Embecta (NASDAQ:EMBC) Shares Gap Up After Better-Than-Expected Earnings

Shares of Embecta Corp. (NASDAQ:EMBC) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $11.35, but opened at $12.61. Embecta shares last traded at $11.34, with a volume of 254,893 shares trading hands.

The company reported $0.71 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.04. The firm had revenue of $261.20 million during the quarter, compared to analyst estimates of $258.07 million. Embecta had a net margin of 12.92% and a negative return on equity of 26.66%. Embecta’s revenue for the quarter was down .3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.65 earnings per share. Embecta has set its FY 2026 guidance at 2.800-3.00 EPS.

Embecta Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Friday, February 27th will be given a dividend of $0.15 per share. The ex-dividend date is Friday, February 27th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 5.5%. Embecta’s dividend payout ratio (DPR) is presently 36.81%.

Embecta News Roundup

Here are the key news stories impacting Embecta this week:

• Positive Sentiment: Q1 results beat expectations — EPS $0.71 vs. $0.67 consensus and revenue $261.2M vs. $258.1M; management provided slide deck and press release that highlight execution on core products. Embecta Q1 Results
• Positive Sentiment: BTIG reaffirmed a Buy and set a $25 price target (material upside vs. current levels), which can boost investor sentiment and momentum. BTIG Reaffirmation
• Positive Sentiment: Board declared a quarterly cash dividend of $0.15/share (annualized yield ~5.7%) — supports income-focused investors and may attract yield-seeking flows. Dividend Announcement
• Neutral Sentiment: Earnings call materials and transcripts are available (slides, call transcript, presentation) for investors wanting detail on product trends, margin drivers and regional performance; these provide transparency but no new catalyst by themselves. Earnings Presentation
• Negative Sentiment: FY2026 EPS guidance of $2.80–3.00 is modestly below sell‑side consensus (~$2.89), which could cap upside as investors weigh near-term growth headwinds vs. one-time execution positives. Guidance Details

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Weiss Ratings reissued a “hold (c-)” rating on shares of Embecta in a research note on Wednesday, January 21st. BTIG Research reiterated a “buy” rating and set a $25.00 target price on shares of Embecta in a research report on Friday. Finally, Wall Street Zen upgraded shares of Embecta from a “buy” rating to a “strong-buy” rating in a research report on Saturday, December 27th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $18.50.

Institutional Trading of Embecta

Institutional investors have recently bought and sold shares of the stock. Larson Financial Group LLC increased its position in Embecta by 368.6% during the third quarter. Larson Financial Group LLC now owns 2,001 shares of the company’s stock valued at $28,000 after acquiring an additional 1,574 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in Embecta by 542.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,371 shares of the company’s stock valued at $71,000 after purchasing an additional 6,224 shares during the last quarter. CWM LLC raised its position in Embecta by 16.0% in the 2nd quarter. CWM LLC now owns 8,080 shares of the company’s stock worth $78,000 after purchasing an additional 1,115 shares during the period. Wexford Capital LP bought a new stake in Embecta in the third quarter worth about $94,000. Finally, Humankind Investments LLC bought a new stake in Embecta in the second quarter worth about $111,000. 93.83% of the stock is currently owned by institutional investors.

Embecta Price Performance

The firm has a market cap of $643.02 million, a PE ratio of 4.58 and a beta of 1.11. The company has a 50-day simple moving average of $11.76 and a 200-day simple moving average of $12.96.

About Embecta

Embecta Corp (NASDAQ: EMBC) is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.