Embecta (NASDAQ:EMBC) Reaches New 12-Month Low After Earnings Miss

Key Points

• Embecta plunged to a new 52-week low of $3.89 after missing Q results — EPS $0.27 vs. $0.42 expected and revenue $221.8M vs. $235.7M, with revenue down 14.4% year-over-year and FY2026 guidance set at 1.55–1.75 EPS.
• The company announced a quarterly dividend of $0.01 (annualized $0.04, ~1.0% yield) with a dividend payout ratio of 25.32%.
• Analyst sentiment is mixed with a MarketBeat consensus rating of "Hold" (consensus price target $18.50) even as several firms trimmed targets or ratings; shares are down ~57.8%, market cap about $231M, and institutional ownership is ~93.8%.

Embecta Corp. (NASDAQ:EMBC - Get Free Report)'s stock price reached a new 52-week low on Tuesday following a weaker than expected earnings announcement. The company traded as low as $3.89 and last traded at $3.90, with a volume of 16024021 shares. The stock had previously closed at $9.25.

The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.15). Embecta had a negative return on equity of 26.66% and a net margin of 12.92%.The company had revenue of $221.80 million during the quarter, compared to analyst estimates of $235.67 million. During the same period in the prior year, the business earned $0.70 earnings per share. Embecta'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.

Embecta Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Thursday, May 28th will be given a $0.01 dividend. The ex-dividend date of this dividend is Thursday, May 28th. This represents a $0.04 annualized dividend and a yield of 1.0%. Embecta's dividend payout ratio (DPR) is currently 25.32%.

Wall Street Analyst Weigh In

EMBC has been the topic of several analyst reports. Mizuho dropped their target price on Embecta from $14.00 to $12.00 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Wall Street Zen raised Embecta from a "buy" rating to a "strong-buy" rating in a research report on Saturday, March 7th. Weiss Ratings reissued a "hold (c-)" rating on shares of Embecta in a research note on Wednesday, January 21st. Finally, BTIG Research cut Embecta from a "buy" rating to a "neutral" rating in a research note on Tuesday. Four investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $18.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of EMBC. Royal Bank of Canada grew its stake in shares of Embecta by 38.3% in the first quarter. Royal Bank of Canada now owns 18,201 shares of the company's stock worth $232,000 after purchasing an additional 5,036 shares in the last quarter. AQR Capital Management LLC boosted its stake in Embecta by 3.7% during the first quarter. AQR Capital Management LLC now owns 225,641 shares of the company's stock valued at $2,738,000 after buying an additional 8,109 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Embecta by 2.4% during the first 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. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Embecta by 4.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,173 shares of the company's stock valued at $2,195,000 after buying an additional 7,894 shares in the last quarter. Finally, Jane Street Group LLC boosted its stake in Embecta by 224.0% during the first quarter. Jane Street Group LLC now owns 132,688 shares of the company's stock valued at $1,692,000 after buying an additional 91,729 shares in the last quarter. Institutional investors own 93.83% of the company's stock.

Embecta Stock Down 57.8%

The company has a 50 day moving average of $9.12 and a two-hundred day moving average of $11.20. The firm has a market cap of $230.96 million, a P/E ratio of 3.05 and a beta of 1.09.

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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