JPMorgan Chase & Co. Begins Coverage on Emergent Biosolutions (NYSE:EBS)

Key Points

• JPMorgan initiated coverage of Emergent BioSolutions with an “underweight” rating, adding to a mixed analyst outlook. MarketBeat reports an average rating of “Hold” and a consensus price target of $10.00.
• EBS shares rose 2.5% to $4.94, but remain well below their 52-week high of $14.06. The company has a market capitalization of approximately $253 million and elevated leverage, with a debt-to-equity ratio of 1.70.
• Emergent’s latest quarterly results exceeded expectations, with revenue of $234.3 million versus the $177.5 million consensus estimate and adjusted earnings of $0.60 per share versus an expected loss. Analysts nevertheless forecast a full-year loss of $4.63 per share.

Research analysts at JPMorgan Chase & Co. started coverage on shares of Emergent Biosolutions (NYSE:EBS - Get Free Report) in a research report issued on Friday. The brokerage set an "underweight" rating on the biopharmaceutical company's stock.

Several other equities research analysts have also weighed in on EBS. HC Wainwright dropped their price target on Emergent Biosolutions from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Monday, August 10th. Zacks Research upgraded Emergent Biosolutions to a "hold" rating in a report on Tuesday, August 11th. UBS Group reissued a "buy" rating on shares of Emergent Biosolutions in a research report on Tuesday, June 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of Emergent Biosolutions in a report on Friday, August 7th. Finally, Benchmark reaffirmed a "buy" rating on shares of Emergent Biosolutions in a research report on Tuesday, June 2nd. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Emergent Biosolutions currently has an average rating of "Hold" and a consensus target price of $10.00.

Emergent Biosolutions Trading Up 2.5%

EBS stock traded up $0.12 during trading on Friday, reaching $4.94. The company had a trading volume of 138,060 shares, compared to its average volume of 924,141. Emergent Biosolutions has a 52 week low of $4.36 and a 52 week high of $14.06. The company has a market cap of $253.27 million, a P/E ratio of -1.39 and a beta of 2.35. The business has a 50 day moving average of $7.17 and a 200 day moving average of $8.30. The company has a debt-to-equity ratio of 1.70, a current ratio of 5.42 and a quick ratio of 2.95.

Emergent Biosolutions (NYSE:EBS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The biopharmaceutical company reported $0.60 earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.68. Emergent Biosolutions had a positive return on equity of 16.35% and a negative net margin of 22.95%.The business had revenue of $234.30 million for the quarter, compared to analysts' expectations of $177.50 million. As a group, sell-side analysts forecast that Emergent Biosolutions will post -4.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Paul Anthony Williams sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $8.40, for a total transaction of $25,200.00. Following the completion of the transaction, the senior vice president owned 159,098 shares of the company's stock, valued at $1,336,423.20. This trade represents a 1.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 6.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Emergent Biosolutions

Several large investors have recently modified their holdings of EBS. Millennium Management LLC grew its position 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 valued at $12,162,000 after purchasing an additional 1,020,582 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Emergent Biosolutions by 12.5% in the first quarter. Goldman Sachs Group Inc. now owns 1,090,655 shares of the biopharmaceutical company's stock worth $5,301,000 after buying an additional 121,583 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Emergent Biosolutions in the second quarter worth approximately $31,000. Rhumbline Advisers grew its holdings in shares of Emergent Biosolutions by 862.4% during the second quarter. Rhumbline Advisers now owns 84,025 shares of the biopharmaceutical company's stock valued at $536,000 after buying an additional 75,294 shares during the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Emergent Biosolutions during the second quarter valued at approximately $352,000. Hedge funds and other institutional investors own 78.40% of the company's stock.

Emergent Biosolutions Company Profile

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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