Embecta (NASDAQ:EMBC) Releases FY 2025 Earnings Guidance

Key Points

• Embecta updated its FY 2025 earnings guidance, projecting earnings per share of 2.900-2.950, surpassing the consensus estimate of 2.820.
• The company also announced a quarterly dividend of $0.15 per share, which will yield approximately 5.8% annually.
• Institutional investors have increased their stakes, with notable firms like Royal Bank of Canada boosting their holdings by 38.3% in the first quarter.

Embecta (NASDAQ:EMBC - Get Free Report) updated its FY 2025 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 2.900-2.950 for the period, compared to the consensus estimate of 2.820. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Wall Street Analysts Forecast Growth

A number of analysts have commented on EMBC shares. BTIG Research set a $25.00 target price on shares of Embecta and gave the company a "buy" rating in a report on Friday, May 23rd. Wall Street Zen upgraded shares of Embecta from a "hold" rating to a "buy" rating in a report on Thursday, May 22nd. Finally, Mizuho reduced their price target on shares of Embecta from $13.00 to $12.00 and set a "neutral" rating for the company in a research report on Wednesday, July 16th.

Embecta Trading Up 2.4%

NASDAQ:EMBC traded up $0.31 during mid-day trading on Tuesday, reaching $13.04. 384,961 shares of the stock were exchanged, compared to its average volume of 600,904. Embecta has a 1-year low of $9.20 and a 1-year high of $21.48. The firm has a market capitalization of $761.77 million, a PE ratio of 9.12, a PEG ratio of 0.79 and a beta of 1.08. The business has a fifty day moving average price of $10.29 and a 200 day moving average price of $12.25.

Embecta (NASDAQ:EMBC - Get Free Report) last posted its quarterly earnings results on Friday, August 8th. The company reported $1.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.77 by $0.35. The business had revenue of $295.50 million for the quarter, compared to analysts' expectations of $278.15 million. Embecta had a negative return on equity of 23.40% and a net margin of 7.58%. The firm'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 earned $0.74 EPS. On average, sell-side analysts forecast that Embecta will post 2.85 earnings per share for the current year.

Embecta Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend is Friday, August 29th. Embecta's dividend payout ratio (DPR) is 41.96%.

Insider Transactions at Embecta

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

Institutional Investors Weigh In On Embecta

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in Embecta by 38.3% in the 1st quarter. Royal Bank of Canada now owns 18,201 shares of the company's stock valued at $232,000 after purchasing an additional 5,036 shares in the last quarter. Creative Planning boosted its position in Embecta by 40.0% in the 2nd quarter. Creative Planning now owns 35,791 shares of the company's stock valued at $347,000 after buying an additional 10,229 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Embecta by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company's stock valued at $629,000 after purchasing an additional 1,159 shares during the period. Jane Street Group LLC increased its stake in shares of 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 acquiring an additional 91,729 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Embecta by 4.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,173 shares of the company's stock worth $2,195,000 after purchasing an additional 7,894 shares during the period. Institutional investors and hedge funds 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.