Mallinckrodt PLC (MNK) Rating Increased to Hold at Zacks Investment Research
Mallinckrodt PLC (NYSE:MNK) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.
According to Zacks, “Mallinckrodt is focused on reshaping its product portfolio through strategic acquisitions and non-core asset divestitures to transform the portfolio. The company sold its Nuclear Imaging business and Intrathecal Therapy business. Acthar sales continue to be strong on the back of increased formulary positions and access for appropriate patients in both the commercial and public environments and we expect Acthar sales to drive growth. However, sales of Therakos is expected to decline. The company's generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. The company expects double-digit declines in revenues from this segment. Shares of the company have underperformed the industry so far in 2017. A U.S. District Court recently invalidated 11 patents covering its second-largest product Inomax.”
A number of other analysts have also commented on MNK. Cantor Fitzgerald reiterated a “buy” rating and set a $52.00 price target on shares of Mallinckrodt PLC in a report on Thursday, November 2nd. BidaskClub lowered Mallinckrodt PLC from a “hold” rating to a “sell” rating in a report on Tuesday, August 8th. BMO Capital Markets reiterated an “outperform” rating and set a $65.00 price target (down from $69.00) on shares of Mallinckrodt PLC in a report on Wednesday, August 9th. Raymond James Financial, Inc. dropped their price target on Mallinckrodt PLC from $65.00 to $58.00 and set an “outperform” rating on the stock in a report on Wednesday, August 9th. Finally, Deutsche Bank AG set a $56.00 price target on Mallinckrodt PLC and gave the stock a “buy” rating in a report on Wednesday, August 9th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and thirteen have given a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $58.25.
Mallinckrodt PLC (NYSE MNK) opened at $20.11 on Monday. Mallinckrodt PLC has a fifty-two week low of $19.00 and a fifty-two week high of $68.12. The company has a quick ratio of 0.81, a current ratio of 1.06 and a debt-to-equity ratio of 1.05. The firm has a market capitalization of $3,097.63, a P/E ratio of 4.17, a PEG ratio of 0.44 and a beta of 1.46.
Mallinckrodt PLC (NYSE:MNK) last posted its earnings results on Tuesday, November 7th. The company reported $1.97 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.82 by $0.15. Mallinckrodt PLC had a return on equity of 15.28% and a net margin of 12.64%. The company had revenue of $793.90 million for the quarter, compared to analyst estimates of $808.93 million. During the same quarter last year, the company earned $2.04 earnings per share. The company’s revenue for the quarter was down 10.5% on a year-over-year basis. sell-side analysts forecast that Mallinckrodt PLC will post 7.38 EPS for the current fiscal year.
In related news, insider Meredith B. Fischer purchased 1,280 shares of Mallinckrodt PLC stock in a transaction dated Wednesday, August 30th. The stock was bought at an average cost of $39.63 per share, for a total transaction of $50,726.40. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 0.53% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Alliancebernstein L.P. grew its position in shares of Mallinckrodt PLC by 15.4% in the second quarter. Alliancebernstein L.P. now owns 3,348,807 shares of the company’s stock valued at $150,060,000 after purchasing an additional 448,011 shares in the last quarter. HealthCor Management L.P. purchased a new position in shares of Mallinckrodt PLC in the second quarter valued at $107,649,000. Dimensional Fund Advisors LP grew its position in shares of Mallinckrodt PLC by 33.9% in the second quarter. Dimensional Fund Advisors LP now owns 2,161,814 shares of the company’s stock valued at $96,868,000 after purchasing an additional 547,249 shares in the last quarter. Ameriprise Financial Inc. grew its position in shares of Mallinckrodt PLC by 2.6% in the third quarter. Ameriprise Financial Inc. now owns 1,987,196 shares of the company’s stock valued at $74,260,000 after purchasing an additional 49,752 shares in the last quarter. Finally, Janus Henderson Group PLC grew its position in shares of Mallinckrodt PLC by 6,828.1% in the second quarter. Janus Henderson Group PLC now owns 1,396,780 shares of the company’s stock valued at $62,590,000 after purchasing an additional 1,376,619 shares in the last quarter. Institutional investors own 97.96% of the company’s stock.
Mallinckrodt PLC Company Profile
Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs.
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