Koninklijke Philips NV (PHG) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Koninklijke Philips NV (NYSE:PHG) from a hold rating to a sell rating in a report published on Monday morning.

According to Zacks, “Over the past one year, Philips’ shares have underperformed the Zacks categorized Electronic Product Miscellaneous industry average.During the last reported quarter, company’s numbers suffered due to soft growth at its Diagnosis & Treatment division. Higher investment costs at the Connected Care division also hurt the bottom line during the fourth-quarter of 2016. Further, Philips is under scrutiny from the FDA concerning a defibrillators dispute, which, per the company, could have a meaningful impact on the operations of this business. These factors point to possible troubled times for the company ahead. Lackluster growth prospects of the healthcare markets across the globe in the near term also remain a headwind to growth. However, Philips has implemented three comprehensive performance improvement and change-initiative programs, which will likely prove conducive to its operations.”

PHG has been the subject of several other reports. Deutsche Bank AG reissued a buy rating on shares of Koninklijke Philips NV in a research note on Tuesday, March 21st. Citigroup Inc reissued a buy rating on shares of Koninklijke Philips NV in a research note on Thursday, January 26th. Morgan Stanley lowered shares of Koninklijke Philips NV from an overweight rating to an equal weight rating in a research note on Monday, December 12th. Finally, Berenberg Bank initiated coverage on shares of Koninklijke Philips NV in a research note on Tuesday, February 7th. They set a hold rating for the company. Four equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The company currently has an average rating of Buy and a consensus target price of $31.00.

Koninklijke Philips NV (NYSE:PHG) traded up 1.19% during midday trading on Monday, hitting $34.94. The stock had a trading volume of 2,101,948 shares. Koninklijke Philips NV has a 12-month low of $23.00 and a 12-month high of $34.99. The stock has a 50-day moving average price of $32.03 and a 200 day moving average price of $30.24. The firm has a market cap of $32.23 billion, a P/E ratio of 21.12 and a beta of 1.39.

Koninklijke Philips NV (NYSE:PHG) last released its earnings results on Monday, April 24th. The technology company reported $0.20 EPS for the quarter, meeting the consensus estimate of $0.20. Koninklijke Philips NV had a net margin of 5.89% and a return on equity of 9.00%. The business earned $5.72 billion during the quarter, compared to analyst estimates of $5.70 billion. During the same period in the prior year, the business earned $0.03 earnings per share. The business’s quarterly revenue was up 3.8% on a year-over-year basis. On average, equities analysts anticipate that Koninklijke Philips NV will post $1.95 earnings per share for the current fiscal year.

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The business also recently disclosed an annual dividend, which will be paid on Wednesday, June 14th. Shareholders of record on Tuesday, May 16th will be paid a $0.8634 dividend. This represents a yield of 2.95%. The ex-dividend date of this dividend is Friday, May 12th. This is a positive change from Koninklijke Philips NV’s previous annual dividend of $0.75. Koninklijke Philips NV’s dividend payout ratio is currently 43.86%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wetherby Asset Management Inc. raised its position in Koninklijke Philips NV by 2.2% in the first quarter. Wetherby Asset Management Inc. now owns 17,341 shares of the technology company’s stock valued at $557,000 after buying an additional 377 shares in the last quarter. IFP Advisors Inc raised its position in Koninklijke Philips NV by 10.5% in the first quarter. IFP Advisors Inc now owns 4,748 shares of the technology company’s stock valued at $152,000 after buying an additional 452 shares in the last quarter. Sit Investment Associates Inc. bought a new position in Koninklijke Philips NV during the first quarter valued at $1,310,000. Profund Advisors LLC raised its position in Koninklijke Philips NV by 51.0% in the first quarter. Profund Advisors LLC now owns 37,118 shares of the technology company’s stock valued at $1,192,000 after buying an additional 12,529 shares in the last quarter. Finally, Huntington National Bank raised its position in Koninklijke Philips NV by 13.9% in the first quarter. Huntington National Bank now owns 29,141 shares of the technology company’s stock valued at $936,000 after buying an additional 3,546 shares in the last quarter. Hedge funds and other institutional investors own 6.92% of the company’s stock.

Koninklijke Philips NV Company Profile

Koninklijke Philips N.V. is a health technology company. The Company’s segments include Personal Health businesses, Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, and Lighting. The Company’s Personal Health businesses segment is engaged in the health continuum, delivering integrated, connected solutions that support healthier lifestyles and those living with chronic disease.

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