Zacks Investment Research Lowers GlaxoSmithKline (GSK) to Hold
Zacks Investment Research cut shares of GlaxoSmithKline (NYSE:GSK) from a buy rating to a hold rating in a research note issued to investors on Thursday morning.
According to Zacks, “We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Data from several of the late-state pipeline programs are expected in 2018. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Juluca – have strengthened Glaxo’s competitive position. After underperforming the broader industry in 2017, Glaxo’s shares have picked up this year. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. Meanwhile its top-selling respiratory product, Advair is also expected to face generic competition in the United States this year, which will hurt sales. Estimates have gone up ahead of Q1 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”
GSK has been the topic of a number of other research reports. ValuEngine cut shares of GlaxoSmithKline from a buy rating to a hold rating in a research note on Sunday, December 31st. UBS reiterated a buy rating on shares of GlaxoSmithKline in a research note on Monday, January 15th. Barclays upgraded shares of GlaxoSmithKline from an equal weight rating to an overweight rating in a research note on Tuesday, January 16th. JPMorgan Chase reiterated a neutral rating on shares of GlaxoSmithKline in a research note on Thursday, January 11th. Finally, BNP Paribas upgraded shares of GlaxoSmithKline from a neutral rating to an outperform rating in a research note on Wednesday, April 4th. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and five have given a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $40.21.
GlaxoSmithKline (NYSE:GSK) last announced its earnings results on Wednesday, February 7th. The pharmaceutical company reported $0.72 EPS for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.03. The firm had revenue of $10.14 billion for the quarter, compared to analysts’ expectations of $9.89 billion. GlaxoSmithKline had a net margin of 4.97% and a return on equity of 130.63%. analysts expect that GlaxoSmithKline will post 2.92 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, April 12th. Shareholders of record on Friday, February 23rd were given a $0.633 dividend. This is a positive change from GlaxoSmithKline’s previous quarterly dividend of $0.50. The ex-dividend date was Thursday, February 22nd. This represents a $2.53 dividend on an annualized basis and a yield of 6.33%. GlaxoSmithKline’s payout ratio is 89.93%.
Large investors have recently modified their holdings of the business. Field & Main Bank purchased a new position in GlaxoSmithKline in the 4th quarter worth about $132,000. Amussen Hunsaker Associates LLC purchased a new position in GlaxoSmithKline in the 4th quarter worth about $141,000. First Dallas Securities Inc. purchased a new position in GlaxoSmithKline in the 4th quarter worth about $142,000. California Capital Advisors Inc. purchased a new position in GlaxoSmithKline in the 4th quarter worth about $210,000. Finally, Capital Investment Advisory Services LLC purchased a new position in GlaxoSmithKline in the 4th quarter worth about $219,000. 10.96% of the stock is owned by institutional investors and hedge funds.
GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterials, dermatology, rare diseases, immuno-inflammation, and HIV, as well as vaccines.
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