Mallinckrodt PLC (NYSE:MNK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Mallinckrodt is currently focused on reshaping its product portfolio through strategic acquisitions and non-core asset divestitures. The company sold its Nuclear Imaging business due to lingering challenging conditions for quite some time. The company also sold its Intrathecal Therapy business to focus on its key areas. The generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. Weakness in shares persist as shares have underperformed the Medical-Generic Drugs industry so far in 2017. On the other hand, Acthar sales continue to be strong on the back of increased formulary positions and access for appropriate patients in both the commercial and public environments. The company is working on expanding Acthar's label further.”
Several other research firms have also issued reports on MNK. Jefferies Group LLC reissued a “buy” rating and issued a $70.00 target price on shares of Mallinckrodt PLC in a report on Friday, April 21st. Leerink Swann reaffirmed an “outperform” rating on shares of Mallinckrodt PLC in a report on Monday, March 20th. Guggenheim set a $98.00 price objective on shares of Mallinckrodt PLC and gave the company a “buy” rating in a report on Saturday, April 1st. Mizuho reaffirmed a “buy” rating and set a $73.00 price objective on shares of Mallinckrodt PLC in a report on Wednesday, May 31st. Finally, Deutsche Bank AG set a $68.00 price objective on shares of Mallinckrodt PLC and gave the company a “buy” rating in a report on Wednesday, May 31st. Two analysts have rated the stock with a sell rating, five have given a hold rating and fifteen have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $74.31.
Mallinckrodt PLC (NYSE MNK) opened at 44.10 on Tuesday. The stock has a 50 day moving average of $42.92 and a 200 day moving average of $47.15. Mallinckrodt PLC has a 1-year low of $38.80 and a 1-year high of $85.83. The stock’s market cap is $4.38 billion.
Mallinckrodt PLC (NYSE:MNK) last released its earnings results on Monday, May 8th. The company reported $1.68 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.63 by $0.05. The company had revenue of $810.90 million during the quarter, compared to analyst estimates of $781.23 million. Mallinckrodt PLC had a net margin of 16.01% and a return on equity of 16.33%. The firm’s quarterly revenue was down .6% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.01 EPS. Equities analysts anticipate that Mallinckrodt PLC will post $7.55 EPS for the current fiscal year.
In related news, VP Coleman N. Lannum III purchased 1,350 shares of the stock in a transaction that occurred on Friday, June 2nd. The stock was bought at an average cost of $42.89 per share, for a total transaction of $57,901.50. Following the completion of the transaction, the vice president now directly owns 30,955 shares in the company, valued at $1,327,659.95. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Steven J. Romano purchased 1,000 shares of the stock in a transaction that occurred on Friday, June 9th. The stock was bought at an average price of $39.88 per share, with a total value of $39,880.00. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 5,818 shares of company stock valued at $248,608. 0.77% of the stock is owned by corporate insiders.
Hedge funds have recently modified their holdings of the company. BlackRock Inc. increased its stake in Mallinckrodt PLC by 4,060.7% in the first quarter. BlackRock Inc. now owns 8,734,709 shares of the company’s stock valued at $389,307,000 after buying an additional 8,524,773 shares during the period. Alliancebernstein L.P. increased its stake in Mallinckrodt PLC by 1,455.5% in the first quarter. Alliancebernstein L.P. now owns 2,900,796 shares of the company’s stock valued at $129,288,000 after buying an additional 2,714,313 shares during the period. Norges Bank acquired a new stake in Mallinckrodt PLC during the fourth quarter valued at $45,574,000. Hotchkis & Wiley Capital Management LLC acquired a new stake in Mallinckrodt PLC during the first quarter valued at $36,464,000. Finally, Bank of America Corp DE increased its stake in Mallinckrodt PLC by 638.6% in the first quarter. Bank of America Corp DE now owns 746,838 shares of the company’s stock valued at $33,288,000 after buying an additional 645,718 shares during the period. Institutional investors own 96.39% of the company’s stock.
About Mallinckrodt PLC
Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs.
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