Wall Street Zen Downgrades Organogenesis (NASDAQ:ORGO) to Sell

Key Points

• Wall Street Zen downgraded Organogenesis from “buy” to “sell,” adding to a more cautious analyst view. The stock’s overall rating now stands at Hold with an average price target of $8.50.
• ORGO fell 6.3% after the downgrade and was trading at $2.37, near its 52-week low of $2.04. The company also has a market cap of about $305 million and trades well below its 200-day moving average.
• Recent earnings were weak, with Organogenesis reporting a loss of $0.37 per share versus expectations of a $0.29 loss and revenue of $37.23 million, below the $43.26 million forecast. Despite this, the company still has strong liquidity and a very low debt-to-equity ratio.

Organogenesis (NASDAQ:ORGO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other equities analysts have also recently weighed in on the company. Weiss Ratings upgraded Organogenesis from a "sell (d+)" rating to a "hold (c)" rating in a report on Friday, February 27th. BTIG Research cut Organogenesis from a "buy" rating to a "neutral" rating in a research note on Friday. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Organogenesis presently has an average rating of "Hold" and an average price target of $8.50.

Organogenesis Stock Down 6.3%

NASDAQ ORGO opened at $2.37 on Friday. The stock has a market cap of $304.97 million, a PE ratio of -12.47 and a beta of 1.31. Organogenesis has a fifty-two week low of $2.04 and a fifty-two week high of $7.08. The business has a 50 day moving average price of $2.56 and a two-hundred day moving average price of $3.89. The company has a quick ratio of 3.32, a current ratio of 3.62 and a debt-to-equity ratio of 0.04.

Organogenesis (NASDAQ:ORGO - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.37) earnings per share for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.08). The company had revenue of $37.23 million during the quarter, compared to analysts' expectations of $43.26 million. Organogenesis had a positive return on equity of 9.47% and a negative net margin of 0.84%.

Insider Activity at Organogenesis

In other Organogenesis news, Director Michael Joseph Driscoll bought 10,000 shares of Organogenesis stock in a transaction dated Monday, March 9th. The stock was bought at an average cost of $2.67 per share, for a total transaction of $26,700.00. Following the purchase, the director owned 225,707 shares in the company, valued at $602,637.69. This represents a 4.64% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 33.00% of the company's stock.

Hedge Funds Weigh In On Organogenesis

Several institutional investors and hedge funds have recently made changes to their positions in ORGO. First Light Asset Management LLC purchased a new position in shares of Organogenesis during the 2nd quarter valued at approximately $24,804,000. Norges Bank bought a new position in Organogenesis during the fourth quarter worth $5,686,000. Assenagon Asset Management S.A. lifted its stake in Organogenesis by 14.0% during the fourth quarter. Assenagon Asset Management S.A. now owns 5,535,334 shares of the company's stock worth $28,673,000 after purchasing an additional 680,392 shares during the last quarter. Flax Pond Capital LLC bought a new position in Organogenesis during the fourth quarter worth $2,197,000. Finally, Millennium Management LLC lifted its stake in Organogenesis by 481.2% during the fourth quarter. Millennium Management LLC now owns 483,742 shares of the company's stock worth $2,506,000 after purchasing an additional 400,514 shares during the last quarter. 49.57% of the stock is currently owned by hedge funds and other institutional investors.

Organogenesis Company Profile

Organogenesis Inc operates as a regenerative medicine company focused on the development, manufacturing and commercialization of therapeutic solutions for wound care, surgical repair and sports medicine. The company's product portfolio addresses a range of acute and chronic tissue repair needs, leveraging bioengineered skin substitutes, human placental-derived products and other allografts designed to promote healing and reduce scarring. Organogenesis markets its therapies to hospitals, outpatient clinics, wound care centers and other healthcare providers.

Key offerings include Apligraf, a living skin substitute for treatment of diabetic foot ulcers and venous leg ulcers; Dermagraft, a cryopreserved human fibroblast-derived dermal substitute; Grafix, a placental membrane allograft for complex and chronic wounds; and TheraSkin, a cryopreserved human skin allograft used in surgical and reconstructive procedures.

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