Emergent Biosolutions Inc. (NYSE:EBS) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts are cautious on EBS: Emergent BioSolutions has a consensus rating of “Hold” from five covering brokerages, with an average 12-month price target of $12.00. The rating mix includes one sell, one hold, and three buy ratings.
• The stock fell sharply in trading: Shares dropped 9.4% to $8.27 on Tuesday, though volume was slightly above average. The stock is trading below its 200-day moving average of $10.10 and remains well below its 1-year high of $14.06.
• Recent earnings beat estimates: Emergent BioSolutions reported $0.21 EPS versus expectations for a loss, and revenue of $156.1 million, both better than analyst forecasts. The company also saw notable insider selling and continued institutional buying.

Shares of Emergent Biosolutions Inc. (NYSE:EBS - Get Free Report) have earned an average recommendation of "Hold" from the five brokerages that are covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $12.00.

A number of research firms have issued reports on EBS. UBS Group reiterated a "buy" rating on shares of Emergent Biosolutions in a report on Tuesday. Wall Street Zen cut Emergent Biosolutions from a "buy" rating to a "hold" rating in a research report on Sunday, March 8th. Benchmark reissued a "buy" rating on shares of Emergent Biosolutions in a research report on Tuesday. Weiss Ratings cut Emergent Biosolutions from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, May 11th. Finally, HC Wainwright cut their price target on shares of Emergent Biosolutions from $15.00 to $12.00 and set a "buy" rating on the stock in a research report on Monday, March 9th.

Emergent Biosolutions Trading Down 9.4%

Shares of NYSE:EBS traded down $0.86 during trading on Tuesday, hitting $8.27. 850,701 shares of the company's stock were exchanged, compared to its average volume of 751,814. The company has a current ratio of 4.29, a quick ratio of 2.08 and a debt-to-equity ratio of 1.10. The firm has a market cap of $426.47 million, a P/E ratio of -29.68 and a beta of 2.33. The firm has a 50-day moving average price of $8.40 and a two-hundred day moving average price of $10.10. Emergent Biosolutions has a 1-year low of $5.61 and a 1-year high of $14.06.

Emergent Biosolutions (NYSE:EBS - Get Free Report) last issued its earnings results on Thursday, April 30th. The biopharmaceutical company reported $0.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.25) by $0.46. Emergent Biosolutions had a positive return on equity of 10.76% and a negative net margin of 1.27%.The firm had revenue of $156.10 million for the quarter, compared to analysts' expectations of $145.00 million.

Insider Activity

In other Emergent Biosolutions news, Director Keith Katkin sold 15,481 shares of the company's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $8.28, for a total value of $128,182.68. Following the transaction, the director directly owned 96,294 shares in the company, valued at $797,314.32. The trade was a 13.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sujata Tyagi Dayal sold 13,761 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $8.40, for a total transaction of $115,592.40. Following the completion of the transaction, the director directly owned 100,563 shares in the company, valued at $844,729.20. The trade was a 12.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 61,925 shares of company stock worth $518,312. 6.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in EBS. Dimensional Fund Advisors LP increased its position in shares of Emergent Biosolutions by 22.4% during the first quarter. Dimensional Fund Advisors LP now owns 2,757,158 shares of the biopharmaceutical company's stock worth $22,884,000 after buying an additional 504,553 shares during the period. State Street Corp boosted its position in Emergent Biosolutions by 10.2% during the fourth quarter. State Street Corp now owns 2,696,375 shares of the biopharmaceutical company's stock valued at $33,327,000 after acquiring an additional 250,616 shares during the last quarter. Millennium Management LLC grew its holdings in Emergent Biosolutions by 68.9% during the 1st quarter. Millennium Management LLC now owns 2,502,488 shares of the biopharmaceutical company's stock worth $12,162,000 after acquiring an additional 1,020,582 shares during the period. American Century Companies Inc. raised its position in shares of Emergent Biosolutions by 3.9% in the 3rd quarter. American Century Companies Inc. now owns 2,382,378 shares of the biopharmaceutical company's stock worth $21,013,000 after acquiring an additional 90,216 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Emergent Biosolutions by 17.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,618,903 shares of the biopharmaceutical company's stock worth $20,010,000 after acquiring an additional 237,153 shares in the last quarter. 78.40% of the stock is owned by institutional investors.

About Emergent Biosolutions

Emergent BioSolutions is a global specialty biopharmaceutical company focused on developing, manufacturing and commercializing medical countermeasures and specialty products that address public health threats. The company's portfolio includes vaccines, antibody therapies and critical care products designed to protect against biological, chemical and emerging infectious disease threats. Emergent has longstanding partnerships with government agencies, including the U.S. Department of Defense and the Biomedical Advanced Research and Development Authority (BARDA), to support national preparedness programs.

Key commercial products in Emergent's lineup include BioThrax (anthrax vaccine adsorbed), ACAM2000 (smallpox vaccine) and Vaxchora (cholera vaccine), alongside therapeutic treatments such as Anthrasil (anthrax immune globulin) and the naloxone-based nasal spray Narcan for opioid overdose reversal.

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