Zacks Investment Research cut shares of PDL BioPharma (NASDAQ:PDLI) from a buy rating to a hold rating in a research report sent to investors on Monday.

According to Zacks, “PDL BioPharma is focused on acquiring and managing income-generating assets. It has royalty agreements with several companies, whereby it receives royalties on sales of their products. We are positive on the company’s recent strategic shift, wherein, it is making equity investments in product-focused companies. The company’s investment on Noden Pharma, focused on acquiring and optimizing established medicines, is also encouraging. Its shares have outperformed the industry so far this year. However, the company is heavily dependent on its partners for royalty revenues, which is not a risk-free strategy. We are also concerned about PDL BioPharma’s revenue stream in the future as its growth prospects rely on the timing and ability to acquire new income-generating assets for recurring revenues. Estimates have remained stable ahead of Q4 earnings. The company has a mixed record of earnings surprises in the recent quarters.”

A number of other brokerages have also weighed in on PDLI. BidaskClub lowered PDL BioPharma from a hold rating to a sell rating in a research note on Saturday, January 6th. ValuEngine upgraded PDL BioPharma from a hold rating to a buy rating in a research note on Saturday, November 25th. Finally, Cowen restated a hold rating and issued a $3.00 target price on shares of PDL BioPharma in a research note on Friday, October 27th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $3.33.

PDL BioPharma (NASDAQ:PDLI) remained flat at $$2.79 during trading on Monday. The company’s stock had a trading volume of 807,000 shares, compared to its average volume of 1,314,829. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.16 and a quick ratio of 3.10. PDL BioPharma has a 52 week low of $1.96 and a 52 week high of $3.55. The stock has a market capitalization of $430.61, a price-to-earnings ratio of 5.58 and a beta of 0.46.

PDL BioPharma (NASDAQ:PDLI) last released its quarterly earnings data on Thursday, November 2nd. The biotechnology company reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.01. PDL BioPharma had a return on equity of 9.20% and a net margin of 24.51%. The firm had revenue of $62.75 million during the quarter, compared to analyst estimates of $61.86 million. During the same period in the prior year, the company posted $0.08 earnings per share. The business’s revenue for the quarter was up 17.0% compared to the same quarter last year. sell-side analysts forecast that PDL BioPharma will post 0.67 earnings per share for the current fiscal year.

PDL BioPharma announced that its Board of Directors has approved a share buyback program on Monday, September 25th that permits the company to repurchase $25.00 million in shares. This repurchase authorization permits the biotechnology company to repurchase shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Hedge funds have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd acquired a new stake in PDL BioPharma in the third quarter worth about $131,000. Airain ltd increased its position in PDL BioPharma by 21.0% in the second quarter. Airain ltd now owns 56,911 shares of the biotechnology company’s stock worth $141,000 after purchasing an additional 9,893 shares during the period. Public Employees Retirement System of Ohio increased its position in PDL BioPharma by 18.4% in the second quarter. Public Employees Retirement System of Ohio now owns 65,612 shares of the biotechnology company’s stock worth $162,000 after purchasing an additional 10,189 shares during the period. Cubist Systematic Strategies LLC boosted its holdings in PDL BioPharma by 64.0% during the third quarter. Cubist Systematic Strategies LLC now owns 49,062 shares of the biotechnology company’s stock worth $166,000 after buying an additional 19,144 shares during the last quarter. Finally, BNP Paribas Arbitrage SA boosted its holdings in PDL BioPharma by 141.7% during the third quarter. BNP Paribas Arbitrage SA now owns 53,584 shares of the biotechnology company’s stock worth $182,000 after buying an additional 31,418 shares during the last quarter. Hedge funds and other institutional investors own 88.37% of the company’s stock.

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About PDL BioPharma

PDL BioPharma, Inc seeks to provide return for its shareholders by acquiring and managing a portfolio of companies, products, royalty agreements and debt facilities in the biotechnology, pharmaceutical and medical device industries. The Company’s segments include income generating assets and product sales.

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