Zacks Investment Research Downgrades Emergent Biosolutions (EBS) to Hold

Emergent Biosolutions (NYSE:EBS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday, Zacks.com reports.

According to Zacks, “Emergent BioSolutions' recent acquisitions of PaxVax and Adapt Pharma have expanded the company’s presence in the public health threats market. Its anthrax vaccine, NuThrax’s regulatory application is under review, with a decision expected in the first half of 2019. We are positive on Emergent’s spin-off of its biosciences business into a separate publicly traded company as it resulted in reduction of the cost structure. Notably, the company derives majority of its revenues from BioThrax sales. Hence, its sole dependence on BioThrax for revenues is a headwind. Moreover, Emergent depends on certain single-source suppliers for key materials and services, which are necessary for manufacturing BioThrax. This, in turn, raises a concern. Shares of the company have underperformed the industry so far this year. Estimates have narrowed ahead of Q1 earnings. Emergent has a mixed record of earnings surprises in the recent quarters.”

Other equities analysts have also recently issued research reports about the stock. Wells Fargo & Co set a $65.00 target price on shares of Emergent Biosolutions and gave the stock a “hold” rating in a research report on Wednesday, December 12th. Cantor Fitzgerald set a $75.00 price objective on Emergent Biosolutions and gave the company a “buy” rating in a research report on Thursday, December 13th. Chardan Capital set a $71.00 price objective on Emergent Biosolutions and gave the company a “buy” rating in a research note on Friday, February 22nd. ValuEngine downgraded shares of Emergent Biosolutions from a “buy” rating to a “hold” rating in a research note on Friday, March 1st. Finally, TheStreet lowered shares of Emergent Biosolutions from a “b+” rating to a “c+” rating in a report on Tuesday, March 12th. Four research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $70.43.

Shares of EBS traded down $0.62 during midday trading on Monday, reaching $52.65. The stock had a trading volume of 13,057 shares, compared to its average volume of 707,950. The company has a current ratio of 3.10, a quick ratio of 2.07 and a debt-to-equity ratio of 0.78. The stock has a market capitalization of $2.68 billion, a P/E ratio of 22.60, a PEG ratio of 0.82 and a beta of 1.33. Emergent Biosolutions has a 12-month low of $46.93 and a 12-month high of $73.89.

Emergent Biosolutions (NYSE:EBS) last announced its quarterly earnings data on Thursday, February 21st. The biopharmaceutical company reported $0.75 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.61 by $0.14. The company had revenue of $270.70 million for the quarter, compared to analysts’ expectations of $269.05 million. Emergent Biosolutions had a return on equity of 12.61% and a net margin of 8.02%. Emergent Biosolutions’s revenue for the quarter was up 39.7% compared to the same quarter last year. During the same period last year, the firm posted $0.74 EPS. On average, equities research analysts predict that Emergent Biosolutions will post 3.23 EPS for the current year.

In other Emergent Biosolutions news, CEO Daniel Abdun-Nabi sold 14,565 shares of the business’s stock in a transaction on Monday, March 4th. The shares were sold at an average price of $58.11, for a total transaction of $846,372.15. Following the transaction, the chief executive officer now directly owns 142,617 shares of the company’s stock, valued at approximately $8,287,473.87. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Adam Havey sold 2,430 shares of the business’s stock in a transaction on Monday, March 11th. The shares were sold at an average price of $56.93, for a total transaction of $138,339.90. Following the transaction, the executive vice president now directly owns 32,240 shares in the company, valued at $1,835,423.20. The disclosure for this sale can be found here. Insiders sold 58,132 shares of company stock worth $3,411,113 over the last three months. 13.40% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the company. Rehmann Capital Advisory Group increased its position in Emergent Biosolutions by 78.7% during the 4th quarter. Rehmann Capital Advisory Group now owns 452 shares of the biopharmaceutical company’s stock valued at $27,000 after buying an additional 199 shares in the last quarter. D.A. Davidson & CO. increased its holdings in shares of Emergent Biosolutions by 7.6% during the fourth quarter. D.A. Davidson & CO. now owns 3,667 shares of the biopharmaceutical company’s stock valued at $217,000 after acquiring an additional 259 shares in the last quarter. Lido Advisors LLC raised its position in shares of Emergent Biosolutions by 6.1% in the 4th quarter. Lido Advisors LLC now owns 4,570 shares of the biopharmaceutical company’s stock worth $270,000 after purchasing an additional 263 shares during the last quarter. Pitcairn Co. raised its position in shares of Emergent Biosolutions by 3.9% in the 4th quarter. Pitcairn Co. now owns 7,051 shares of the biopharmaceutical company’s stock worth $418,000 after purchasing an additional 266 shares during the last quarter. Finally, American International Group Inc. boosted its stake in Emergent Biosolutions by 1.0% in the 4th quarter. American International Group Inc. now owns 35,227 shares of the biopharmaceutical company’s stock worth $2,088,000 after purchasing an additional 350 shares in the last quarter. 84.63% of the stock is currently owned by hedge funds and other institutional investors.

Emergent Biosolutions Company Profile

Emergent BioSolutions Inc focuses on the development, manufacture, and commercialization of medical countermeasures that address public health threats. Its products address public health threats primarily chemical, biological, radiological, nuclear, and explosive-related threats, as well as infectious diseases.

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