Embecta (NASDAQ:EMBC) Updates 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) issued an update on its FY 2025 earnings guidance on Friday morning. The company provided earnings per share guidance of 2.900-2.950 for the period, compared to the consensus earnings per share 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.

Embecta Trading Up 5.0%

NASDAQ:EMBC opened at $10.36 on Friday. The firm has a market cap of $605.47 million, a price-to-earnings ratio of 11.51, a price-to-earnings-growth ratio of 0.63 and a beta of 1.08. The company's 50-day moving average is $10.21 and its two-hundred day moving average is $12.42. Embecta has a 12-month low of $9.20 and a 12-month high of $21.48.

Embecta (NASDAQ:EMBC - Get Free Report) last posted its quarterly earnings data on Friday, May 9th. The company reported $0.70 EPS for the quarter, beating analysts' consensus estimates of $0.66 by $0.04. Embecta had a net margin of 4.89% and a negative return on equity of 19.67%. The company had revenue of $259.00 million during the quarter, compared to the consensus estimate of $261.77 million. During the same quarter in the prior year, the company posted $0.67 EPS. The company's quarterly revenue was down 9.8% compared to the same quarter last year. On average, equities research analysts forecast that Embecta will post 2.85 earnings per share for the current fiscal year.

Embecta Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 5.8%. Embecta's dividend payout ratio is currently 66.67%.

Analysts Set New Price Targets

A number of research firms have recently commented on EMBC. Wall Street Zen raised shares of Embecta from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd. BTIG Research set a $25.00 price objective on shares of Embecta and gave the company a "buy" rating in a research note on Friday, May 23rd. Finally, Mizuho dropped their target price 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.

Insiders Place Their Bets

In other news, Director David F. Melcher acquired 10,000 shares of the stock in a transaction on Friday, May 23rd. The stock was bought at an average price of $10.60 per share, with a total value of $106,000.00. Following the completion of the transaction, the director directly owned 86,681 shares of the company's stock, valued at $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 the SEC website. 0.42% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Embecta

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada boosted its stake in shares of Embecta by 38.3% during the 1st quarter. Royal Bank of Canada now owns 18,201 shares of the company's stock valued at $232,000 after buying an additional 5,036 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Embecta by 2.4% during the 1st 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 during the last quarter. Jane Street Group LLC boosted its stake in shares of Embecta by 224.0% during the 1st 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 during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Embecta by 4.8% during 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 valued at $2,195,000 after buying an additional 7,894 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of Embecta by 3.7% during the 1st 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 during the last quarter. 93.83% of the stock is owned by hedge funds and other institutional investors.

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.

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