Alkermes PLC (NASDAQ:ALKS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday.
According to Zacks, “Alkermes’ estimates have been moving down lately ahead of the company’s third-quarter 2016 earnings release. The company is highly dependent on manufacturing and/or royalty revenues on net sales of products that are commercialized by the company’s partners. Partnership-related setbacks may weigh heavily on the company and could have a material adverse effect on its top-line growth. Alkermes expects important data readouts across its pipeline over the next several quarters. Given its history of pipeline setbacks, any obstacle in the process of development of its pipeline candidates would weigh heavily on the stock. Stiff competition remains a threat as well. Meanwhile, Alkermes raised and updated its 2016 outlook on the back of the strong performance of Vivitrol in the second quarter of 2016. While Vivitrol should benefit from the newly passed legislation, CARA, gaining reimbursement and access for Aristada bodes well.”
A number of other analysts have also issued reports on ALKS. Leerink Swann reissued an “outperform” rating and issued a $54.00 price target (down from $58.00) on shares of Alkermes PLC in a research report on Tuesday, June 28th. Barclays PLC reissued a “buy” rating and issued a $65.00 price target (up from $50.00) on shares of Alkermes PLC in a research report on Tuesday, July 12th. Jefferies Group reissued a “buy” rating on shares of Alkermes PLC in a research report on Sunday, July 17th. JPMorgan Chase & Co. reissued a “hold” rating and issued a $51.00 price target on shares of Alkermes PLC in a research report on Friday, July 29th. Finally, Morgan Stanley reissued a “sell” rating and issued a $41.00 price target on shares of Alkermes PLC in a research report on Friday, September 2nd. Two analysts have rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $55.90.
Alkermes PLC (NASDAQ:ALKS) traded down 2.37% during midday trading on Friday, reaching $42.83. 457,700 shares of the company’s stock traded hands. The company’s 50-day moving average price is $46.82 and its 200 day moving average price is $44.13. The stock’s market capitalization is $6.49 billion. Alkermes PLC has a 52 week low of $27.14 and a 52 week high of $80.71.
Alkermes PLC (NASDAQ:ALKS) last posted its quarterly earnings data on Thursday, July 28th. The company reported ($0.01) earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.10) by $0.09. Alkermes PLC had a negative net margin of 41.19% and a negative return on equity of 14.18%. The company earned $195.20 million during the quarter, compared to analyst estimates of $174.15 million. During the same quarter last year, the firm posted ($0.09) EPS. The business’s revenue for the quarter was up 28.9% on a year-over-year basis. On average, equities research analysts expect that Alkermes PLC will post ($0.12) earnings per share for the current year.
In other Alkermes PLC news, CMO Elliot Ehrich sold 35,199 shares of the stock in a transaction that occurred on Wednesday, July 27th. The stock was sold at an average price of $51.95, for a total transaction of $1,828,588.05. Following the transaction, the chief marketing officer now owns 46,111 shares in the company, valued at $2,395,466.45. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Paul J. Mitchell sold 2,000 shares of the stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $45.92, for a total value of $91,840.00. Following the transaction, the director now owns 10,000 shares in the company, valued at approximately $459,200. The disclosure for this sale can be found here. Company insiders own 4.75% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the stock. FMR LLC increased its position in shares of Alkermes PLC by 0.3% in the second quarter. FMR LLC now owns 22,674,809 shares of the company’s stock valued at $980,005,000 after buying an additional 63,567 shares during the period. Wellington Management Group LLP increased its position in shares of Alkermes PLC by 5.0% in the first quarter. Wellington Management Group LLP now owns 21,097,768 shares of the company’s stock valued at $721,333,000 after buying an additional 995,186 shares during the period. Vanguard Group Inc. increased its position in shares of Alkermes PLC by 3.2% in the second quarter. Vanguard Group Inc. now owns 11,050,080 shares of the company’s stock valued at $477,585,000 after buying an additional 343,746 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in shares of Alkermes PLC by 3.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,869,344 shares of the company’s stock valued at $167,233,000 after buying an additional 119,597 shares during the period. Finally, State Street Corp increased its position in shares of Alkermes PLC by 24.0% in the first quarter. State Street Corp now owns 3,726,611 shares of the company’s stock valued at $127,418,000 after buying an additional 720,887 shares during the period. Institutional investors own 95.13% of the company’s stock.
About Alkermes PLC
Alkermes Public Limited Company is a biopharmaceutical company. The Company is engaged in researching, developing and commercializing, both with partners and on its own, pharmaceutical products that are designed to address medical needs of patients in therapeutic areas. The Company has a portfolio of approximately 20 products and a clinical pipeline of product candidates that address central nervous system (CNS) disorders, such as schizophrenia, depression, addiction and multiple sclerosis.
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