Impax Laboratories, Inc. (IPXL) Cut to Strong Sell at Zacks Investment Research
Impax Laboratories, Inc. (NASDAQ:IPXL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Monday.
According to Zacks, “Impax’s Generics segment has been under competitive and pricing pressure, which is expected to persist through 2017. However, the epinephrine auto-injector sales picked up and the company has 24 ANDAs pending FDA approval. The company is also taking steps to reduce costs and improve efficiencies, which is estimated to save a total of $130 million by the end of 2019. However, the company’s 2017 earnings guidance is significantly lower than 2016 numbers as continued impact of lower pricing on generics is expected to hurt revenues. Moreover, the company’s manufacturing facilities had been hampered by quality control issues since 2011 and an inspection had even delayed Rytary’s approval. Impax is also involved in a patent litigation regarding approval of generic version of Rytary. Estimates have been mostly stable ahead of the Q2 results. Impax does not have an impressive record of earnings surprises in the recent quarters.”
A number of other equities analysts have also weighed in on the stock. Piper Jaffray Companies upgraded shares of Impax Laboratories from an “underweight” rating to a “neutral” rating and lifted their price target for the company from $9.00 to $16.00 in a report on Tuesday, July 18th. Deutsche Bank AG set a $21.00 price target on shares of Impax Laboratories and gave the company a “buy” rating in a report on Monday, July 17th. Royal Bank Of Canada set a $15.00 price target on shares of Impax Laboratories and gave the company a “hold” rating in a report on Sunday, July 16th. BidaskClub upgraded shares of Impax Laboratories from a “hold” rating to a “buy” rating in a report on Wednesday, July 12th. Finally, BMO Capital Markets reiterated a “hold” rating and issued a $16.00 price target on shares of Impax Laboratories in a report on Friday, June 23rd. Four equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the company’s stock. Impax Laboratories currently has a consensus rating of “Hold” and an average target price of $18.60.
Shares of Impax Laboratories (NASDAQ:IPXL) traded up 3.994% on Monday, hitting $18.875. The stock had a trading volume of 521,124 shares. Impax Laboratories has a one year low of $7.75 and a one year high of $31.85. The stock’s market cap is $1.35 billion. The company’s 50 day moving average is $16.20 and its 200 day moving average is $13.78.
Impax Laboratories (NASDAQ:IPXL) last announced its earnings results on Wednesday, May 10th. The specialty pharmaceutical company reported $0.11 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.12 by $0.01. Impax Laboratories had a positive return on equity of 7.71% and a negative net margin of 71.50%. The firm had revenue of $184.40 million for the quarter, compared to analyst estimates of $193.17 million. During the same quarter last year, the business posted $0.43 EPS. The firm’s revenue was down 18.2% compared to the same quarter last year. Equities research analysts predict that Impax Laboratories will post $0.66 EPS for the current fiscal year.
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Several institutional investors have recently modified their holdings of the stock. Norges Bank acquired a new position in shares of Impax Laboratories during the fourth quarter worth approximately $16,669,000. Frontier Capital Management Co. LLC acquired a new position in shares of Impax Laboratories during the first quarter worth approximately $14,012,000. Two Sigma Investments LP increased its position in shares of Impax Laboratories by 3,042.4% in the fourth quarter. Two Sigma Investments LP now owns 1,065,779 shares of the specialty pharmaceutical company’s stock worth $14,122,000 after buying an additional 1,031,863 shares in the last quarter. North Tide Capital LLC increased its position in shares of Impax Laboratories by 50.0% in the first quarter. North Tide Capital LLC now owns 3,000,000 shares of the specialty pharmaceutical company’s stock worth $37,950,000 after buying an additional 1,000,000 shares in the last quarter. Finally, Renaissance Technologies LLC increased its position in shares of Impax Laboratories by 515.1% in the fourth quarter. Renaissance Technologies LLC now owns 1,093,002 shares of the specialty pharmaceutical company’s stock worth $14,482,000 after buying an additional 915,302 shares in the last quarter. 83.84% of the stock is currently owned by institutional investors and hedge funds.
About Impax Laboratories
Impax Laboratories, Inc is a specialty pharmaceutical company. The Company is engaged in the development, manufacture and marketing of bioequivalent pharmaceutical products (generics), in addition to the development and marketing of branded products. Its segments include Impax Generics and Impax Specialty Pharma.
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