Mallinckrodt PLC (MNK) Cut to “Sell” at Zacks Investment Research
Mallinckrodt PLC (NYSE:MNK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Mallinckrodt is currently focused on reshaping its product portfolio through strategic acquisitions and non-core asset divestitures. The company sold its Nuclear Imaging business due to lingering challenging conditions for quite some time. The company also sold its Intrathecal Therapy business to focus on its key areas. The generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. Weakness in shares persist as shares have underperformed the Medical-Generic Drugs industry so far in 2017. On the other hand, Acthar sales continue to be strong on the back of increased formulary positions and access for appropriate patients in both the commercial and public environments. The company is working on expanding Acthar's label further.”
A number of other analysts have also recently commented on the company. Jefferies Group LLC cut Mallinckrodt PLC to a “buy” rating and lowered their price target for the stock from $95.00 to $70.00 in a research report on Monday, March 13th. Leerink Swann reaffirmed an “outperform” rating on shares of Mallinckrodt PLC in a research report on Monday, March 20th. Canaccord Genuity lowered their price target on Mallinckrodt PLC from $91.00 to $87.00 and set a “buy” rating for the company in a research report on Tuesday, May 9th. ValuEngine cut Mallinckrodt PLC from a “buy” rating to a “hold” rating in a research report on Friday, June 2nd. Finally, Deutsche Bank AG set a $68.00 price target on Mallinckrodt PLC and gave the stock a “buy” rating in a research report on Wednesday, May 31st. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and fifteen have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $74.31.
Mallinckrodt PLC (NYSE:MNK) traded up 2.80% on Tuesday, reaching $43.03. The company’s stock had a trading volume of 1,651,346 shares. The company’s market capitalization is $4.27 billion. Mallinckrodt PLC has a 1-year low of $38.80 and a 1-year high of $85.83. The firm’s 50 day moving average price is $42.92 and its 200-day moving average price is $47.15.
Mallinckrodt PLC (NYSE:MNK) last issued its quarterly earnings results on Monday, May 8th. The company reported $1.68 EPS for the quarter, topping the Zacks’ consensus estimate of $1.63 by $0.05. Mallinckrodt PLC had a return on equity of 16.33% and a net margin of 16.01%. The company had revenue of $810.90 million during the quarter, compared to analysts’ expectations of $781.23 million. During the same quarter in the previous year, the firm posted $2.01 EPS. The firm’s revenue was down .6% compared to the same quarter last year. Equities analysts forecast that Mallinckrodt PLC will post $7.55 earnings per share for the current year.
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In other Mallinckrodt PLC news, VP Steven J. Romano purchased 1,000 shares of Mallinckrodt PLC stock in a transaction that occurred on Friday, June 9th. The stock was bought at an average price of $39.88 per share, with a total value of $39,880.00. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Coleman N. Lannum III purchased 1,350 shares of Mallinckrodt PLC stock in a transaction that occurred on Friday, June 2nd. The stock was acquired at an average cost of $42.89 per share, with a total value of $57,901.50. Following the acquisition, the vice president now directly owns 30,955 shares in the company, valued at approximately $1,327,659.95. The disclosure for this purchase can be found here. Insiders purchased a total of 5,818 shares of company stock valued at $248,608 in the last ninety days. 0.53% of the stock is currently owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in MNK. Vanguard Group Inc. boosted its position in Mallinckrodt PLC by 1.0% in the first quarter. Vanguard Group Inc. now owns 10,247,891 shares of the company’s stock worth $456,748,000 after buying an additional 103,924 shares during the last quarter. BlackRock Inc. boosted its position in Mallinckrodt PLC by 4,060.7% in the first quarter. BlackRock Inc. now owns 8,734,709 shares of the company’s stock worth $389,307,000 after buying an additional 8,524,773 shares during the last quarter. State Street Corp boosted its position in Mallinckrodt PLC by 5.1% in the first quarter. State Street Corp now owns 5,197,656 shares of the company’s stock worth $231,654,000 after buying an additional 250,838 shares during the last quarter. Alliancebernstein L.P. boosted its position in Mallinckrodt PLC by 1,455.5% in the first quarter. Alliancebernstein L.P. now owns 2,900,796 shares of the company’s stock worth $129,288,000 after buying an additional 2,714,313 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in Mallinckrodt PLC by 12.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,614,565 shares of the company’s stock worth $71,968,000 after buying an additional 174,712 shares during the last quarter. 96.39% of the stock is owned by institutional investors.
About Mallinckrodt PLC
Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs.
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