Embecta (NASDAQ:EMBC) Shares Gap Up After Better-Than-Expected Earnings

Embecta Corp. (NASDAQ:EMBC) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $11.35, but opened at $12.61. Embecta shares last traded at $11.34, with a volume of 254,893 shares trading hands.

The company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.67 by $0.04. Embecta had a negative return on equity of 24.62% and a net margin of 8.83%.The company’s revenue for the quarter was down .3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.65 EPS. Embecta has set its FY 2026 guidance at 2.800-3.00 EPS.

Embecta Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Friday, December 5th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 5.2%. The ex-dividend date of this dividend was Friday, December 5th. Embecta’s payout ratio is presently 36.81%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on EMBC shares. Wall Street Zen upgraded shares of Embecta from a “buy” rating to a “strong-buy” rating in a research report on Saturday, December 27th. BTIG Research reissued a “buy” rating on shares of Embecta in a report on Tuesday, November 25th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Embecta in a report on Wednesday, January 21st. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $18.50.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Larson Financial Group LLC raised its position in Embecta by 368.6% during the third quarter. Larson Financial Group LLC now owns 2,001 shares of the company’s stock valued at $28,000 after purchasing an additional 1,574 shares in the last quarter. Tower Research Capital LLC TRC increased its position in shares of Embecta by 542.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,371 shares of the company’s stock valued at $71,000 after purchasing an additional 6,224 shares during the last quarter. CWM LLC raised its holdings in shares of Embecta by 16.0% during the 2nd quarter. CWM LLC now owns 8,080 shares of the company’s stock valued at $78,000 after buying an additional 1,115 shares in the last quarter. Wexford Capital LP bought a new stake in Embecta in the 3rd quarter worth approximately $94,000. Finally, Humankind Investments LLC purchased a new stake in Embecta in the second quarter worth approximately $111,000. Institutional investors own 93.83% of the company’s stock.

Embecta Price Performance

The stock has a market capitalization of $677.66 million, a PE ratio of 7.02 and a beta of 1.11. The firm’s 50 day simple moving average is $11.84 and its 200 day simple moving average is $12.97.

Embecta Company Profile

Embecta Corp (NASDAQ: EMBC) is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.