Zacks Investment Research upgraded shares of GlaxoSmithKline (NYSE:GSK) from a hold rating to a buy rating in a research report sent to investors on Tuesday, January 9th. The brokerage currently has $42.00 price target on the pharmaceutical company’s stock.
According to Zacks, “Glaxo enjoys a diversified base and presence in different geographical areas. Glaxo should continue to see strong performance in its Pharmaceuticals and Vaccines business units. We are positive on the company’s efforts to develop its pipeline. We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Jucalla – have strengthened Glaxo’s competitive position. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. The slowdown in sales of the Consumer Healthcare segment this year is also a concern. Estimates have declined slightly ahead of Q4 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”
GSK has been the topic of several other research reports. UBS Group raised GlaxoSmithKline from a neutral rating to a buy rating and upped their target price for the company from $35.04 to $35.85 in a research report on Monday, November 27th. ValuEngine downgraded GlaxoSmithKline from a buy rating to a hold rating in a research report on Sunday, December 31st. Cowen set a $38.00 price target on GlaxoSmithKline and gave the stock a hold rating in a research report on Monday, December 11th. Argus reduced their price target on GlaxoSmithKline to $40.00 and set a buy rating on the stock in a research report on Thursday, November 30th. Finally, TheStreet raised GlaxoSmithKline from a c+ rating to a b rating in a research report on Wednesday, October 25th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and six have assigned a buy rating to the company’s stock. GlaxoSmithKline presently has an average rating of Hold and an average target price of $38.57.
GlaxoSmithKline (NYSE:GSK) last posted its earnings results on Wednesday, October 25th. The pharmaceutical company reported $0.85 EPS for the quarter, beating the consensus estimate of $0.84 by $0.01. GlaxoSmithKline had a return on equity of 115.30% and a net margin of 7.79%. sell-side analysts predict that GlaxoSmithKline will post 2.9 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, January 11th. Shareholders of record on Friday, November 10th were paid a dividend of $0.5037 per share. The ex-dividend date was Thursday, November 9th. This is a boost from GlaxoSmithKline’s previous quarterly dividend of $0.49. This represents a $2.01 annualized dividend and a yield of 5.37%. GlaxoSmithKline’s dividend payout ratio is presently 155.73%.
In other news, major shareholder Plc Glaxosmithkline purchased 428,571 shares of the company’s stock in a transaction dated Monday, November 6th. The stock was bought at an average cost of $14.00 per share, for a total transaction of $5,999,994.00. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. 10.00% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. 1st Global Advisors Inc. grew its holdings in GlaxoSmithKline by 0.4% during the 2nd quarter. 1st Global Advisors Inc. now owns 5,271 shares of the pharmaceutical company’s stock worth $227,000 after acquiring an additional 19 shares during the period. King Luther Capital Management Corp grew its holdings in GlaxoSmithKline by 1.0% during the 2nd quarter. King Luther Capital Management Corp now owns 5,432 shares of the pharmaceutical company’s stock worth $234,000 after acquiring an additional 55 shares during the period. Strategic Global Advisors LLC grew its holdings in GlaxoSmithKline by 0.6% during the 2nd quarter. Strategic Global Advisors LLC now owns 12,179 shares of the pharmaceutical company’s stock worth $525,000 after acquiring an additional 75 shares during the period. PagnatoKarp Partners LLC grew its holdings in GlaxoSmithKline by 1.4% during the 2nd quarter. PagnatoKarp Partners LLC now owns 5,812 shares of the pharmaceutical company’s stock worth $253,000 after acquiring an additional 80 shares during the period. Finally, Peapack Gladstone Financial Corp grew its holdings in GlaxoSmithKline by 1.0% during the 2nd quarter. Peapack Gladstone Financial Corp now owns 11,740 shares of the pharmaceutical company’s stock worth $506,000 after acquiring an additional 115 shares during the period. Institutional investors and hedge funds own 9.80% of the company’s stock.
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GlaxoSmithKline plc is a global healthcare company. The Company operates through three segments: Pharmaceuticals, Vaccines and Consumer Healthcare. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases.
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