Zacks Investment Research Lowers Lannett (LCI) to Hold

Zacks Investment Research cut shares of Lannett (NYSE:LCI) from a strong-buy rating to a hold rating in a report released on Tuesday.

According to Zacks, “Lannett Company manufactures and distributes high quality affordable generic medications that are the therapeutic equivalent of the brand-name pharmaceuticals. Their portfolio consists of numerous products across a wide range of therapeutic areas. Lannett believes that their ability to select viable products for development, efficiently develop such products, including obtaining any applicable regulatory approvals, vertically integrate themselves into certain specialty markets and achieve economies in production are all critical for their success in the generic pharmaceutical industry in which they operate. Lannett Company, Inc., continues to dedicate significant capital toward developing new products as they believe their success is linked to their ability to continually introduce new generic products into the marketplace. “

Several other research firms have also weighed in on LCI. ValuEngine upgraded Lannett from a hold rating to a buy rating in a report on Saturday, November 25th. Oppenheimer reiterated a hold rating on shares of Lannett in a report on Wednesday, February 7th. Goldman Sachs Group started coverage on Lannett in a report on Wednesday, January 24th. They set a neutral rating and a $21.00 target price on the stock. BMO Capital Markets reduced their target price on Lannett from $22.00 to $21.00 and set a market perform rating on the stock in a report on Thursday, February 8th. Finally, Roth Capital set a $25.00 target price on Lannett and gave the stock a buy rating in a report on Wednesday, February 7th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and two have issued a buy rating to the stock. Lannett presently has an average rating of Hold and a consensus target price of $20.83.

Shares of Lannett (NYSE:LCI) traded down $0.20 during trading on Tuesday, hitting $17.50. The company had a trading volume of 95,579 shares, compared to its average volume of 729,455. The company has a current ratio of 2.32, a quick ratio of 1.77 and a debt-to-equity ratio of 1.38. Lannett has a twelve month low of $14.90 and a twelve month high of $30.35. The firm has a market capitalization of $667.94, a PE ratio of 13.92, a PEG ratio of 1.13 and a beta of 2.51.

Lannett (NYSE:LCI) last announced its quarterly earnings data on Wednesday, February 7th. The company reported $1.06 EPS for the quarter, topping analysts’ consensus estimates of $0.86 by $0.20. Lannett had a return on equity of 18.85% and a net margin of 7.44%. The business had revenue of $184.31 million during the quarter, compared to analysts’ expectations of $190.92 million. During the same period in the previous year, the firm earned $0.92 earnings per share. The firm’s quarterly revenue was up 7.8% compared to the same quarter last year. research analysts predict that Lannett will post 3.12 earnings per share for the current fiscal year.

In other news, major shareholder David Farber sold 10,000 shares of the business’s stock in a transaction dated Tuesday, January 9th. The stock was sold at an average price of $25.01, for a total value of $250,100.00. Following the sale, the insider now directly owns 4,171,269 shares in the company, valued at $104,323,437.69. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Arthur P. Bedrosian sold 50,000 shares of the business’s stock in a transaction dated Friday, November 24th. The shares were sold at an average price of $26.75, for a total value of $1,337,500.00. Following the completion of the sale, the chief executive officer now owns 636,616 shares in the company, valued at $17,029,478. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 122,578 shares of company stock worth $3,243,757. Corporate insiders own 14.72% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the stock. The Manufacturers Life Insurance Company increased its position in shares of Lannett by 1.3% in the second quarter. The Manufacturers Life Insurance Company now owns 22,366 shares of the company’s stock valued at $456,000 after acquiring an additional 297 shares during the last quarter. Royal Bank of Canada increased its position in shares of Lannett by 10.6% in the second quarter. Royal Bank of Canada now owns 18,374 shares of the company’s stock valued at $374,000 after acquiring an additional 1,756 shares during the last quarter. Nationwide Fund Advisors increased its position in shares of Lannett by 7.3% in the second quarter. Nationwide Fund Advisors now owns 26,349 shares of the company’s stock valued at $538,000 after acquiring an additional 1,800 shares during the last quarter. Alps Advisors Inc. increased its position in shares of Lannett by 8.1% in the third quarter. Alps Advisors Inc. now owns 38,604 shares of the company’s stock valued at $712,000 after acquiring an additional 2,906 shares during the last quarter. Finally, California Public Employees Retirement System increased its position in shares of Lannett by 3.9% in the third quarter. California Public Employees Retirement System now owns 81,146 shares of the company’s stock valued at $1,497,000 after acquiring an additional 3,046 shares during the last quarter. 99.27% of the stock is currently owned by institutional investors and hedge funds.

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Lannett Company Profile

Lannett Company, Inc develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Company manufactures and/or distributes prescription products with the exception of a small portfolio of over-the-counter products manufactured by its subsidiary, Silarx Pharmaceuticals, Inc As of June 30, 2016, the Company’s products included Acetazolamide Tablets; Butalbital, Acetaminophen and Caffeine Tablets; Butalbital, Aspirin and Caffeine Capsules; C-Topical Solution; Digoxin Tablets; Glycolax Rx; Isosorbide Mononitrate CR; Levothyroxine Sodium Tablets; Methylphenidate HCL CD; Methylphenidate ER; Nifedipine CR; Omeprazole DR; Oxbutynin ER; Pantoprazole DR; Pilocarpine HCl Tablets; Triamterene w/Hydrochlorothiazide Capsules, and Ursodiol Capsules.

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