GlaxoSmithKline (GSK) Lowered to Hold at Zacks Investment Research

GlaxoSmithKline (NYSE:GSK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday.

According to Zacks, “We are positive on Glaxo’s efforts to develop its pipeline. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Jucalla – have strengthened Glaxo’s competitive position. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. Meanwhile, its top-selling respiratory product, Advair is also expected to face generic competition in the United States next year, which will further hurt sales. The slowdown in sales of the Consumer Healthcare segment this year is also a concern. Glaxo’s shares underperformed the broader industry in 2017. However, estimates have gone up slightly ahead of Q4 earnings release. The company has a positive record of earnings surprises in recent quarters.”

Several other brokerages have also recently weighed in on GSK. JPMorgan Chase & Co. reaffirmed a “neutral” rating on shares of GlaxoSmithKline in a research report on Tuesday, October 24th. Investec lowered shares of GlaxoSmithKline from a “buy” rating to a “hold” rating in a research note on Monday, November 6th. Morgan Stanley lowered shares of GlaxoSmithKline from an “equal weight” rating to an “underweight” rating in a research note on Friday, September 8th. TheStreet upgraded shares of GlaxoSmithKline from a “c+” rating to a “b” rating in a research note on Wednesday, October 25th. Finally, Bank of America lowered shares of GlaxoSmithKline from a “buy” rating to a “neutral” rating in a research note on Thursday, October 26th. Three research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and five have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $38.17.

Shares of GlaxoSmithKline (GSK) traded up $0.65 during midday trading on Thursday, reaching $37.51. 7,250,701 shares of the company traded hands, compared to its average volume of 4,780,100. GlaxoSmithKline has a twelve month low of $34.52 and a twelve month high of $44.53. The company has a market cap of $92,141.43, a PE ratio of 30.75, a price-to-earnings-growth ratio of 2.15 and a beta of 0.98. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.44 and a current ratio of 0.64.

In other news, major shareholder Plc Glaxosmithkline acquired 428,571 shares of the firm’s stock in a transaction on Monday, November 6th. The stock was purchased at an average price of $14.00 per share, for a total transaction of $5,999,994.00. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 10.00% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. FMR LLC increased its stake in shares of GlaxoSmithKline by 5.9% during the 2nd quarter. FMR LLC now owns 25,024,276 shares of the pharmaceutical company’s stock worth $1,079,047,000 after purchasing an additional 1,389,238 shares during the last quarter. Fisher Asset Management LLC increased its stake in shares of GlaxoSmithKline by 2.3% during the 3rd quarter. Fisher Asset Management LLC now owns 12,828,251 shares of the pharmaceutical company’s stock worth $520,827,000 after purchasing an additional 293,866 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of GlaxoSmithKline by 112.1% during the 2nd quarter. Renaissance Technologies LLC now owns 9,338,000 shares of the pharmaceutical company’s stock worth $402,655,000 after purchasing an additional 4,935,900 shares during the last quarter. Hotchkis & Wiley Capital Management LLC increased its stake in shares of GlaxoSmithKline by 7.3% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 8,416,927 shares of the pharmaceutical company’s stock worth $341,727,000 after purchasing an additional 569,600 shares during the last quarter. Finally, Northern Trust Corp increased its stake in shares of GlaxoSmithKline by 2.9% during the 2nd quarter. Northern Trust Corp now owns 3,078,478 shares of the pharmaceutical company’s stock worth $132,743,000 after purchasing an additional 85,830 shares during the last quarter. Institutional investors own 9.81% of the company’s stock.

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GlaxoSmithKline Company Profile

GlaxoSmithKline plc is a global healthcare company. The Company operates through three segments: Pharmaceuticals, Vaccines and Consumer Healthcare. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases.

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