Mallinckrodt (NYSE:MNK) Shares Gap Down Following Analyst Downgrade

Mallinckrodt PLC (NYSE:MNK)’s stock price gapped down prior to trading on Monday after SVB Leerink lowered their price target on the stock from $2.00 to $1.50. The stock had previously closed at $1.20, but opened at $1.07. SVB Leerink currently has a market perform rating on the stock. Mallinckrodt shares last traded at $1.10, with a volume of 20,477 shares trading hands.

Other research analysts also recently issued reports about the company. ValuEngine raised Mallinckrodt from a “sell” rating to a “hold” rating in a research note on Tuesday, September 1st. Barclays reissued a “hold” rating on shares of Mallinckrodt in a research note on Wednesday, August 5th. BMO Capital Markets dropped their price objective on Mallinckrodt from $4.00 to $2.00 and set a “market perform” rating on the stock in a research note on Wednesday, August 5th. JPMorgan Chase & Co. downgraded Mallinckrodt from a “neutral” rating to an “underweight” rating in a research note on Tuesday, May 19th. Finally, Piper Sandler lowered Mallinckrodt from a “neutral” rating to an “underweight” rating in a research report on Tuesday, August 4th. Four analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company. Mallinckrodt presently has a consensus rating of “Hold” and an average target price of $2.70.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Aperio Group LLC increased its holdings in Mallinckrodt by 23.1% during the 1st quarter. Aperio Group LLC now owns 33,760 shares of the company’s stock worth $66,000 after purchasing an additional 6,338 shares in the last quarter. Virtu Financial LLC bought a new stake in Mallinckrodt during the 2nd quarter worth approximately $28,000. California Public Employees Retirement System increased its holdings in Mallinckrodt by 6.4% during the 2nd quarter. California Public Employees Retirement System now owns 193,805 shares of the company’s stock worth $519,000 after purchasing an additional 11,605 shares in the last quarter. ProShare Advisors LLC bought a new stake in Mallinckrodt during the 2nd quarter worth approximately $32,000. Finally, Sontag Advisory LLC increased its holdings in Mallinckrodt by 57.9% during the 2nd quarter. Sontag Advisory LLC now owns 40,000 shares of the company’s stock worth $107,000 after purchasing an additional 14,668 shares in the last quarter. 61.67% of the stock is owned by hedge funds and other institutional investors.

The company has a current ratio of 1.48, a quick ratio of 1.23 and a debt-to-equity ratio of 5.39. The business has a fifty day simple moving average of $1.60 and a 200 day simple moving average of $2.54. The stock has a market capitalization of $95.59 million, a P/E ratio of -0.04, a price-to-earnings-growth ratio of 0.01 and a beta of 3.00.

Mallinckrodt (NYSE:MNK) last announced its earnings results on Tuesday, August 4th. The company reported $1.89 earnings per share for the quarter, topping analysts’ consensus estimates of $1.34 by $0.55. Mallinckrodt had a positive return on equity of 34.26% and a negative net margin of 89.94%. The firm had revenue of $700.90 million for the quarter, compared to the consensus estimate of $630.19 million. During the same quarter in the previous year, the business earned $2.53 EPS. The company’s revenue was down 14.9% compared to the same quarter last year. As a group, research analysts forecast that Mallinckrodt PLC will post 6.33 earnings per share for the current year.

About Mallinckrodt (NYSE:MNK)

Mallinckrodt plc, together with its subsidiaries, develops, manufactures, markets, and distributes specialty pharmaceutical products and therapies in the United States, Europe, the Middle East, Africa, and internationally. It operates in two segments, Specialty Brands, and Specialty Generics and Amitiza.

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