Embecta Corp. $EMBC Stock Position Cut by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC significantly reduced its stake in Embecta Corp. by 76.7% during the first quarter, selling 64,090 shares, leaving it with a total of 19,427 shares worth $246,000.
• Embecta Corp. surpassed analysts' earnings expectations with a reported $1.12 EPS and quarterly revenue of $295.50 million, marking an 8.4% increase from the previous year.
• The company announced a quarterly dividend of $0.15 per share, with a total annual yield of 4.1%, reflecting a dividend payout ratio of 41.96%.

Hsbc Holdings PLC cut its stake in shares of Embecta Corp. (NASDAQ:EMBC - Free Report) by 76.7% during the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 19,427 shares of the company's stock after selling 64,090 shares during the period. Hsbc Holdings PLC's holdings in Embecta were worth $246,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of EMBC. American Century Companies Inc. raised its position in shares of Embecta by 16.9% in the 1st quarter. American Century Companies Inc. now owns 3,813,411 shares of the company's stock valued at $48,621,000 after purchasing an additional 551,477 shares in the last quarter. Deerfield Management Company L.P. Series C raised its position in shares of Embecta by 19.8% in the 4th quarter. Deerfield Management Company L.P. Series C now owns 3,270,535 shares of the company's stock valued at $67,537,000 after purchasing an additional 540,192 shares in the last quarter. Northern Trust Corp raised its position in shares of Embecta by 10.5% in the 4th quarter. Northern Trust Corp now owns 700,972 shares of the company's stock valued at $14,475,000 after purchasing an additional 66,367 shares in the last quarter. Jefferies Financial Group Inc. raised its position in shares of Embecta by 60.1% in the 1st quarter. Jefferies Financial Group Inc. now owns 573,000 shares of the company's stock valued at $7,306,000 after purchasing an additional 215,000 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Embecta by 14.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 566,993 shares of the company's stock valued at $11,708,000 after purchasing an additional 73,165 shares in the last quarter. 93.83% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on EMBC shares. Zacks Research raised Embecta from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 26th. Mizuho cut their target price on Embecta from $13.00 to $12.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 16th. BTIG Research set a $25.00 target price on Embecta and gave the company a "buy" rating in a research report on Friday, May 23rd. Finally, Wall Street Zen upgraded Embecta from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 16th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Embecta has an average rating of "Moderate Buy" and a consensus price target of $19.00.

Embecta Trading Up 3.2%

EMBC traded up $0.47 during trading on Friday, reaching $14.96. 618,453 shares of the company were exchanged, compared to its average volume of 631,380. The stock has a market cap of $875.01 million, a P/E ratio of 10.46, a PEG ratio of 0.83 and a beta of 1.12. The firm has a 50 day moving average of $11.89 and a 200 day moving average of $11.87. Embecta Corp. has a 52 week low of $9.20 and a 52 week high of $21.48.

Embecta (NASDAQ:EMBC - Get Free Report) last issued its quarterly earnings data on Friday, August 8th. The company reported $1.12 EPS for the quarter, topping analysts' consensus estimates of $0.77 by $0.35. The firm had revenue of $295.50 million during the quarter, compared to the consensus estimate 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 was up 8.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.74 EPS. Embecta has set its FY 2025 guidance at 2.900-2.950 EPS. As a group, analysts forecast that Embecta Corp. will post 2.85 earnings per share for the current fiscal year.

Embecta Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend is Friday, August 29th. Embecta's payout ratio is 41.96%.

Embecta 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.