AmerisourceBergen (ABC) Rating Increased to Hold at Zacks Investment Research

AmerisourceBergen (NYSE:ABC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Friday.

According to Zacks, “AmerisourceBergen exited the fiscal fourth quarter on a tepid note. While earnings edged past the consensus mark, revenues lagged the same. However, businesses like World Courier and Xcenda, exceeded expectations in the quarter. AmerisourceBergen also continues to gain from its specialty distribution business. Additionally, AmerisourceBergen’s Global Commercialization Services and Animal Health unit saw a strong fourth quarter. A positive guidance for 2019 buoys optimism. AmerisourceBergen has outperformed the industry in a year’s time. On the flip side, lower PharMEDium and Lash unit sales partially marred segmental operating income in the quarter. Contraction in gross and operating margin raises concern. Earnings in the first quarter of fiscal 2019 are expected to remain down. The company faces headwinds like conversion of branded drugs and lower price generics. Cutthroat competition in the MedTech space adds to the woes.”

A number of other brokerages also recently issued reports on ABC. ValuEngine raised shares of AmerisourceBergen from a “sell” rating to a “hold” rating in a research report on Wednesday, August 15th. Robert W. Baird reaffirmed a “neutral” rating and issued a $94.00 price objective on shares of AmerisourceBergen in a research report on Friday, July 20th. Mizuho reaffirmed a “neutral” rating on shares of AmerisourceBergen in a research report on Wednesday, September 19th. Finally, Royal Bank of Canada set a $90.00 price objective on shares of AmerisourceBergen and gave the stock a “hold” rating in a research report on Wednesday, November 7th. Eight research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $101.07.

NYSE ABC opened at $89.15 on Friday. The company has a current ratio of 0.93, a quick ratio of 0.50 and a debt-to-equity ratio of 1.36. The stock has a market cap of $19.76 billion, a price-to-earnings ratio of 13.74, a price-to-earnings-growth ratio of 1.36 and a beta of 0.97. AmerisourceBergen has a one year low of $76.48 and a one year high of $106.27.

AmerisourceBergen (NYSE:ABC) last posted its earnings results on Tuesday, November 6th. The company reported $1.45 EPS for the quarter, beating analysts’ consensus estimates of $1.44 by $0.01. The business had revenue of $43.30 billion for the quarter, compared to the consensus estimate of $43.27 billion. AmerisourceBergen had a net margin of 0.99% and a return on equity of 45.54%. The company’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same quarter last year, the firm posted $1.33 EPS. On average, equities research analysts expect that AmerisourceBergen will post 6.81 EPS for the current year.

In other AmerisourceBergen news, EVP Kathy H. Gaddes sold 2,652 shares of AmerisourceBergen stock in a transaction that occurred on Thursday, September 20th. The shares were sold at an average price of $89.79, for a total transaction of $238,123.08. Following the completion of the sale, the executive vice president now directly owns 3,891 shares in the company, valued at approximately $349,372.89. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman Steven H. Collis sold 21,350 shares of AmerisourceBergen stock in a transaction that occurred on Thursday, November 1st. The shares were sold at an average price of $90.92, for a total transaction of $1,941,142.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 85,954 shares of company stock worth $7,747,008. 27.30% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Migdal Insurance & Financial Holdings Ltd. lifted its stake in shares of AmerisourceBergen by 140.9% in the 3rd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,142 shares of the company’s stock valued at $105,000 after purchasing an additional 668 shares during the period. First Mercantile Trust Co. acquired a new position in AmerisourceBergen during the second quarter worth $107,000. Financial Gravity Wealth Inc. raised its position in AmerisourceBergen by 93.2% during the third quarter. Financial Gravity Wealth Inc. now owns 1,254 shares of the company’s stock worth $108,000 after acquiring an additional 605 shares during the period. Truvestments Capital LLC acquired a new position in AmerisourceBergen during the third quarter worth $120,000. Finally, Centaurus Financial Inc. acquired a new position in AmerisourceBergen during the second quarter worth $129,000. Institutional investors and hedge funds own 66.23% of the company’s stock.

AmerisourceBergen Company Profile

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers.

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