Embecta (NASDAQ:EMBC) Cut to Hold at Wall Street Zen

Key Points

• Embecta was downgraded by Wall Street Zen from “strong-buy” to “hold,” adding to a wave of cautious analyst sentiment. BTIG Research also cut the stock to neutral, while Mizuho slashed its price target to $5 from $12.
• Recent operating results were weak: the company reported quarterly EPS of $0.27, below the $0.42 estimate, and revenue of $221.8 million, also short of expectations. Revenue fell 14.4% year over year, and the company’s stock has traded far below its 52-week high.
• Market and ownership context: Embecta’s shares were up 1.1% in the session, but the stock remains around $3.64 with a market cap of about $216 million. Institutional investors still hold the vast majority of shares, with 93.83% ownership.

Embecta (NASDAQ:EMBC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Saturday.

A number of other research firms also recently issued reports on EMBC. BTIG Research downgraded shares of Embecta from a "buy" rating to a "neutral" rating in a report on Tuesday. Mizuho cut their price objective on shares of Embecta from $12.00 to $5.00 and set a "neutral" rating for the company in a report on Wednesday. Finally, Weiss Ratings downgraded shares of Embecta from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $15.00.

Embecta Stock Up 1.1%

NASDAQ EMBC opened at $3.64 on Friday. The company has a market capitalization of $215.96 million, a P/E ratio of 1.92 and a beta of 1.09. Embecta has a 12-month low of $3.45 and a 12-month high of $15.55. The firm has a 50-day moving average price of $8.85 and a two-hundred day moving average price of $11.06.

Embecta (NASDAQ:EMBC - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.15). The business had revenue of $221.80 million during the quarter, compared to the consensus estimate of $235.67 million. Embecta had a net margin of 10.73% and a negative return on equity of 23.96%. The business's revenue for the quarter was down 14.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.70 EPS. Embecta has set its FY 2026 guidance at 1.550-1.75 EPS. Equities analysts expect that Embecta will post 1.65 EPS for the current year.

Hedge Funds Weigh In On Embecta

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC raised its position in shares of Embecta by 9.0% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 12,708 shares of the company's stock valued at $148,000 after buying an additional 1,050 shares in the last quarter. Brooklyn Investment Group raised its position in shares of Embecta by 5.9% in the 4th quarter. Brooklyn Investment Group now owns 19,736 shares of the company's stock valued at $234,000 after buying an additional 1,098 shares in the last quarter. The Manufacturers Life Insurance Company raised its position in shares of Embecta by 5.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 21,589 shares of the company's stock valued at $209,000 after buying an additional 1,110 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Embecta by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company's stock valued at $629,000 after buying an additional 1,159 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Embecta by 1.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 150,271 shares of the company's stock valued at $1,785,000 after buying an additional 1,520 shares in the last quarter. 93.83% of the stock is currently owned by institutional investors and hedge funds.

Embecta Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.