Embecta Corp. (NASDAQ:EMBC) Given Consensus Recommendation of “Strong Sell” by Analysts

Embecta Corp. (NASDAQ:EMBC) has been given an average rating of “Strong Sell” by the five research firms that are covering the company, MarketBeat.com reports. Three investment analysts have rated the stock with a sell rating and two have issued a hold rating on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $11.00.

Several research analysts have weighed in on the stock. Wall Street Zen downgraded shares of Embecta from a “strong-buy” rating to a “hold” rating in a report on Saturday, May 9th. Bank of America dropped their price objective on Embecta from $11.00 to $3.00 and set an “underperform” rating on the stock in a research note on Monday, May 18th. Mizuho cut their price objective on shares of Embecta from $12.00 to $5.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th. Weiss Ratings lowered shares of Embecta from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 6th. Finally, BTIG Research downgraded shares of Embecta from a “buy” rating to a “neutral” rating in a report on Tuesday, May 5th.

Hedge Funds Weigh In On Embecta

Hedge funds and other institutional investors have recently modified their holdings of the business. Allspring Global Investments Holdings LLC increased its position in shares of Embecta by 9.0% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 12,708 shares of the company’s stock valued at $148,000 after acquiring an additional 1,050 shares during the last quarter. Brooklyn Investment Group boosted its position in Embecta by 5.9% in the fourth quarter. Brooklyn Investment Group now owns 19,736 shares of the company’s stock worth $234,000 after purchasing an additional 1,098 shares during the last quarter. The Manufacturers Life Insurance Company boosted its position in Embecta by 5.4% in the second quarter. The Manufacturers Life Insurance Company now owns 21,589 shares of the company’s stock worth $209,000 after purchasing an additional 1,110 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Embecta by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company’s stock valued at $629,000 after purchasing an additional 1,159 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Embecta by 1.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 150,271 shares of the company’s stock valued at $1,785,000 after purchasing an additional 1,520 shares during the period. Hedge funds and other institutional investors own 93.83% of the company’s stock.

Embecta Stock Performance

Shares of Embecta stock opened at $3.08 on Friday. The stock has a market capitalization of $182.74 million, a PE ratio of 1.62 and a beta of 0.83. Embecta has a 52 week low of $2.77 and a 52 week high of $15.55. The stock has a 50 day moving average price of $5.88 and a two-hundred day moving average price of $9.17.

Embecta (NASDAQ:EMBC) last issued its earnings results on Tuesday, May 5th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.15). Embecta had a negative return on equity of 23.96% and a net margin of 10.73%.The firm had revenue of $221.80 million during the quarter, compared to the consensus estimate of $235.67 million. During the same quarter in the prior year, the business earned $0.70 earnings per share. Embecta’s revenue for the quarter was down 14.4% on a year-over-year basis. Embecta has set its FY 2026 guidance at 1.550-1.75 EPS. Research analysts forecast that Embecta will post 1.62 EPS for the current year.

Embecta Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Thursday, May 28th will be given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, May 28th. Embecta’s dividend payout ratio is presently 2.11%.

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.