Zacks Investment Research lowered shares of AmerisourceBergen (NYSE:ABC) from a buy rating to a hold rating in a research report report published on Monday.
According to Zacks, “AmerisourceBergen has been trading below the broader industry over the last year. However, the company is expected to benefit from generics growth. AmerisourceBergen has been actively pursuing acquisitions to strengthen its core areas. Acquisition of H.D. Smith, the largest independent wholesaler in the United States, is worthy of mention. Solid performance in the Pharmaceutical Distribution Segment is a positive. Strong sales in the oncology unit have enhanced AmerisourceBergen Drug Corporation (ABDC) sales. On the flip side, AmerisourceBergen faces headwinds due to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Furthermore, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. Cutthroat competition in niche space also adds to the woes.”
Other research analysts have also issued research reports about the company. Cowen upgraded AmerisourceBergen from a market perform rating to an outperform rating in a report on Tuesday, October 10th. Jefferies Group set a $85.00 price target on AmerisourceBergen and gave the stock a hold rating in a report on Sunday, October 29th. Goldman Sachs Group upgraded AmerisourceBergen from a neutral rating to a buy rating in a report on Friday, December 15th. Leerink Swann set a $105.00 price target on AmerisourceBergen and gave the stock a buy rating in a report on Tuesday, January 2nd. Finally, Robert W. Baird set a $99.00 price target on AmerisourceBergen and gave the stock a buy rating in a report on Friday, December 1st. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of Buy and a consensus target price of $95.96.
AmerisourceBergen (NYSE:ABC) last announced its earnings results on Thursday, November 2nd. The company reported $1.33 EPS for the quarter, beating the consensus estimate of $1.32 by $0.01. AmerisourceBergen had a return on equity of 56.29% and a net margin of 0.27%. The company had revenue of $39.12 billion for the quarter, compared to analyst estimates of $40.10 billion. During the same quarter in the prior year, the company earned $1.30 EPS. The firm’s revenue for the quarter was up 4.2% compared to the same quarter last year. analysts predict that AmerisourceBergen will post 6.19 earnings per share for the current fiscal year.
In other news, Chairman Steven H. Collis sold 21,350 shares of the stock in a transaction that occurred on Wednesday, November 1st. The stock was sold at an average price of $76.94, for a total value of $1,642,669.00. Following the completion of the sale, the chairman now directly owns 260,226 shares of the company’s stock, valued at $20,021,788.44. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Dale Danilewitz sold 1,857 shares of the stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $74.69, for a total value of $138,699.33. The disclosure for this sale can be found here. Over the last three months, insiders sold 203,823 shares of company stock valued at $17,145,148. Company insiders own 27.40% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of ABC. Sun Life Financial INC increased its position in shares of AmerisourceBergen by 15,000.0% during the second quarter. Sun Life Financial INC now owns 1,208 shares of the company’s stock valued at $114,000 after acquiring an additional 1,200 shares during the last quarter. D.A. Davidson & CO. increased its position in shares of AmerisourceBergen by 29.0% during the second quarter. D.A. Davidson & CO. now owns 1,668 shares of the company’s stock valued at $157,000 after acquiring an additional 375 shares during the last quarter. Intl Fcstone Inc. purchased a new stake in shares of AmerisourceBergen during the second quarter valued at approximately $201,000. Zeke Capital Advisors LLC purchased a new stake in shares of AmerisourceBergen during the third quarter valued at approximately $210,000. Finally, Roberts Glore & Co. Inc. IL purchased a new stake in shares of AmerisourceBergen during the third quarter valued at approximately $219,000. 67.83% of the stock is owned by institutional investors.
AmerisourceBergen Company Profile
AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers.
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