Emergent Biosolutions (EBS) Rating Lowered to Sell at Zacks Investment Research

Emergent Biosolutions (NYSE:EBS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.

According to Zacks, “Emergent derives the majority of revenues from sales of BioThrax. Hence, it’s sole dependence on BioThrax for its revenues is concerning. Any hiccup in the production of BioThrax could severely hamper the company’s future growth prospects. Moreover, Emergent depends on certain single-source suppliers for key materials and services that are necessary for the manufacture of BioThrax which is also a matter of concern. Meanwhile, Emergent faces competition from a number of companies with Biodefense products. However, the company’s follow-on contract with the CDC and deals with the BARDA for BioThrax and NuThrax (next-generation anthrax vaccine) bode well for growth. We are also positive on Emergent’s spin-off of its biosciences business into a separate publicly traded company as it resulted in reduction of the company’s cost structure. Shares of the company have outperformed the broader industry in the last one year.”

EBS has been the topic of several other reports. Goldman Sachs Group started coverage on shares of Emergent Biosolutions in a report on Wednesday, January 24th. They issued a “neutral” rating and a $55.00 price target on the stock. Chardan Capital upped their price target on shares of Emergent Biosolutions from $47.00 to $53.00 and gave the company a “buy” rating in a report on Tuesday, January 16th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $51.00.

Shares of Emergent Biosolutions (NYSE:EBS) traded down $2.17 on Friday, hitting $42.85. 254,499 shares of the stock were exchanged, compared to its average volume of 321,832. The stock has a market capitalization of $2,335.89, a price-to-earnings ratio of 25.36, a PEG ratio of 0.96 and a beta of 1.28. The company has a quick ratio of 6.46, a current ratio of 7.37 and a debt-to-equity ratio of 0.38. Emergent Biosolutions has a 12-month low of $27.94 and a 12-month high of $51.25.

Emergent Biosolutions (NYSE:EBS) last announced its quarterly earnings data on Thursday, November 2nd. The biopharmaceutical company reported $0.73 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.32. The firm had revenue of $149.43 million for the quarter, compared to analyst estimates of $124.55 million. Emergent Biosolutions had a net margin of 15.60% and a return on equity of 15.20%. The business’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.56 earnings per share. equities research analysts forecast that Emergent Biosolutions will post 1.71 EPS for the current fiscal year.

In other news, CEO Daniel Abdun-Nabi sold 20,000 shares of the stock in a transaction dated Wednesday, December 13th. The shares were sold at an average price of $45.99, for a total transaction of $919,800.00. Following the sale, the chief executive officer now directly owns 224,134 shares of the company’s stock, valued at approximately $10,307,922.66. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Jerome M. Hauer sold 5,152 shares of the stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $50.91, for a total transaction of $262,288.32. Following the sale, the director now directly owns 23,797 shares in the company, valued at $1,211,505.27. The disclosure for this sale can be found here. Over the last three months, insiders have sold 165,722 shares of company stock worth $7,219,341. Corporate insiders own 16.50% of the company’s stock.

Several hedge funds have recently bought and sold shares of the company. Northern Trust Corp increased its holdings in shares of Emergent Biosolutions by 47.2% during the 2nd quarter. Northern Trust Corp now owns 906,731 shares of the biopharmaceutical company’s stock worth $30,747,000 after buying an additional 290,863 shares during the last quarter. Peregrine Capital Management LLC boosted its stake in shares of Emergent Biosolutions by 40.8% in the third quarter. Peregrine Capital Management LLC now owns 454,857 shares of the biopharmaceutical company’s stock valued at $18,399,000 after purchasing an additional 131,692 shares during the period. Rice Hall James & Associates LLC boosted its stake in shares of Emergent Biosolutions by 19.6% in the fourth quarter. Rice Hall James & Associates LLC now owns 769,096 shares of the biopharmaceutical company’s stock valued at $35,740,000 after purchasing an additional 126,069 shares during the period. Boston Advisors LLC boosted its stake in shares of Emergent Biosolutions by 814.8% in the fourth quarter. Boston Advisors LLC now owns 132,332 shares of the biopharmaceutical company’s stock valued at $6,149,000 after purchasing an additional 117,867 shares during the period. Finally, New Amsterdam Partners LLC NY boosted its stake in shares of Emergent Biosolutions by 60.0% in the fourth quarter. New Amsterdam Partners LLC NY now owns 261,371 shares of the biopharmaceutical company’s stock valued at $12,146,000 after purchasing an additional 98,034 shares during the period. 74.31% of the stock is currently owned by institutional investors and hedge funds.

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About Emergent Biosolutions

Emergent BioSolutions Inc is a life sciences company. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. It focuses on developing, manufacturing and commercializing medical countermeasures that address public health threats (PHTs).

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