Mallinckrodt PLC (MNK) Downgraded by Zacks Investment Research
Mallinckrodt PLC (NYSE:MNK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Mallinckrodt is currently focused on reshaping its product portfolio through strategic acquisitions and non-core asset divestitures to transform the portfolio and become a high-performing specialty pharmaceutical company. The company sold its Nuclear Imaging business and Intrathecal Therapy business to focus on its key areas. While 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, sales of Therakos is expected to decline. The generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. The company expects double-digit declines in revenues from this segment. Shares of the company have underperformed the industry so far in 2017.”
Several other analysts have also recently issued reports on MNK. UBS AG reaffirmed a “buy” rating and issued a $70.00 price target (down from $100.00) on shares of Mallinckrodt PLC in a report on Thursday, June 29th. They noted that the move was a valuation call. BidaskClub cut shares of Mallinckrodt PLC from a “hold” rating to a “sell” rating in a report on Tuesday, August 8th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $65.00 price target (down from $69.00) on shares of Mallinckrodt PLC in a report on Wednesday, August 9th. Deutsche Bank AG set a $56.00 price target on shares of Mallinckrodt PLC and gave the company a “buy” rating in a report on Wednesday, August 9th. Finally, Raymond James Financial, Inc. cut their price target on shares of Mallinckrodt PLC from $65.00 to $58.00 and set an “outperform” rating on the stock in a report on Wednesday, August 9th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and fifteen have given a buy rating to the stock. The company has an average rating of “Buy” and a consensus price target of $60.04.
Shares of Mallinckrodt PLC (MNK) traded up 0.06% during midday trading on Tuesday, hitting $32.30. 1,350,028 shares of the stock were exchanged. The firm’s market cap is $3.14 billion. The firm has a 50 day moving average of $36.24 and a 200 day moving average of $41.42. Mallinckrodt PLC has a 12-month low of $31.51 and a 12-month high of $68.43.
Mallinckrodt PLC (NYSE:MNK) last posted its quarterly earnings results on Tuesday, August 8th. The company reported $1.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.73 by $0.12. The firm had revenue of $824.50 million for the quarter, compared to analysts’ expectations of $829.56 million. Mallinckrodt PLC had a net margin of 12.64% and a return on equity of 15.28%. The firm’s quarterly revenue was down 4.9% on a year-over-year basis. During the same period in the prior year, the company posted $2.03 earnings per share. Equities analysts forecast that Mallinckrodt PLC will post $7.39 EPS for the current fiscal year.
In other news, insider Meredith B. Fischer purchased 1,280 shares of the stock in a transaction dated Wednesday, August 30th. The stock was acquired at an average price of $39.63 per share, for a total transaction of $50,726.40. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.53% of the stock is currently owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. grew its position in shares of Mallinckrodt PLC by 4,060.7% during the first quarter. BlackRock Inc. now owns 8,734,709 shares of the company’s stock worth $389,307,000 after acquiring an additional 8,524,773 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of Mallinckrodt PLC by 117.3% during the second quarter. Ameriprise Financial Inc. now owns 1,937,444 shares of the company’s stock worth $86,815,000 after acquiring an additional 1,045,757 shares during the last quarter. Icon Advisers Inc. Co. grew its position in shares of Mallinckrodt PLC by 165.6% during the second quarter. Icon Advisers Inc. Co. now owns 114,200 shares of the company’s stock worth $5,117,000 after acquiring an additional 71,200 shares during the last quarter. Alliancebernstein L.P. grew its position in shares of Mallinckrodt PLC by 15.4% during the second quarter. Alliancebernstein L.P. now owns 3,348,807 shares of the company’s stock worth $150,060,000 after acquiring an additional 448,011 shares during the last quarter. Finally, LSV Asset Management grew its position in shares of Mallinckrodt PLC by 24.4% during the second quarter. LSV Asset Management now owns 1,249,612 shares of the company’s stock worth $55,995,000 after acquiring an additional 244,753 shares during the last quarter. Institutional investors and hedge funds own 97.36% of the company’s stock.
Mallinckrodt PLC Company Profile
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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