Perrigo (NYSE:PRGO) Hits New 12-Month High - Here's Why

Key Points

• Perrigo shares hit a 52-week high of $16.83, up 5.9% on the day, with nearly 1.45 million shares traded.
• Quarterly adjusted earnings of $0.60 per share beat the $0.51 consensus, and revenue slightly topped estimates at $988.6 million; however, revenue fell 5.2% year over year.
• Analyst views remain mixed: the consensus rating is “Reduce” with an $18.50 price target, despite Canaccord raising its target to $19 and assigning a Buy rating. Perrigo also declared a $0.29 quarterly dividend, representing a 6.9% yield.

Perrigo Company plc (NYSE:PRGO - Get Free Report)'s stock price reached a new 52-week high during trading on Monday. The stock traded as high as $16.83 and last traded at $16.83, with a volume of 1,452,848 shares changing hands. The stock had previously closed at $15.85.

Analysts Set New Price Targets

Several brokerages recently commented on PRGO. Canaccord Genuity Group raised their target price on Perrigo from $17.00 to $19.00 and gave the company a "buy" rating in a report on Friday, October 30th. Weiss Ratings restated a "sell (d)" rating on shares of Perrigo in a report on Tuesday, November 3rd. Wall Street Zen downgraded shares of Perrigo from a "buy" rating to a "hold" rating in a research report on Saturday, October 31st. Finally, Zacks Research downgraded shares of Perrigo from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 29th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $18.50.

Perrigo Trading Up 5.9%

The firm has a market cap of $2.33 billion, a P/E ratio of -1.32, a price-to-earnings-growth ratio of 1.70 and a beta of 0.71. The company has a quick ratio of 1.36, a current ratio of 2.35 and a debt-to-equity ratio of 1.35. The business's 50 day moving average is $14.96 and its 200-day moving average is $12.50.

Perrigo (NYSE:PRGO - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.51 by $0.09. Perrigo had a positive return on equity of 12.39% and a negative net margin of 43.27%. The company had revenue of $988.60 million during the quarter, compared to analyst estimates of $984.80 million. During the same quarter last year, the firm earned $0.80 EPS. The business's revenue was down 5.2% on a year-over-year basis. As a group, analysts forecast that Perrigo Company plc will post 2.33 earnings per share for the current fiscal year.

Perrigo Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, November 27th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 6.9%. The ex-dividend date of this dividend is Friday, November 27th. Perrigo's dividend payout ratio is currently -9.09%.

Hedge Funds Weigh In On Perrigo

A number of institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE lifted its holdings in Perrigo by 25.5% in the 1st quarter. Bank of America Corp DE now owns 1,568,598 shares of the company's stock worth $16,847,000 after buying an additional 318,248 shares during the period. Gamco Investors INC. ET AL lifted its stake in Perrigo by 29.7% in the first quarter. Gamco Investors INC. ET AL now owns 1,397,866 shares of the company's stock worth $15,013,000 after acquiring an additional 320,081 shares during the period. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in Perrigo in the second quarter valued at $4,066,000. Empowered Funds LLC boosted its holdings in Perrigo by 41.6% in the first quarter. Empowered Funds LLC now owns 511,872 shares of the company's stock valued at $5,498,000 after acquiring an additional 150,438 shares in the last quarter. Finally, Gabelli Funds LLC increased its position in Perrigo by 29.8% during the 1st quarter. Gabelli Funds LLC now owns 893,359 shares of the company's stock valued at $9,595,000 after purchasing an additional 205,311 shares during the period. Hedge funds and other institutional investors own 95.91% of the company's stock.

Perrigo Company Profile

Perrigo is a global consumer healthcare company that develops, manufactures and markets over-the-counter medicines and other self-care products. Its offerings include treatments for allergies, coughs and colds, pain and digestive health, as well as skin care, oral care and infant nutrition products.

The company supplies both its own consumer brands and store-brand products, which retailers sell under their own labels. Perrigo serves customers primarily in North America and Europe through retail and other healthcare channels.

Perrigo traces its roots to a general store opened in Allegan, Michigan, in 1887, where it began supplying medicines.

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