Mallinckrodt (MNK) Raised to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Mallinckrodt (NYSE:MNK) from a strong sell rating to a hold rating in a report published on Tuesday morning.

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.”

Several other research firms have also weighed in on MNK. ValuEngine raised Mallinckrodt from a hold rating to a buy rating in a research report on Monday, October 2nd. Cantor Fitzgerald set a $52.00 price target on Mallinckrodt and gave the stock a buy rating in a research report on Monday, October 2nd. Piper Jaffray Companies reaffirmed a buy rating and set a $67.00 price target on shares of Mallinckrodt in a research report on Thursday, October 5th. Canaccord Genuity lowered Mallinckrodt from a buy rating to a hold rating and decreased their target price for the stock from $77.00 to $40.00 in a report on Wednesday, October 4th. Finally, Mizuho lowered Mallinckrodt from a buy rating to a neutral rating and decreased their target price for the stock from $70.00 to $40.00 in a report on Wednesday, September 13th. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and seven have given a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $44.99.

Mallinckrodt (NYSE MNK) traded up $0.60 during trading hours on Tuesday, hitting $23.50. The company’s stock had a trading volume of 2,490,375 shares, compared to its average volume of 3,190,000. The firm has a market cap of $2,230.00, a price-to-earnings ratio of -1,175.00, a price-to-earnings-growth ratio of 0.43 and a beta of 1.30. Mallinckrodt has a 52-week low of $19.00 and a 52-week high of $55.32. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.38 and a quick ratio of 1.05.

Mallinckrodt (NYSE:MNK) last posted its quarterly earnings results on Tuesday, November 7th. The company reported $1.97 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.80 by $0.17. The firm had revenue of $793.90 million for the quarter, compared to analyst estimates of $808.93 million. Mallinckrodt had a return on equity of 14.79% and a net margin of 11.43%. The business’s quarterly revenue was down 10.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.04 EPS. equities research analysts forecast that Mallinckrodt will post 7.21 EPS for the current year.

In other news, CEO Mark Trudeau purchased 5,000 shares of Mallinckrodt stock in a transaction that occurred on Friday, November 10th. The stock was acquired at an average cost of $22.28 per share, for a total transaction of $111,400.00. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director David R. Carlucci purchased 10,000 shares of Mallinckrodt stock in a transaction that occurred on Thursday, November 9th. The stock was purchased at an average price of $21.83 per share, with a total value of $218,300.00. Following the completion of the purchase, the director now directly owns 26,020 shares in the company, valued at $568,016.60. The disclosure for this purchase can be found here. Insiders have purchased a total of 30,460 shares of company stock worth $659,486 over the last three months. 0.77% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MNK. Sterling Capital Management LLC bought a new stake in Mallinckrodt in the 2nd quarter valued at $204,000. Shelton Capital Management bought a new stake in shares of Mallinckrodt during the 3rd quarter valued at $205,000. Cubist Systematic Strategies LLC lifted its position in shares of Mallinckrodt by 748.1% during the 3rd quarter. Cubist Systematic Strategies LLC now owns 7,989 shares of the company’s stock valued at $299,000 after acquiring an additional 7,047 shares during the period. Pinnacle Associates Ltd. lifted its position in shares of Mallinckrodt by 69.8% during the 3rd quarter. Pinnacle Associates Ltd. now owns 8,025 shares of the company’s stock valued at $300,000 after acquiring an additional 3,300 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of Mallinckrodt during the 3rd quarter valued at $305,000. Institutional investors and hedge funds own 97.35% of the company’s stock.

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Mallinckrodt Company Profile

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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