Sucampo Pharmaceuticals (SCMP) Downgraded by Zacks Investment Research to Hold

Sucampo Pharmaceuticals (NASDAQ:SCMP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.

According to Zacks, “Sucampo’s pending acquisition by Mallinckrodt for $1.2 billion have raised investor concerns that the latter may be underpaying for the company. A sNDA for label expansion of Amitizia in pediatric functional constipation is under review. Also, Sucampo’s collaborations with firms like Takeda and Mylan for Amitiza’s commercialization is a big positive. Moreover, the Vtesse acquisition added a pivotal program in Niemann-Pick Disease type C1 to its pipeline. However, Sucampo’s dependence on Amitiza for growth is concerning with few companies trying to market and sell generic version of Amitiza. Moreover, Sucampo discontinued Amitzia’s sprinkle formulation development as it did not meet bioequivalence with capsule formulation. Shares of the company have outperformed the industry. Estimates have remained stable ahead of the Q4 earnings results. The company has a mixed record of earnings surprises in recent quarters.”

Other equities analysts have also recently issued research reports about the company. UBS Group decreased their price objective on Sucampo Pharmaceuticals from $19.00 to $15.00 and set a “buy” rating for the company in a report on Thursday, October 12th. Nomura started coverage on Sucampo Pharmaceuticals in a report on Monday, December 18th. They issued a “buy” rating and a $43.00 price objective for the company. Maxim Group set a $23.00 price objective on Sucampo Pharmaceuticals and gave the company a “buy” rating in a report on Thursday, December 7th. B. Riley raised their price objective on Sucampo Pharmaceuticals from $14.00 to $18.00 and gave the company a “buy” rating in a report on Wednesday, December 6th. Finally, BidaskClub upgraded Sucampo Pharmaceuticals from a “hold” rating to a “buy” rating in a report on Tuesday, December 5th. Eight investment analysts have rated the stock with a hold rating, four have assigned a buy rating and two have assigned a strong buy rating to the company. Sucampo Pharmaceuticals has an average rating of “Buy” and an average target price of $20.25.

Sucampo Pharmaceuticals (NASDAQ SCMP) remained flat at $$18.00 during mid-day trading on Friday. The stock had a trading volume of 1,265,840 shares, compared to its average volume of 2,694,875. The stock has a market cap of $849.02, a P/E ratio of -5.47, a PEG ratio of 5.06 and a beta of 1.38. The company has a debt-to-equity ratio of 7.37, a quick ratio of 4.46 and a current ratio of 5.11. Sucampo Pharmaceuticals has a 12-month low of $9.30 and a 12-month high of $18.75.

Sucampo Pharmaceuticals (NASDAQ:SCMP) last announced its quarterly earnings data on Wednesday, November 1st. The biopharmaceutical company reported $0.27 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.02. The company had revenue of $61.27 million during the quarter, compared to analysts’ expectations of $58.05 million. Sucampo Pharmaceuticals had a positive return on equity of 74.58% and a negative net margin of 60.24%. Sucampo Pharmaceuticals’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.30 EPS. research analysts anticipate that Sucampo Pharmaceuticals will post 1.12 earnings per share for the current year.

In related news, insider Peter A. Kiener sold 50,000 shares of the firm’s stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $16.50, for a total value of $825,000.00. Following the completion of the sale, the insider now directly owns 52,023 shares in the company, valued at approximately $858,379.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 4.13% of the company’s stock.

A number of large investors have recently modified their holdings of SCMP. JPMorgan Chase & Co. acquired a new stake in Sucampo Pharmaceuticals in the 2nd quarter valued at about $117,000. Trexquant Investment LP acquired a new stake in Sucampo Pharmaceuticals in the 3rd quarter valued at about $122,000. Nine Chapters Capital Management LLC acquired a new stake in Sucampo Pharmaceuticals in the 3rd quarter valued at about $127,000. Stifel Financial Corp acquired a new stake in Sucampo Pharmaceuticals in the 2nd quarter valued at about $131,000. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in Sucampo Pharmaceuticals during the second quarter worth approximately $132,000. Institutional investors and hedge funds own 65.16% of the company’s stock.

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Sucampo Pharmaceuticals Company Profile

Sucampo Pharmaceuticals, Inc is a biopharmaceutical company. The Company is focused on the development and commercialization of pharmaceutical products. Its primary focus areas are gastroenterology, ophthalmology and oncology-related disorders. Its product candidates include VTS-270, Lubiprostone (AMITIZA), Unoprostone is opropyl (RESCULA) and CPP-1X/sulindac combination product.

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