AmerisourceBergen (ABC) Downgraded to Hold at Zacks Investment Research
AmerisourceBergen (NYSE:ABC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “AmerisourceBergen has been trading below the broader industry over the last year. However, the company is expected to benefit from generics growth. AmerisourceBergen has been actively pursuing acquisitions to strengthen its core areas. Acquisition of H.D. Smith, the largest independent wholesaler in the United States, is worthy of mention. Solid performance in the Pharmaceutical Distribution Segment is a positive. Strong sales in the oncology unit have enhanced AmerisourceBergen Drug Corporation (ABDC) sales. On the flip side, AmerisourceBergen faces headwinds due to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Furthermore, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. Cutthroat competition in niche space also adds to the woes.”
A number of other analysts have also recently commented on the company. Mizuho set a $92.00 price objective on AmerisourceBergen and gave the company a “hold” rating in a research report on Tuesday, October 24th. Cowen upgraded AmerisourceBergen from a “market perform” rating to an “outperform” rating in a research report on Tuesday, October 10th. Robert W. Baird upgraded AmerisourceBergen from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $89.00 to $96.00 in a research report on Thursday, October 5th. Deutsche Bank started coverage on AmerisourceBergen in a research report on Monday, December 4th. They set a “buy” rating and a $97.00 price target for the company. Finally, Goldman Sachs Group upgraded AmerisourceBergen from a “neutral” rating to a “buy” rating in a research report on Friday, December 15th. One analyst has rated the stock with a sell rating, seven have given a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and an average target price of $95.96.
AmerisourceBergen (NYSE:ABC) last posted its quarterly earnings data on Thursday, November 2nd. The company reported $1.33 EPS for the quarter, beating the Zacks’ consensus estimate of $1.32 by $0.01. The business had revenue of $39.12 billion during the quarter, compared to analysts’ expectations of $40.10 billion. AmerisourceBergen had a return on equity of 56.29% and a net margin of 0.27%. The business’s revenue was up 4.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.30 earnings per share. equities analysts forecast that AmerisourceBergen will post 6.19 EPS for the current fiscal year.
In other AmerisourceBergen news, Chairman Steven H. Collis sold 21,350 shares of the company’s stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $76.94, for a total value of $1,642,669.00. Following the completion of the sale, the chairman now directly owns 260,226 shares in the company, valued at approximately $20,021,788.44. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Dale Danilewitz sold 2,012 shares of the company’s stock in a transaction on Thursday, November 2nd. The shares were sold at an average price of $74.99, for a total value of $150,879.88. The disclosure for this sale can be found here. Insiders have sold 203,823 shares of company stock valued at $17,145,148 over the last quarter. 27.40% of the stock is owned by company insiders.
A number of large investors have recently modified their holdings of the business. Ridgewood Investments LLC grew its holdings in AmerisourceBergen by 16.7% in the 4th quarter. Ridgewood Investments LLC now owns 4,093 shares of the company’s stock valued at $376,000 after buying an additional 586 shares in the last quarter. Bremer Trust National Association grew its holdings in AmerisourceBergen by 4.5% in the 4th quarter. Bremer Trust National Association now owns 13,758 shares of the company’s stock valued at $1,264,000 after buying an additional 595 shares in the last quarter. Hexavest Inc. grew its holdings in AmerisourceBergen by 1.5% in the 4th quarter. Hexavest Inc. now owns 649,136 shares of the company’s stock valued at $59,604,000 after buying an additional 9,637 shares in the last quarter. Addenda Capital Inc. purchased a new stake in AmerisourceBergen in the 4th quarter valued at $4,599,000. Finally, Sawyer & Company Inc purchased a new stake in AmerisourceBergen in the 4th quarter valued at $2,385,000. Institutional investors own 67.83% of the company’s stock.
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AmerisourceBergen Company Profile
AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers.
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