River Road Asset Management LLC Raises Position in Embecta Corp. $EMBC

River Road Asset Management LLC lifted its holdings in shares of Embecta Corp. (NASDAQ:EMBC) by 5.3% during the 4th quarter, Holdings Channel.com reports. The firm owned 3,416,401 shares of the company’s stock after acquiring an additional 171,194 shares during the period. River Road Asset Management LLC owned 0.06% of Embecta worth $40,587,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. Allspring Global Investments Holdings LLC lifted its position in Embecta by 9.0% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 12,708 shares of the company’s stock worth $148,000 after buying an additional 1,050 shares during the period. Brooklyn Investment Group grew its holdings in Embecta by 5.9% in the 4th quarter. Brooklyn Investment Group now owns 19,736 shares of the company’s stock valued at $234,000 after buying an additional 1,098 shares during the period. The Manufacturers Life Insurance Company grew its holdings in Embecta by 5.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 21,589 shares of the company’s stock valued at $209,000 after buying an additional 1,110 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Embecta by 2.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company’s stock valued at $629,000 after acquiring an additional 1,159 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Embecta by 1.0% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 150,271 shares of the company’s stock valued at $1,785,000 after acquiring an additional 1,520 shares during the last quarter. Hedge funds and other institutional investors own 93.83% of the company’s stock.

Key Headlines Impacting 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

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Weiss Ratings cut shares of Embecta from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, May 6th. Bank of America lowered their target price on shares of Embecta from $11.00 to $3.00 and set an “underperform” rating for the company in a report on Monday, May 18th. Mizuho dropped their price target on shares of Embecta from $12.00 to $5.00 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. Wall Street Zen downgraded shares of Embecta from a “strong-buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Zacks Research lowered shares of Embecta from a “hold” rating to a “strong sell” rating in a report on Friday, May 8th. Two investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Strong Sell” and an average price target of $11.00.

Embecta Price Performance

Embecta stock opened at $3.11 on Friday. The stock’s 50-day moving average is $5.30 and its 200-day moving average is $8.82. The company has a market cap of $184.52 million, a price-to-earnings ratio of 1.64 and a beta of 0.83. Embecta Corp. has a 12 month low of $2.77 and a 12 month high of $15.55.

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

Embecta Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Thursday, May 28th were given a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Thursday, May 28th. Embecta’s payout ratio is 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.