Embecta Corp. (NASDAQ:EMBC) Given Consensus Recommendation of “Strong Sell” by Brokerages

Embecta Corp. (NASDAQ:EMBC) has been assigned a consensus rating of “Strong Sell” from the five ratings firms that are covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a sell recommendation and two have assigned a hold recommendation to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $11.00.

EMBC has been the topic of a number of research reports. Bank of America lowered their price target on Embecta from $11.00 to $3.00 and set an “underperform” rating on the stock in a report on Monday, May 18th. BTIG Research lowered Embecta from a “buy” rating to a “neutral” rating in a report on Tuesday, May 5th. Wall Street Zen cut Embecta from a “strong-buy” rating to a “hold” rating in a research note on Saturday, May 9th. Mizuho decreased their price target on Embecta from $12.00 to $5.00 and set a “neutral” rating for the company in a report on Wednesday, May 6th. Finally, Zacks Research cut shares of Embecta from a “hold” rating to a “strong sell” rating in a research note on Friday, May 8th.

Trending Headlines about Embecta

Here are the key news stories impacting Embecta this week:

• Negative Sentiment: Multiple law firms, including Rosen Law Firm, Bragar Eagel & Squire, Schall, Robbins, Levi & Korsinsky, and DJS Law Group, announced class actions or investigations related to Embecta, increasing legal overhang and uncertainty for shareholders. Article link
• Negative Sentiment: The lawsuits follow Embecta’s disappointing fiscal second-quarter results released on May 5, including missed EPS and revenue estimates, which are now the focus of the securities-fraud claims. Article link
• Neutral Sentiment: Embecta also named a new senior vice president and president for North America, but this management update appears secondary to the litigation-driven news flow. Article link

Hedge Funds Weigh In On Embecta

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its holdings in shares of Embecta by 38.3% in the 1st quarter. Royal Bank of Canada now owns 18,201 shares of the company’s stock valued at $232,000 after buying an additional 5,036 shares during the period. AQR Capital Management LLC grew its holdings in Embecta by 3.7% during the first quarter. AQR Capital Management LLC now owns 225,641 shares of the company’s stock worth $2,738,000 after acquiring an additional 8,109 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Embecta by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company’s stock worth $629,000 after acquiring an additional 1,159 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Embecta by 4.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,173 shares of the company’s stock worth $2,195,000 after acquiring an additional 7,894 shares in the last quarter. Finally, Jane Street Group LLC lifted its holdings in Embecta by 224.0% in the first quarter. Jane Street Group LLC now owns 132,688 shares of the company’s stock valued at $1,692,000 after acquiring an additional 91,729 shares during the period. Institutional investors and hedge funds own 93.83% of the company’s stock.

Embecta Price Performance

Shares of Embecta stock opened at $3.11 on Friday. The firm’s fifty day simple moving average is $5.30 and its 200-day simple moving average is $8.82. Embecta has a 12 month low of $2.77 and a 12 month high of $15.55. The stock has a market capitalization of $184.52 million, a price-to-earnings ratio of 1.64 and a beta of 0.83.

Embecta (NASDAQ:EMBC) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.27 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.15). The business had revenue of $221.80 million for the quarter, compared to analyst estimates of $235.67 million. Embecta had a negative return on equity of 23.96% and a net margin of 10.73%.The firm’s revenue for the quarter was down 14.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.70 EPS. Embecta has set its FY 2026 guidance at 1.550-1.75 EPS. Analysts anticipate that Embecta will post 1.62 earnings per share for the current year.

Embecta Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Thursday, May 28th were given a $0.01 dividend. The ex-dividend date was Thursday, May 28th. This represents a $0.04 dividend on an annualized basis and a yield of 1.3%. Embecta’s dividend payout ratio (DPR) is presently 2.11%.

About Embecta

Embecta Corp (NASDAQ: EMBC) is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.