Embecta Corp. (NASDAQ:EMBC) Given Average Rating of "Strong Sell" by Brokerages

Key Points

• Embecta carries a consensus analyst rating of "Strong Sell", with three sell ratings and two hold ratings among the five analysts covering the stock. The average 1-year price target is $11.00.
• The company recently reported weak quarterly results, missing EPS and revenue estimates, with revenue down 14.4% year over year. Embecta also issued FY 2026 guidance of 1.55 to 1.75 EPS.
• Shares remain under pressure amid multiple securities class-action lawsuits alleging the company misled investors about risks to pen needle revenue. The stock was trading around $3.35, far below its 12-month high of $15.55.

Shares of Embecta Corp. (NASDAQ:EMBC - Get Free Report) have received a consensus rating of "Strong Sell" from the five analysts that are presently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation and two have assigned a hold recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $11.00.

EMBC has been the subject of several research analyst reports. BTIG Research downgraded Embecta from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 5th. Weiss Ratings downgraded Embecta from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. Zacks Research cut shares of Embecta from a "hold" rating to a "strong sell" rating in a research note on Friday, May 8th. Wall Street Zen downgraded shares of Embecta from a "strong-buy" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Bank of America dropped their price objective on shares of Embecta from $11.00 to $3.00 and set an "underperform" rating for the company in a research note on Monday, May 18th.

More Embecta News

Here are the key news stories impacting Embecta this week:

• Positive Sentiment: Heavy news flow and repeated legal notices are keeping EMBC in the spotlight, which can drive trading interest even as the underlying issue is negative for the company. Article Title
• Positive Sentiment: The stock is also benefiting from speculation around class-action activity and deadline reminders, which can increase volume and short-term volatility. Article Title
• Neutral Sentiment: Multiple law firms announced or reiterated class-action filings on behalf of investors who bought EMBC shares between November 25, 2025 and May 4, 2026, with lead-plaintiff deadlines due August 17, 2026. Article Title
• Neutral Sentiment: These lawsuits center on allegations that Embecta misled investors about risks to pen needle revenue, following a Q2 2026 report that triggered a sharp selloff. Article Title
• Negative Sentiment: The core concern for investors is the company’s weak operating update and the allegation that prior guidance overstated the strength of its insulin pen business, which has damaged confidence in management. Article Title

Institutional Trading of Embecta

A number of institutional investors and hedge funds have recently made changes to their positions in EMBC. River Road Asset Management LLC lifted its stake in shares of Embecta by 5.3% in 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 in the last quarter. State Street Corp lifted its position in Embecta by 1.4% during the fourth quarter. State Street Corp now owns 2,360,626 shares of the company's stock valued at $28,044,000 after buying an additional 31,796 shares in the last quarter. Jefferies Financial Group Inc. grew its stake in Embecta by 24.9% during the fourth quarter. Jefferies Financial Group Inc. now owns 2,354,971 shares of the company's stock worth $27,977,000 after buying an additional 470,096 shares during the period. Yacktman Asset Management LP increased its position in shares of Embecta by 3.2% in the fourth quarter. Yacktman Asset Management LP now owns 2,262,915 shares of the company's stock worth $26,883,000 after acquiring an additional 71,209 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Embecta by 13.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,233,869 shares of the company's stock valued at $14,658,000 after acquiring an additional 146,213 shares during the period. 93.83% of the stock is currently owned by institutional investors and hedge funds.

Embecta Trading Up 2.3%

Shares of EMBC traded up $0.07 during trading hours on Tuesday, reaching $3.35. The company had a trading volume of 1,150,408 shares, compared to its average volume of 1,595,868. Embecta has a 12-month low of $2.77 and a 12-month high of $15.55. The firm has a 50 day simple moving average of $3.85 and a 200-day simple moving average of $8.10. The company has a market capitalization of $199.05 million, a price-to-earnings ratio of 1.77 and a beta of 0.83.

Embecta (NASDAQ:EMBC - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.15). Embecta had a negative return on equity of 23.96% and a net margin of 10.73%.The company had revenue of $221.80 million for the quarter, compared to analysts' expectations of $235.67 million. During the same period in the prior year, the firm posted $0.70 EPS. The firm's quarterly revenue was down 14.4% on a year-over-year basis. Embecta has set its FY 2026 guidance at 1.550-1.75 EPS. Sell-side analysts forecast that Embecta will post 1.62 earnings per share for the current year.

Embecta Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Thursday, May 28th were paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Thursday, May 28th. Embecta's dividend payout ratio is currently 2.11%.

About Embecta

Embecta Corp NASDAQ: EMBC is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.

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