PDL BioPharma Inc. (PDLI) Stock Rating Lowered by Zacks Investment Research
PDL BioPharma Inc. (NASDAQ:PDLI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “PDL BioPharma has made a strategic shift of late, whereby it is making equity investments in product-focused companies. The latest example is that of Noden Pharma. Recently, PDL BioPharma completed an initial equity investment of $75 million in privately held specialty pharmaceutical company, Noden Pharma, for the acquisition of global rights to manufacture, market and sell Tekturna and Tekturna HCT. The deal is expected to be immediately accretive to PDL BioPharma’s earnings. ARIAD deal is another positive for the company. Estimates have been mostly stable ahead of the company’s Q3 results. We note that the company derives revenues primarily from royalties, which is not a risk-free strategy. Uncertainties related to the future source of revenues is another cause of concern. The company’s revenues decreased materially in the second quarter of 2016 after it stopped receiving payments from certain Queen et al. patent licenses.”
Separately, Cowen and Company reissued a “hold” rating and set a $3.50 price target on shares of PDL BioPharma in a research report on Sunday, August 7th.
PDL BioPharma (NASDAQ:PDLI) traded down 2.19% during midday trading on Wednesday, hitting $3.12. 255,933 shares of the stock traded hands. The stock has a market cap of $516.48 million, a PE ratio of 2.22 and a beta of 0.71. PDL BioPharma has a 12 month low of $2.58 and a 12 month high of $4.79. The company has a 50-day moving average of $3.20 and a 200-day moving average of $3.25.
PDL BioPharma (NASDAQ:PDLI) last posted its quarterly earnings results on Thursday, August 4th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.08 by $0.01. PDL BioPharma had a return on equity of 38.94% and a net margin of 53.90%. The business had revenue of $21 million for the quarter, compared to the consensus estimate of $33.46 million. During the same quarter in the prior year, the company earned $0.47 EPS. The business’s revenue was down 84.8% compared to the same quarter last year. On average, equities research analysts anticipate that PDL BioPharma will post $0.51 earnings per share for the current year.
In related news, VP Peter S. Garcia acquired 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 9th. The shares were bought at an average price of $3.00 per share, with a total value of $30,000.00. Following the completion of the transaction, the vice president now directly owns 232,092 shares in the company, valued at $696,276. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.10% of the company’s stock.
A number of large investors have recently modified their holdings of the stock. Cubist Systematic Strategies LLC increased its stake in shares of PDL BioPharma by 43.5% in the second quarter. Cubist Systematic Strategies LLC now owns 32,310 shares of the company’s stock worth $101,000 after buying an additional 9,794 shares during the last quarter. Ifrah Financial Services Inc. increased its stake in shares of PDL BioPharma by 3.4% in the second quarter. Ifrah Financial Services Inc. now owns 33,643 shares of the company’s stock worth $106,000 after buying an additional 1,107 shares during the last quarter. Public Employees Retirement System of Ohio increased its stake in shares of PDL BioPharma by 23.2% in the second quarter. Public Employees Retirement System of Ohio now owns 36,100 shares of the company’s stock worth $113,000 after buying an additional 6,809 shares during the last quarter. Bayesian Capital Management LP bought a new stake in shares of PDL BioPharma during the first quarter worth $124,000. Finally, Janney Montgomery Scott LLC bought a new stake in shares of PDL BioPharma during the second quarter worth $127,000. 75.20% of the stock is currently owned by institutional investors.
About PDL BioPharma
PDL BioPharma, Inc, formerly Protein Design Labs, Inc, manages a portfolio of patents and royalty assets, consisting of its Queen et al. patents, license agreements with various biotechnology and pharmaceutical companies, and royalty and other assets acquired. The Company provides non-dilutive growth capital and financing solutions to late-stage public and private healthcare companies and offers immediate financial monetization of royalty streams to companies, academic institutions and inventors.
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