Embecta (NASDAQ:EMBC) Stock Rating Upgraded by Wall Street Zen

Key Points

• Embecta has received a rating upgrade from Wall Street Zen, moving from a "buy" to a "strong-buy" rating, a significant shift reflecting analysts' confidence in the company's prospects.
• Despite a recent downgrade from Mizuho, BTIG Research has set a price target of $25.00 for Embecta shares, indicating optimism amid mixed analyst opinions.
• In its latest earnings report, Embecta reported an EPS of $1.12, exceeding expectations, with revenues of $295.50 million, marking an 8.4% increase year-over-year.

Wall Street Zen upgraded shares of Embecta (NASDAQ:EMBC - Free Report) from a buy rating to a strong-buy rating in a research report report published on Saturday morning.

Several other equities research analysts also recently weighed in on the stock. BTIG Research set a $25.00 target price on shares of Embecta and gave the company a "buy" rating in a research note on Friday, May 23rd. Mizuho reduced their target price on shares of Embecta from $13.00 to $12.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 16th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $19.00.

Embecta Price Performance

Shares of EMBC traded up $0.25 during midday trading on Friday, hitting $13.89. The stock had a trading volume of 434,580 shares, compared to its average volume of 733,446. Embecta has a 1 year low of $9.20 and a 1 year high of $21.48. The firm has a market cap of $812.43 million, a PE ratio of 9.71, a price-to-earnings-growth ratio of 0.76 and a beta of 1.08. The stock's 50 day moving average is $10.78 and its 200 day moving average is $12.10.

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

Embecta Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 4.3%. The ex-dividend date is Friday, August 29th. Embecta's dividend payout ratio is presently 41.96%.

Insider Transactions at Embecta

In other Embecta news, Director David F. Melcher bought 10,000 shares of the company's stock in a transaction on Friday, May 23rd. The shares were bought at an average cost of $10.60 per share, for a total transaction of $106,000.00. Following the acquisition, the director directly owned 86,681 shares in the company, valued at approximately $918,818.60. The trade was a 13.04% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.42% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Public Sector Pension Investment Board grew its holdings in Embecta by 8.1% during the 2nd quarter. Public Sector Pension Investment Board now owns 199,227 shares of the company's stock worth $1,931,000 after acquiring an additional 14,908 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in Embecta by 542.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,371 shares of the company's stock worth $71,000 after acquiring an additional 6,224 shares in the last quarter. Man Group plc grew its holdings in Embecta by 25.6% during the 2nd quarter. Man Group plc now owns 36,002 shares of the company's stock worth $349,000 after acquiring an additional 7,339 shares in the last quarter. Humankind Investments LLC bought a new position in Embecta during the 2nd quarter worth about $111,000. Finally, Brevan Howard Capital Management LP grew its holdings in Embecta by 370.0% during the 2nd quarter. Brevan Howard Capital Management LP now owns 50,214 shares of the company's stock worth $487,000 after acquiring an additional 39,530 shares in the last quarter. 93.83% of the stock is currently owned by institutional investors.

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.