The Medicines (MDCO) Stock Rating Lowered by Zacks Investment Research
The Medicines (NASDAQ:MDCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “The Medicines Co.’s Angiomax sales eroding due to presence of generics. the company’s ability to successfully develop and bring in new products to the market is highly important for growth. Any regulatory setback would weigh heavily on the stock. The company’s shares have underperformed the industry in a year’s time. However, pipeline boasts a potential blockbuster candidate, inclisiran. Moreover, the company implemented a workforce lay-off last year for better alignment of its cost and structure. We are also encouraged by The Medicines Co.’s regular divestiture of non-core products. This would help optimize its capital structure and enhance its liquidity position. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has negative record of earnings surprises in recent quarters.”
Other equities research analysts have also recently issued research reports about the company. BidaskClub cut The Medicines from a “hold” rating to a “sell” rating in a research note on Saturday, March 24th. Oppenheimer reissued a “buy” rating on shares of The Medicines in a research note on Thursday, March 22nd. JPMorgan Chase reissued an “overweight” rating and issued a $45.00 price target on shares of The Medicines in a research note on Wednesday, January 24th. Citigroup raised The Medicines from a “neutral” rating to a “buy” rating and set a $40.00 price target for the company in a research note on Monday, January 22nd. Finally, ValuEngine raised The Medicines from a “sell” rating to a “hold” rating in a research note on Thursday, March 1st. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and seven have given a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $50.00.
The Medicines (NASDAQ:MDCO) last issued its quarterly earnings results on Wednesday, February 21st. The company reported ($2.19) earnings per share for the quarter, missing the consensus estimate of ($1.48) by ($0.71). The company had revenue of $8.60 million during the quarter, compared to analyst estimates of $20.71 million. The Medicines had a negative net margin of 1,035.27% and a negative return on equity of 316.40%. The company’s quarterly revenue was down 50.6% on a year-over-year basis. During the same period in the previous year, the company posted ($1.19) EPS. sell-side analysts forecast that The Medicines will post -2.71 earnings per share for the current year.
In related news, Director William Crouse sold 7,500 shares of the firm’s stock in a transaction that occurred on Wednesday, March 21st. The stock was sold at an average price of $32.26, for a total transaction of $241,950.00. Following the completion of the sale, the director now owns 60,633 shares of the company’s stock, valued at $1,956,020.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 8.22% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC bought a new position in The Medicines in the third quarter worth approximately $198,000. California Public Employees Retirement System boosted its holdings in The Medicines by 1.3% in the third quarter. California Public Employees Retirement System now owns 159,600 shares of the company’s stock worth $5,912,000 after acquiring an additional 2,000 shares in the last quarter. Nisa Investment Advisors LLC boosted its holdings in The Medicines by 27.1% in the fourth quarter. Nisa Investment Advisors LLC now owns 10,780 shares of the company’s stock worth $295,000 after acquiring an additional 2,300 shares in the last quarter. Atria Investments LLC bought a new position in The Medicines in the fourth quarter worth approximately $297,000. Finally, Schwab Charles Investment Management Inc. boosted its holdings in The Medicines by 5.6% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 318,462 shares of the company’s stock worth $8,707,000 after acquiring an additional 16,923 shares in the last quarter.
COPYRIGHT VIOLATION NOTICE: “The Medicines (MDCO) Stock Rating Lowered by Zacks Investment Research” was posted by The Cerbat Gem and is owned by of The Cerbat Gem. If you are reading this article on another website, it was illegally copied and republished in violation of international trademark and copyright laws. The original version of this article can be read at https://www.thecerbatgem.com/2018/04/17/the-medicines-mdco-stock-rating-lowered-by-zacks-investment-research.html.
About The Medicines
The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin).
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for The Medicines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Medicines and related companies with MarketBeat.com's FREE daily email newsletter.