PDL BioPharma Inc. (PDLI) Stock Rating Lowered by Zacks Investment Research
PDL BioPharma Inc. (NASDAQ:PDLI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “PDL BioPharma has made a strategic shift of late, whereby it is making equity investments in product-focused companies. The latest example is that of Noden Pharma. Recently, PDL BioPharma completed an initial equity investment of $75 million in privately held specialty pharmaceutical company, Noden Pharma, for the acquisition of global rights to manufacture, market and sell Tekturna and Tekturna HCT. The deal is expected to be immediately accretive to PDL BioPharma’s earnings. ARIAD deal is another positive for the company. Estimates have been mostly stable ahead of the company’s Q3 results. We note that the company derives revenues primarily from royalties, which is not a risk-free strategy. Uncertainties related to the future source of revenues is another cause of concern. The company’s revenues decreased materially in the second quarter of 2016 after it stopped receiving payments from certain Queen et al. patent licenses.”
Separately, Cowen and Company restated a “hold” rating and issued a $3.50 target price on shares of PDL BioPharma in a research report on Sunday, August 7th.
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Shares of PDL BioPharma (NASDAQ:PDLI) traded down 2.19% during midday trading on Wednesday, reaching $3.12. The company’s stock had a trading volume of 255,933 shares. The stock’s 50-day moving average price is $3.20 and its 200-day moving average price is $3.25. The company has a market cap of $516.48 million, a P/E ratio of 2.22 and a beta of 0.71. PDL BioPharma has a 12-month low of $2.58 and a 12-month high of $4.79.
PDL BioPharma (NASDAQ:PDLI) last posted its earnings results on Thursday, August 4th. The company reported $0.09 EPS for the quarter, beating the Zacks’ consensus estimate of $0.08 by $0.01. PDL BioPharma had a return on equity of 38.94% and a net margin of 53.90%. The company had revenue of $21 million for the quarter, compared to the consensus estimate of $33.46 million. During the same quarter in the previous year, the business earned $0.47 earnings per share. The company’s revenue for the quarter was down 84.8% on a year-over-year basis. On average, analysts expect that PDL BioPharma will post $0.51 EPS for the current fiscal year.
In other news, VP Peter S. Garcia acquired 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 9th. The shares were purchased at an average price of $3.00 per share, for a total transaction of $30,000.00. Following the acquisition, the vice president now owns 232,092 shares of the company’s stock, valued at $696,276. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 1.10% of the stock is owned by corporate insiders.
Several large investors have recently bought and sold shares of PDLI. Cubist Systematic Strategies LLC increased its stake in PDL BioPharma by 43.5% in the second quarter. Cubist Systematic Strategies LLC now owns 32,310 shares of the company’s stock valued at $101,000 after buying an additional 9,794 shares in the last quarter. Ifrah Financial Services Inc. increased its stake in shares of PDL BioPharma by 3.4% in the second quarter. Ifrah Financial Services Inc. now owns 33,643 shares of the company’s stock valued at $106,000 after buying an additional 1,107 shares during the period. Janney Montgomery Scott LLC bought a new stake in shares of PDL BioPharma during the second quarter valued at $127,000. Public Employees Retirement System of Ohio increased its stake in shares of PDL BioPharma by 23.2% in the second quarter. Public Employees Retirement System of Ohio now owns 36,100 shares of the company’s stock valued at $113,000 after buying an additional 6,809 shares during the period. Finally, Bayesian Capital Management LP bought a new stake in shares of PDL BioPharma during the first quarter valued at $124,000. Hedge funds and other institutional investors own 75.20% of the company’s stock.
PDL BioPharma Company Profile
PDL BioPharma, Inc, formerly Protein Design Labs, Inc, manages a portfolio of patents and royalty assets, consisting of its Queen et al. patents, license agreements with various biotechnology and pharmaceutical companies, and royalty and other assets acquired. The Company provides non-dilutive growth capital and financing solutions to late-stage public and private healthcare companies and offers immediate financial monetization of royalty streams to companies, academic institutions and inventors.
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