Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “With the sale of Onivyde, Merrimack is back to being a development-stage biopharmaceutical company. Thus, the successful development of the three lead candidates in its pipeline is critical for Merrimack’s growth. Moreover, two of the candidates, MM-121 and MM-141, are still being evaluated in phase II studies. And the third candidate, MM-310 entered phase I study in the first quarter of 2017. Also, shares of the company have underperformed the Zacks categorized Medical Biomed/Genetics industry year to date. However, the cash received from Ipsen will be used to pay down the huge debt and return value to shareholders in the form of dividends. Estimates have remained mostly stable lately ahead of the Q2 results. The company has a mixed record of earnings surprises in recent quarters.”

Other research analysts have also recently issued research reports about the stock. Cowen and Company reissued a “market perform” rating on shares of Merrimack Pharmaceuticals in a report on Friday, May 19th. ValuEngine cut shares of Merrimack Pharmaceuticals from a “sell” rating to a “strong sell” rating in a report on Friday, June 2nd. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $8.27.

Merrimack Pharmaceuticals (NASDAQ MACK) traded down 2.10% during midday trading on Tuesday, reaching $1.40. 1,136,421 shares of the company’s stock traded hands. The company’s market cap is $185.40 million. The stock has a 50-day moving average of $2.15 and a 200 day moving average of $3.09. Merrimack Pharmaceuticals has a 52-week low of $1.13 and a 52-week high of $6.79.

Merrimack Pharmaceuticals (NASDAQ:MACK) last posted its earnings results on Wednesday, May 10th. The biopharmaceutical company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by $0.15. During the same period in the previous year, the company earned ($0.33) EPS. On average, analysts anticipate that Merrimack Pharmaceuticals will post ($0.54) earnings per share for the current fiscal year.

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Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Credit Suisse AG increased its position in Merrimack Pharmaceuticals by 84.2% in the first quarter. Credit Suisse AG now owns 374,536 shares of the biopharmaceutical company’s stock valued at $1,154,000 after buying an additional 171,218 shares in the last quarter. Metropolitan Life Insurance Co. NY increased its position in Merrimack Pharmaceuticals by 6.5% in the first quarter. Metropolitan Life Insurance Co. NY now owns 93,074 shares of the biopharmaceutical company’s stock valued at $287,000 after buying an additional 5,688 shares in the last quarter. State Street Corp increased its position in Merrimack Pharmaceuticals by 23.6% in the first quarter. State Street Corp now owns 6,611,230 shares of the biopharmaceutical company’s stock valued at $20,364,000 after buying an additional 1,261,783 shares in the last quarter. Schwab Charles Investment Management Inc. increased its position in Merrimack Pharmaceuticals by 5.4% in the first quarter. Schwab Charles Investment Management Inc. now owns 438,888 shares of the biopharmaceutical company’s stock valued at $1,352,000 after buying an additional 22,401 shares in the last quarter. Finally, KCG Holdings Inc. increased its position in Merrimack Pharmaceuticals by 125.6% in the first quarter. KCG Holdings Inc. now owns 60,785 shares of the biopharmaceutical company’s stock valued at $187,000 after buying an additional 33,847 shares in the last quarter. 59.11% of the stock is owned by institutional investors.

Merrimack Pharmaceuticals Company Profile

Merrimack Pharmaceuticals, Inc is a biopharmaceutical company. The Company is engaged in discovering, developing and commercializing medicines consisting of therapeutics paired with companion diagnostics for the treatment of cancer. The Company has one marketed therapeutic oncology product and multiple targeted therapeutic oncology candidates in clinical development.

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Analyst Recommendations for Merrimack Pharmaceuticals (NASDAQ:MACK)

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