Zacks Investment Research Downgrades PDL BioPharma Inc. (PDLI) to Hold
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 reiterated a “hold” rating and set a $3.50 price objective 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 1.88% during midday trading on Wednesday, hitting $3.13. The company had a trading volume of 289,434 shares. The company has a 50-day moving average of $3.20 and a 200 day moving average of $3.25. PDL BioPharma has a 12 month low of $2.58 and a 12 month high of $4.79. The firm has a market capitalization of $518.14 million, a PE ratio of 2.23 and a beta of 0.71.
PDL BioPharma (NASDAQ:PDLI) last announced its quarterly earnings data on Thursday, August 4th. The company reported $0.09 EPS for the quarter, topping 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 firm had revenue of $21 million for the quarter, compared to the consensus estimate of $33.46 million. During the same quarter last year, the business posted $0.47 earnings per share. The firm’s revenue was down 84.8% compared to the same quarter last year. On average, analysts expect that PDL BioPharma will post $0.51 EPS for the current fiscal year.
In other PDL BioPharma news, VP Peter S. Garcia bought 10,000 shares of the business’s stock in a transaction on Tuesday, August 9th. The stock was bought at an average price of $3.00 per share, with a total value of $30,000.00. Following the completion of the purchase, the vice president now directly owns 232,092 shares in the company, valued at $696,276. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.10% of the company’s stock.
A number of large investors have recently bought and sold shares of PDLI. Cubist Systematic Strategies LLC boosted 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 during the period. Ifrah Financial Services Inc. boosted its stake in 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. Public Employees Retirement System of Ohio boosted its stake in 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. Bayesian Capital Management LP acquired a new stake in PDL BioPharma during the first quarter valued at about $124,000. Finally, Janney Montgomery Scott LLC acquired a new stake in PDL BioPharma during the second quarter valued at about $127,000. 75.20% of the stock is owned by institutional investors.
About PDL BioPharma
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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