Mallinckrodt (NYSE:MNK) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Mallinckrodt is selling its hemostasis products for Baxter. The company aims to focus better on its specialty pharmaceutical business after having sold its Nuclear Imaging business.Mallinckrodt is facing challenging conditions as lead drug Acthar sales declined on volume while weaknesses in the generics segment persist. Acthar declined as specialty drugs face payer environment and the decline is expected to continue in the fourth quarter as well. The company's generic segment continues to face weakness as various product categories are witnessing stiff competition, which is hurting both their volumes and prices. Shares of the company have underperformed the industry in the last six months. A U.S. District Court recently invalidated 11 patents covering its second-largest product Inomax. As a result, Mallinckrodt is looking to diversify its portfolio with the recently announced Sucampo acquisition and counter the decline in existing drugs.”
A number of other equities research analysts have also recently commented on the company. Mizuho reaffirmed a “neutral” rating and set a $21.00 price objective (down from $22.00) on shares of Mallinckrodt in a research note on Tuesday. Cantor Fitzgerald set a $42.00 target price on Mallinckrodt and gave the stock a “buy” rating in a report on Monday, January 8th. Canaccord Genuity set a $24.00 target price on Mallinckrodt and gave the stock a “hold” rating in a report on Sunday, January 7th. Leerink Swann assumed coverage on Mallinckrodt in a report on Tuesday, January 2nd. They set a “market perform” rating and a $26.00 target price on the stock. Finally, Wells Fargo & Co reiterated a “hold” rating on shares of Mallinckrodt in a report on Monday, January 1st. Two analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $44.99.
Shares of Mallinckrodt (NYSE MNK) traded up $0.60 during trading on Tuesday, hitting $23.50. The company had a trading volume of 2,490,375 shares, compared to its average volume of 3,190,000. The company has a current ratio of 1.38, a quick ratio of 1.05 and a debt-to-equity ratio of 1.08. Mallinckrodt has a twelve month low of $19.00 and a twelve month high of $55.32. The firm has a market capitalization of $2,230.00, a PE ratio of -1,175.00, a PEG ratio of 0.43 and a beta of 1.30.
Mallinckrodt (NYSE:MNK) last announced its quarterly earnings data on Tuesday, November 7th. The company reported $1.97 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.17. Mallinckrodt had a return on equity of 14.79% and a net margin of 11.43%. The business had revenue of $793.90 million during the quarter, compared to analysts’ expectations of $808.93 million. During the same period in the previous year, the firm earned $2.04 earnings per share. The firm’s quarterly revenue was down 10.5% compared to the same quarter last year. research analysts predict that Mallinckrodt will post 7.21 earnings per share for the current fiscal year.
In other news, Director David R. Carlucci purchased 10,000 shares of the business’s stock in a transaction dated Thursday, November 9th. The shares were bought at an average cost of $21.83 per share, for a total transaction of $218,300.00. Following the completion of the acquisition, the director now directly owns 26,020 shares in the company, valued at approximately $568,016.60. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Dr Kneeland Youngblood purchased 4,560 shares of the business’s stock in a transaction dated Tuesday, November 28th. The stock was purchased at an average price of $21.94 per share, for a total transaction of $100,046.40. Following the completion of the acquisition, the director now owns 19,789 shares of the company’s stock, valued at $434,170.66. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 30,460 shares of company stock worth $659,486. Corporate insiders own 0.77% of the company’s stock.
Several institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its holdings in shares of Mallinckrodt by 16.7% in the third quarter. Dimensional Fund Advisors LP now owns 2,522,330 shares of the company’s stock valued at $94,255,000 after purchasing an additional 360,516 shares in the last quarter. HealthCor Management L.P. bought a new stake in shares of Mallinckrodt in the second quarter valued at about $107,649,000. Ameriprise Financial Inc. lifted its holdings in shares of Mallinckrodt by 2.6% in the third quarter. Ameriprise Financial Inc. now owns 1,987,196 shares of the company’s stock valued at $74,260,000 after purchasing an additional 49,752 shares in the last quarter. Alyeska Investment Group L.P. lifted its holdings in shares of Mallinckrodt by 45.8% in the third quarter. Alyeska Investment Group L.P. now owns 1,535,583 shares of the company’s stock valued at $57,385,000 after purchasing an additional 482,591 shares in the last quarter. Finally, Orbimed Advisors LLC lifted its holdings in shares of Mallinckrodt by 15.7% in the third quarter. Orbimed Advisors LLC now owns 1,472,700 shares of the company’s stock valued at $55,035,000 after purchasing an additional 200,000 shares in the last quarter. Institutional investors own 97.35% of the company’s stock.
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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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