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 Monday.

According to Zacks, “Merrimack reported a dismal second quarter with its top and bottom lines missing estimates.With the sale of Onivyde, Merrimack is back to being a development-stage biopharmaceutical company. 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. The third candidate, MM-310 entered phase I study in the first quarter of 2017. Also, shares of the company have underperformed the industry year to date. However, the cash received from Ipsen was used to pay down the huge debt and return value to shareholders in the form of dividends. Moreover, the company has also invested a part of the proceeds to develop its streamlined oncology pipeline.”

A number of other research analysts have also weighed in on MACK. ValuEngine lowered Merrimack Pharmaceuticals from a “sell” rating to a “strong sell” rating in a report on Friday, June 2nd. Cowen and Company reissued a “market perform” rating on shares of Merrimack Pharmaceuticals in a report on Friday, May 19th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a strong buy rating to the company. Merrimack Pharmaceuticals currently has a consensus rating of “Hold” and a consensus price target of $7.09.

Shares of Merrimack Pharmaceuticals (NASDAQ MACK) remained flat at $1.26 during mid-day trading on Monday. 566,442 shares of the stock traded hands. The stock has a 50-day moving average of $1.32 and a 200-day moving average of $2.51. The firm has a market capitalization of $167.32 million, a price-to-earnings ratio of 0.39 and a beta of 2.02. 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, August 9th. The biopharmaceutical company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.14) by $0.08. During the same period last year, the business earned ($0.40) earnings per share. Equities research analysts expect that Merrimack Pharmaceuticals will post $0.76 EPS for the current fiscal year.

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A number of hedge funds and other institutional investors have recently modified their holdings of MACK. Stonebridge Capital Management Inc. raised its position in shares of Merrimack Pharmaceuticals by 121.0% in the second quarter. Stonebridge Capital Management Inc. now owns 80,700 shares of the biopharmaceutical company’s stock worth $100,000 after buying an additional 44,181 shares in the last quarter. Virtu KCG Holdings LLC raised its position in shares of Merrimack Pharmaceuticals by 46.5% in the second quarter. Virtu KCG Holdings LLC now owns 89,020 shares of the biopharmaceutical company’s stock worth $110,000 after buying an additional 28,235 shares in the last quarter. Creative Planning raised its position in shares of Merrimack Pharmaceuticals by 444.9% in the second quarter. Creative Planning now owns 89,408 shares of the biopharmaceutical company’s stock worth $111,000 after buying an additional 73,000 shares in the last quarter. Engineers Gate Manager LP purchased a new position in shares of Merrimack Pharmaceuticals during the second quarter worth approximately $113,000. Finally, UBS Asset Management Americas Inc. raised its position in shares of Merrimack Pharmaceuticals by 48.4% in the second quarter. UBS Asset Management Americas Inc. now owns 107,262 shares of the biopharmaceutical company’s stock worth $133,000 after buying an additional 34,983 shares in the last quarter. 58.53% of the stock is currently owned by hedge funds and other institutional investors.

About Merrimack Pharmaceuticals

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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