Embecta (NASDAQ:EMBC) Lowered to Hold Rating by Zacks Research

Key Points

• Embecta has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, indicating a shift in analyst sentiment towards the stock.
• The company's stock price decreased by 1.6% to $13.60, and its consensus price target stands at $19.00.
• Embecta reported better-than-expected quarterly earnings, posting $1.12 earnings per share compared to the analyst estimate of $0.77, and a revenue of $295.50 million, which exceeds expectations.

Embecta (NASDAQ:EMBC - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently weighed in on EMBC. Wall Street Zen raised Embecta from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 16th. BTIG Research reaffirmed a "buy" rating and set a $25.00 price objective on shares of Embecta in a research note on Friday, September 5th. Mizuho lowered their price target on Embecta from $13.00 to $12.00 and set a "neutral" rating on the stock in a report on Wednesday, July 16th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Embecta in a report on Wednesday. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $19.00.

Embecta Trading Down 1.6%

Shares of EMBC stock traded down $0.22 during mid-day trading on Tuesday, reaching $13.60. The stock had a trading volume of 25,803 shares, compared to its average volume of 584,106. The firm has a market cap of $795.63 million, a price-to-earnings ratio of 9.51, a PEG ratio of 0.76 and a beta of 1.10. Embecta has a 1-year low of $9.20 and a 1-year high of $21.48. The business's fifty day moving average is $13.77 and its 200-day moving average is $12.06.

Embecta (NASDAQ:EMBC - Get Free Report) last issued its quarterly earnings results on Friday, August 8th. The company reported $1.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.35. The company had revenue of $295.50 million for the quarter, compared to the consensus estimate of $278.15 million. Embecta had a negative return on equity of 23.40% and a net margin of 7.58%.Embecta's revenue for the quarter was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.74 earnings per share. Embecta has set its FY 2025 guidance at 2.900-2.950 EPS. On average, analysts forecast that Embecta will post 2.85 earnings per share for the current year.

Institutional Investors Weigh In On Embecta

Hedge funds have recently made changes to their positions in the business. American Century Companies Inc. lifted its position in Embecta by 36.3% in the second quarter. American Century Companies Inc. now owns 5,195,948 shares of the company's stock worth $50,349,000 after purchasing an additional 1,382,537 shares during the period. River Road Asset Management LLC lifted its position in Embecta by 0.4% in the second quarter. River Road Asset Management LLC now owns 3,240,243 shares of the company's stock worth $32,921,000 after purchasing an additional 12,352 shares during the period. Yacktman Asset Management LP grew its position in Embecta by 0.7% in the second quarter. Yacktman Asset Management LP now owns 2,373,386 shares of the company's stock worth $22,998,000 after buying an additional 16,069 shares during the last quarter. William Blair Investment Management LLC grew its position in Embecta by 0.7% in the second quarter. William Blair Investment Management LLC now owns 1,992,604 shares of the company's stock worth $19,308,000 after buying an additional 14,232 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Embecta by 3.1% in the second quarter. Geode Capital Management LLC now owns 1,511,996 shares of the company's stock worth $14,653,000 after buying an additional 44,822 shares during the last quarter. Institutional investors own 93.83% of the company's stock.

About Embecta

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes.

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