Mallinckrodt PLC (NYSE:MNK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Mallinckrodt is currently focused on reshaping its product portfolio through strategic acquisitions and non-core asset divestitures. The company’s acquire-to-invest policy is apparently paying off as both Inomax and Therakos continue to report solid demand along with Ofirmev. The performance of Acthar has been impressive too. We expect the recent acquisitions to provide further accretion to the bottom line in fiscal 2016. Mallinckrodt has decided to sell its Nuclear Imaging business (diagnostic imaging products) to IBA Molecular as the segment was facing challenges for quite some time now. On the other hand, the weakness in Specialty Generics segment due to stiff competition continues to hurt both volumes and prices. Estimates have been declining lately ahead of the company’s fiscal Q4 earnings release. However, the company has a positive record of earnings surprises in recent quarters.”
Other equities research analysts also recently issued reports about the stock. Goldman Sachs Group Inc. restated a “neutral” rating and issued a $83.00 target price on shares of Mallinckrodt PLC in a report on Friday, August 26th. Vetr upgraded shares of Mallinckrodt PLC from a “hold” rating to a “buy” rating and set a $88.80 target price for the company in a report on Monday, August 22nd. Barclays PLC restated an “overweight” rating and issued a $88.00 target price on shares of Mallinckrodt PLC in a report on Thursday, August 25th. Leerink Swann restated an “outperform” rating and issued a $92.00 target price (up from $91.00) on shares of Mallinckrodt PLC in a report on Friday, September 16th. Finally, Mizuho lowered their target price on shares of Mallinckrodt PLC from $91.00 to $89.00 and set a “buy” rating for the company in a report on Thursday, September 29th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and sixteen have assigned a buy rating to the company’s stock. Mallinckrodt PLC currently has a consensus rating of “Buy” and an average price target of $94.54.
Mallinckrodt PLC (NYSE:MNK) traded down 0.42% during midday trading on Tuesday, reaching $70.87. 475,307 shares of the company’s stock were exchanged. The stock’s 50 day moving average is $75.43 and its 200 day moving average is $66.30. Mallinckrodt PLC has a 52 week low of $50.90 and a 52 week high of $85.83. The firm has a market capitalization of $7.63 billion, a P/E ratio of 13.36 and a beta of 1.54.
Mallinckrodt PLC (NYSE:MNK) last issued its quarterly earnings results on Tuesday, August 2nd. The company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.00 by $0.20. The business earned $970.60 million during the quarter, compared to the consensus estimate of $920.35 million. Mallinckrodt PLC had a net margin of 16.39% and a return on equity of 17.78%. The company’s quarterly revenue was up .6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.05 earnings per share. On average, analysts expect that Mallinckrodt PLC will post $7.65 EPS for the current fiscal year.
Hedge funds have recently bought and sold shares of the stock. Mizuho Asset Management Co. Ltd. boosted its stake in Mallinckrodt PLC by 125.0% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,771 shares of the company’s stock valued at $108,000 after buying an additional 984 shares in the last quarter. Rational Advisors LLC acquired a new stake in Mallinckrodt PLC during the second quarter valued at $137,000. Advisor Group Inc. acquired a new stake in Mallinckrodt PLC during the second quarter valued at $196,000. Thrivent Financial for Lutherans acquired a new stake in Mallinckrodt PLC during the second quarter valued at $201,000. Finally, Laurel Wealth Advisors Inc. raised its stake in Mallinckrodt PLC by 0.5% in the second quarter. Laurel Wealth Advisors Inc. now owns 3,427 shares of the company’s stock valued at $208,000 after buying an additional 16 shares during the last quarter. 94.74% of the stock is currently owned by hedge funds and other institutional investors.
Mallinckrodt PLC Company Profile
Mallinckrodt public limited company (Mallinckrodt) is engaged in the specialty pharmaceuticals and nuclear imaging business. The Company develops, manufactures, markets and distributes specialty pharmaceutical and biopharmaceutical products, and nuclear imaging agents. The Company’s segments include Specialty Brands, Specialty Generics and Nuclear Imaging.
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