Embecta Corp. (NASDAQ:EMBC) Stock Has Consensus Price Target of $11.00

Key Points

• Analysts have a consensus “Reduce” rating on Embecta, with two sell ratings and three holds. The average 12-month price target is $11.00 versus the stock’s reported $6.18 price.
• Embecta exceeded quarterly expectations, reporting $0.56 EPS versus the $0.27 consensus and revenue of $271.7 million versus $254.5 million expected. However, revenue declined 8.1% year over year and return on equity remained negative.
• Insiders bought 70,000 shares during the latest quarter, while institutional investors own a substantial 93.83% of the company. Embecta also pays a $0.01 quarterly dividend, yielding approximately 0.6%.

Embecta Corp. (NASDAQ:EMBC - Get Free Report) has been given a consensus recommendation of "Reduce" by the five ratings firms that are currently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation and three have assigned a hold recommendation to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $11.00.

Several equities analysts recently issued reports on EMBC shares. Weiss Ratings upgraded Embecta from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, October 9th. Zacks Research upgraded shares of Embecta from a "strong sell" rating to a "hold" rating in a research note on Friday, July 17th.

Embecta Stock Down 0.3%

NASDAQ:EMBC opened at $6.18 on Thursday. The company has a market cap of $350.16 million, a PE ratio of 4.18 and a beta of 0.84. The business's 50 day moving average is $5.36 and its two-hundred day moving average is $5.05. Embecta has a 52 week low of $2.77 and a 52 week high of $14.91.

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

Embecta Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Thursday, August 27th were issued a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Thursday, August 27th. Embecta's dividend payout ratio is 2.70%.

Insider Buying and Selling at Embecta

In other Embecta news, CFO Jacob Elguicze purchased 20,000 shares of Embecta stock in a transaction dated Wednesday, August 12th. The shares were bought at an average cost of $4.67 per share, for a total transaction of $93,400.00. Following the transaction, the chief financial officer owned 309,139 shares in the company, valued at $1,443,679.13. This represents a 6.92% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Milton Mayo Morris sold 6,293 shares of Embecta stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $5.88, for a total transaction of $37,002.84. Following the completion of the transaction, the director directly owned 53,828 shares of the company's stock, valued at $316,508.64. This trade represents a 10.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have purchased 70,000 shares of company stock valued at $334,200. Corporate insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Embecta

A number of large investors have recently bought and sold shares of EMBC. Walleye Capital LLC bought a new stake in shares of Embecta in the 1st quarter worth approximately $7,013,000. SG Americas Securities LLC boosted its position in Embecta by 138.4% during the 1st quarter. SG Americas Securities LLC now owns 1,038,948 shares of the company's stock valued at $9,184,000 after purchasing an additional 603,106 shares during the period. Krensavage Asset Management LLC boosted its position in Embecta by 54.4% during the 2nd quarter. Krensavage Asset Management LLC now owns 1,135,340 shares of the company's stock valued at $3,701,000 after purchasing an additional 400,000 shares during the period. River Road Asset Management LLC boosted its position in Embecta by 5.3% during the 4th quarter. River Road Asset Management LLC now owns 3,416,401 shares of the company's stock valued at $40,587,000 after purchasing an additional 171,194 shares during the period. Finally, Hsbc Holdings PLC grew its stake in Embecta by 1,268.6% during the 1st quarter. Hsbc Holdings PLC now owns 212,491 shares of the company's stock worth $1,882,000 after buying an additional 196,965 shares during the last quarter. Institutional investors own 93.83% of the company's stock.

About Embecta

Embecta Corporation NASDAQ: EMBC is a global diabetes-care company that develops, manufactures and markets medical devices used to deliver insulin and monitor blood glucose. Its product portfolio includes insulin pen needles, insulin syringes, safety-engineered injection devices, lancets and related diabetes-management products.

The company serves people with diabetes, health care professionals, hospitals and other health care providers through commercial operations and distribution partners in markets around the world.

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