Mallinckrodt (MNK) Rating Increased to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Mallinckrodt (NYSE:MNK) from a strong sell rating to a hold rating in a research note published on Tuesday morning.
According to Zacks, “Mallinckrodt is selling its hemostasis products for Baxter. The company aims to focus better on its specialty pharmaceutical business after having sold its Nuclear Imaging business.Mallinckrodt is facing challenging conditions as lead drug Acthar sales declined on volume while weaknesses in the generics segment persist. Acthar declined as specialty drugs face payer environment and the decline is expected to continue in the fourth quarter as well. 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. Shares of the company have underperformed the industry in the last six months. A U.S. District Court recently invalidated 11 patents covering its second-largest product Inomax. As a result, Mallinckrodt is looking to diversify its portfolio with the recently announced Sucampo acquisition and counter the decline in existing drugs.”
Several other research analysts have also issued reports on the stock. Mizuho reaffirmed a neutral rating and issued a $21.00 target price (down previously from $22.00) on shares of Mallinckrodt in a research note on Tuesday. Cantor Fitzgerald set a $42.00 target price on shares of Mallinckrodt and gave the company a buy rating in a research note on Monday, January 8th. Canaccord Genuity set a $24.00 target price on shares of Mallinckrodt and gave the company a hold rating in a research note on Sunday, January 7th. Leerink Swann assumed coverage on shares of Mallinckrodt in a research note on Tuesday, January 2nd. They issued a market perform rating and a $26.00 target price on the stock. Finally, Wells Fargo & Co reaffirmed a hold rating on shares of Mallinckrodt in a research note on Monday, January 1st. Two equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus target price of $44.99.
Mallinckrodt (NYSE:MNK) last issued its quarterly earnings data on Tuesday, November 7th. The company reported $1.97 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.17. The firm had revenue of $793.90 million for the quarter, compared to analyst estimates of $808.93 million. Mallinckrodt had a net margin of 11.43% and a return on equity of 14.79%. The company’s revenue was down 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.04 EPS. analysts expect that Mallinckrodt will post 7.21 EPS for the current year.
In other news, General Counsel Michael-Bryant Hicks purchased 7,900 shares of the business’s stock in a transaction that occurred on Thursday, November 9th. The shares were acquired at an average cost of $20.80 per share, for a total transaction of $164,320.00. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director David R. Carlucci purchased 10,000 shares of the business’s stock in a transaction that occurred on Thursday, November 9th. The stock was purchased at an average price of $21.83 per share, for a total transaction of $218,300.00. Following the completion of the transaction, the director now directly owns 26,020 shares in the company, valued at $568,016.60. The disclosure for this purchase can be found here. Insiders purchased a total of 30,460 shares of company stock worth $659,486 over the last quarter. 0.77% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the stock. Sterling Capital Management LLC acquired a new stake in shares of Mallinckrodt in the 2nd quarter valued at approximately $204,000. Shelton Capital Management acquired a new stake in shares of Mallinckrodt in the 3rd quarter valued at approximately $205,000. Cubist Systematic Strategies LLC raised its position in shares of Mallinckrodt by 748.1% in the 3rd quarter. Cubist Systematic Strategies LLC now owns 7,989 shares of the company’s stock valued at $299,000 after acquiring an additional 7,047 shares during the period. Pinnacle Associates Ltd. raised its holdings in Mallinckrodt by 69.8% during the 3rd quarter. Pinnacle Associates Ltd. now owns 8,025 shares of the company’s stock worth $300,000 after buying an additional 3,300 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. acquired a new stake in Mallinckrodt during the 3rd quarter worth approximately $305,000. Institutional investors and hedge funds own 97.35% of the company’s stock.
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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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