Embecta Corp. (NASDAQ:EMBC) Given Average Rating of "Reduce" by Analysts

Key Points

• Analysts remain cautious: Embecta has an average “Reduce” rating from five analysts—two sells and three holds—with an average 12-month price target of $11.00.
• Quarterly results beat estimates: The company reported adjusted EPS of $0.56 versus the $0.27 consensus and revenue of $271.7 million, although revenue declined 8.1% year over year.
• Shares remain volatile: Embecta opened at $5.28, compared with a 52-week range of $2.77 to $15.17. Insiders bought 70,000 shares during the last quarter, while institutional investors own 93.83% of the stock.

Shares of Embecta Corp. (NASDAQ:EMBC - Get Free Report) have been assigned an average recommendation of "Reduce" from the five analysts that are covering the company, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation and three have issued a hold recommendation on the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $11.00.

EMBC has been the subject of a number of research analyst reports. Weiss Ratings lowered shares of Embecta from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, August 3rd. Zacks Research raised shares of Embecta from a "strong sell" rating to a "hold" rating in a report on Friday, July 17th.

Insider Activity at Embecta

In other Embecta news, Director Milton Mayo Morris sold 6,293 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $5.88, for a total value of $37,002.84. Following the sale, the director owned 53,828 shares in the company, valued at $316,508.64. The trade was a 10.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jeffrey Mann acquired 20,000 shares of the company's stock in a transaction on Wednesday, August 12th. The shares were bought at an average cost of $4.99 per share, with a total value of $99,800.00. Following the acquisition, the insider directly owned 262,915 shares in the company, valued at approximately $1,311,945.85. The trade was a 8.23% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 70,000 shares of company stock worth $334,200 in the last quarter. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Embecta

Several institutional investors have recently added to or reduced their stakes in the company. One Wealth Advisors LLC bought a new stake in Embecta in the 2nd quarter worth approximately $33,000. Public Employees Retirement System of Ohio purchased a new position in shares of Embecta in the second quarter valued at $133,000. Sei Investments Co. bought a new stake in Embecta in the first quarter worth $138,000. Alpine Global Management LLC bought a new stake in Embecta in the fourth quarter worth $178,000. Finally, Parvin Asset Management LLC raised its stake in Embecta by 11,010.9% during the first quarter. Parvin Asset Management LLC now owns 20,333 shares of the company's stock valued at $180,000 after purchasing an additional 20,150 shares in the last quarter. Hedge funds and other institutional investors own 93.83% of the company's stock.

Embecta Stock Up 1.6%

NASDAQ EMBC opened at $5.28 on Friday. Embecta has a twelve month low of $2.77 and a twelve month high of $15.17. The business has a 50-day moving average price of $4.51 and a 200-day moving average price of $5.50. The firm has a market cap of $298.88 million, a price-to-earnings ratio of 3.56 and a beta of 0.86.

Embecta (NASDAQ:EMBC - Get Free Report) last issued its earnings results on Friday, August 7th. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.29. Embecta had a negative return on equity of 19.25% and a net margin of 8.59%.The company had revenue of $271.70 million for the quarter, compared to the consensus estimate of $254.53 million. During the same quarter last year, the company earned $1.12 EPS. The firm's quarterly revenue was down 8.1% on a year-over-year basis. Embecta has set its FY 2026 guidance at 1.800-1.900 EPS. Research analysts expect that Embecta will post 1.84 EPS for the current fiscal year.

Embecta Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Thursday, August 27th were issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Thursday, August 27th. Embecta's payout ratio is currently 2.70%.

Embecta Company Profile

Embecta Corporation NASDAQ: EMBC is a global diabetes-care company that develops and manufactures products designed to support insulin delivery and diabetes management. Its portfolio includes pen needles, insulin syringes, safety needles, lancets and other injection-related products used by people with diabetes and healthcare professionals.

The company also provides solutions intended to improve the safety, convenience and effectiveness of diabetes care, including connected and digital tools associated with insulin delivery.

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