Embecta (NASDAQ:EMBC) Shares Gap Up After Strong Earnings

Key Points

• Embecta Corp. reported an earnings per share (EPS) of $1.12, significantly beating analysts' estimates of $0.77, leading to a notable increase in stock price from $10.36 to $12.90.
• The company declared a quarterly dividend of $0.15 per share, yielding 5.0% annually, with a payout ratio of 66.67%.
• Institutional investors have shown increased interest, with 93.83% of shares now owned by institutions and hedge funds, reflecting significant buying activity in recent quarters.

Embecta Corp. (NASDAQ:EMBC - Get Free Report) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $10.36, but opened at $12.90. Embecta shares last traded at $12.06, with a volume of 301,357 shares changing hands.

The company reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.35. The firm had revenue of $295.50 million for the quarter, compared to analysts' expectations of $278.15 million. Embecta had a net margin of 7.58% and a negative return on equity of 23.40%. The firm's quarterly revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.74 earnings per share.

Embecta Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date is Friday, August 29th. Embecta's dividend payout ratio is currently 41.96%.

Analyst Upgrades and Downgrades

EMBC has been the subject of a number of recent analyst reports. BTIG Research set a $25.00 target price on shares of Embecta and gave the company a "buy" rating in a research report on Friday, May 23rd. Wall Street Zen upgraded Embecta from a "hold" rating to a "buy" rating in a report on Thursday, May 22nd. Finally, Mizuho dropped their price objective on Embecta from $13.00 to $12.00 and set a "neutral" rating on the stock in a report on Wednesday, July 16th.

Insider Activity

In related news, Director David F. Melcher acquired 10,000 shares of the firm's stock in a transaction on Friday, May 23rd. The shares were purchased at an average price of $10.60 per share, with a total value of $106,000.00. Following the acquisition, the director directly owned 86,681 shares in the company, valued at $918,818.60. The trade was a 13.04% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. 0.42% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Embecta

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Sterling Capital Management LLC grew its stake in Embecta by 796.3% during the fourth quarter. Sterling Capital Management LLC now owns 1,685 shares of the company's stock worth $35,000 after purchasing an additional 1,497 shares during the period. Banque Transatlantique SA lifted its holdings in Embecta by 879.1% during the first quarter. Banque Transatlantique SA now owns 3,701 shares of the company's stock worth $44,000 after acquiring an additional 3,323 shares during the period. Brooklyn Investment Group lifted its position in shares of Embecta by 1,164.1% during the 1st quarter. Brooklyn Investment Group now owns 3,590 shares of the company's stock valued at $46,000 after buying an additional 3,306 shares during the last quarter. Wealthquest Corp purchased a new position in shares of Embecta during the 1st quarter valued at $48,000. Finally, Picton Mahoney Asset Management purchased a new position in shares of Embecta in the first quarter valued at $50,000. Institutional investors own 93.83% of the company's stock.

Embecta Stock Up 4.0%

The company has a 50-day moving average price of $10.29 and a two-hundred day moving average price of $12.25. The company has a market capitalization of $773.75 million, a PE ratio of 9.25, a PEG ratio of 0.79 and a beta of 1.08.

Embecta Company Profile

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.