AmerisourceBergen (ABC) Raised to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of AmerisourceBergen (NYSE:ABC) from a sell rating to a hold rating in a research note issued to investors on Monday.
According to Zacks, “AmerisourceBergen continues to gain from, businesses like World Courier and Xcenda which have been raking in huge profits since quite some time. The company’s specialty distribution business also continues to contribute significantly to its topline. Additionally, AmerisourceBergen’s Global Commercialization Services and Animal Health unit saw a strong fourth quarter. A positive guidance for 2019 buoys optimism. On the flip side, dull performances in the company’s PharMEDium and Lash units have been a headwind in the last couple of quarters. Contraction in gross and operating margin in the last reported quarter raises concern. The company faces other headwinds like conversion of branded drugs and lower price generics. Cutthroat competition in the MedTech space adds to the woes. AmerisourceBergen has underperformed the industry in a year’s time.”
A number of other research firms have also weighed in on ABC. ValuEngine upgraded shares of AmerisourceBergen from a sell rating to a hold rating in a report on Wednesday, September 19th. Royal Bank of Canada set a $90.00 price objective on shares of AmerisourceBergen and gave the stock a hold rating in a research report on Wednesday, November 7th. Mizuho reaffirmed a neutral rating on shares of AmerisourceBergen in a research report on Wednesday, September 19th. Barclays reaffirmed a hold rating and issued a $84.00 price objective on shares of AmerisourceBergen in a research report on Sunday, January 6th. Finally, Morgan Stanley upped their price objective on shares of AmerisourceBergen from $88.00 to $91.00 and gave the stock an equal weight rating in a research report on Monday, December 3rd. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company. AmerisourceBergen currently has an average rating of Hold and an average target price of $99.83.
AmerisourceBergen (NYSE:ABC) last posted its earnings results on Tuesday, November 6th. The company reported $1.45 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.44 by $0.01. AmerisourceBergen had a net margin of 0.99% and a return on equity of 45.54%. The company had revenue of $43.30 billion for the quarter, compared to analyst estimates of $43.27 billion. During the same quarter in the prior year, the business posted $1.33 EPS. The firm’s revenue was up 10.7% compared to the same quarter last year. Equities analysts forecast that AmerisourceBergen will post 6.81 EPS for the current fiscal year.
In other news, EVP Gina Clark sold 29,549 shares of the stock in a transaction that occurred on Wednesday, November 21st. The shares were sold at an average price of $88.33, for a total transaction of $2,610,063.17. Following the completion of the transaction, the executive vice president now directly owns 45,344 shares of the company’s stock, valued at approximately $4,005,235.52. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathy H. Gaddes sold 2,652 shares of the stock in a transaction that occurred on Monday, October 22nd. The shares were sold at an average price of $92.96, for a total transaction of $246,529.92. Following the transaction, the executive vice president now directly owns 3,891 shares of the company’s stock, valued at $361,707.36. The disclosure for this sale can be found here. Insiders have sold a total of 140,101 shares of company stock valued at $12,142,506 over the last three months. Insiders own 27.30% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. Migdal Insurance & Financial Holdings Ltd. grew its position in shares of AmerisourceBergen by 140.9% during the 3rd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,142 shares of the company’s stock valued at $105,000 after acquiring an additional 668 shares during the period. Financial Gravity Wealth Inc. grew its position in shares of AmerisourceBergen by 93.2% during the 3rd quarter. Financial Gravity Wealth Inc. now owns 1,254 shares of the company’s stock valued at $108,000 after acquiring an additional 605 shares during the period. Truvestments Capital LLC bought a new position in shares of AmerisourceBergen during the 3rd quarter valued at approximately $120,000. Livingston Group Asset Management CO operating as Southport Capital Management bought a new position in shares of AmerisourceBergen during the 3rd quarter valued at approximately $130,000. Finally, Centaurus Financial Inc. bought a new position in shares of AmerisourceBergen during the 2nd quarter valued at approximately $129,000. 65.87% of the stock is owned by hedge funds and other institutional investors.
AmerisourceBergen Company Profile
AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers.
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