Emergent Biosolutions Inc. (EBS) Cut to “Strong Sell” at Zacks Investment Research
Emergent Biosolutions Inc. (NYSE:EBS) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Emergent aims to offer specialized products to health care providers and governments to fulfil unmet medical needs and combat threats posed by serious diseases to human health. The company derives the majority of revenues from sales of its key product BioThrax to its principal purchaser, the U.S. government. Its sole dependence on BioThrax for revenues has its inherent risks and thus remains a concern. Any hiccup in the production of BioThrax could hurt the company’s top line significantly. Moreover, Emergent faces competition from a number of companies with biodefense products or candidates under development for both the U.S. government procurement and development resources. Stiff competition remains a concern as well. However, Emergent has secured a multi-year contract with the BARDA, for the advanced development and delivery of its next generation anthrax vaccine candidate, NuThrax. Its approval will be a huge boost for the company.”
Several other equities research analysts have also recently issued reports on EBS. Cowen and Company cut shares of Emergent Biosolutions from an “outperform” rating to a “market perform” rating in a report on Wednesday, June 22nd. Wells Fargo & Co. restated a “buy” rating on shares of Emergent Biosolutions in a report on Wednesday, June 22nd. Singular Research dropped their target price on shares of Emergent Biosolutions from $44.00 to $40.00 and set a “buy” rating on the stock in a report on Tuesday, June 28th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Emergent Biosolutions from $45.00 to $36.00 and set an “overweight” rating on the stock in a report on Friday, August 5th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $40.17.
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Shares of Emergent Biosolutions (NYSE:EBS) traded down 2.23% during midday trading on Wednesday, reaching $31.19. 702,667 shares of the company’s stock were exchanged. The firm has a 50 day moving average of $28.28 and a 200-day moving average of $34.06. The stock has a market cap of $1.26 billion, a price-to-earnings ratio of 22.31 and a beta of 1.12. Emergent Biosolutions has a one year low of $26.12 and a one year high of $44.38.
Emergent Biosolutions (NYSE:EBS) last issued its earnings results on Thursday, August 4th. The biopharmaceutical company reported ($0.18) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.17) by $0.01. Emergent Biosolutions had a return on equity of 11.93% and a net margin of 11.61%. The company earned $101.49 million during the quarter, compared to analysts’ expectations of $111.20 million. During the same quarter in the prior year, the business posted $0.36 EPS. The company’s revenue for the quarter was down 19.5% compared to the same quarter last year. On average, equities research analysts anticipate that Emergent Biosolutions will post $1.03 earnings per share for the current year.
Hedge funds and other institutional investors have recently modified their holdings of the company. Woodstock Corp increased its stake in shares of Emergent Biosolutions by 50.5% in the third quarter. Woodstock Corp now owns 33,137 shares of the biopharmaceutical company’s stock valued at $1,045,000 after buying an additional 11,120 shares during the last quarter. Mason Street Advisors LLC purchased a new stake in shares of Emergent Biosolutions during the second quarter valued at approximately $172,000. Howe & Rusling Inc. increased its stake in shares of Emergent Biosolutions by 3.0% in the second quarter. Howe & Rusling Inc. now owns 4,875 shares of the biopharmaceutical company’s stock valued at $137,000 after buying an additional 140 shares during the last quarter. Schwab Charles Investment Management Inc. increased its stake in shares of Emergent Biosolutions by 40.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 739,287 shares of the biopharmaceutical company’s stock valued at $20,789,000 after buying an additional 211,936 shares during the last quarter. Finally, Metropolitan Life Insurance Co. NY increased its stake in shares of Emergent Biosolutions by 1.4% in the second quarter. Metropolitan Life Insurance Co. NY now owns 23,280 shares of the biopharmaceutical company’s stock valued at $655,000 after buying an additional 314 shares during the last quarter. Institutional investors and hedge funds own 89.95% of the company’s stock.
Emergent Biosolutions Company Profile
Emergent BioSolutions Inc is a biopharmaceutical company that offers specialized products to healthcare providers and governments to address medical needs and emerging health threats. The Company develops, manufactures and delivers a portfolio of medical countermeasures primarily for government agencies in the areas of biological and chemical threats and emerging infectious diseases (EID).
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