.85 earnings per share for the current year.

Embecta Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 18th. Shareholders of record on Friday, December 5th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 4.8%. The ex-dividend date of this dividend is Friday, December 5th. Embecta’s dividend payout ratio is currently 41.96%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. American Century Companies Inc. increased its holdings in Embecta by 36.3% during the 2nd quarter. American Century Companies Inc. now owns 5,195,948 shares of the company’s stock valued at $50,349,000 after purchasing an additional 1,382,537 shares in the last quarter. River Road Asset Management LLC grew its holdings in shares of Embecta by 0.4% during the second quarter. River Road Asset Management LLC now owns 3,240,243 shares of the company’s stock worth $32,921,000 after purchasing an additional 12,352 shares during the last quarter. Yacktman Asset Management LP increased its stake in shares of Embecta by 0.7% in the second quarter. Yacktman Asset Management LP now owns 2,373,386 shares of the company’s stock valued at $22,998,000 after buying an additional 16,069 shares in the last quarter. William Blair Investment Management LLC raised its holdings in shares of Embecta by 0.7% in the second quarter. William Blair Investment Management LLC now owns 1,992,604 shares of the company’s stock valued at $19,308,000 after buying an additional 14,232 shares during the last quarter. Finally, Jefferies Financial Group Inc. lifted its position in Embecta by 40.4% during the 3rd quarter. Jefferies Financial Group Inc. now owns 1,884,875 shares of the company’s stock worth $26,596,000 after buying an additional 542,162 shares in the last quarter. 93.83% of the stock is owned by institutional investors and hedge funds.

About Embecta

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes.