AmerisourceBergen (NYSE:ABC) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of AmerisourceBergen (NYSE:ABC) from a hold rating to a buy rating in a report issued on Wednesday, January 3rd. Zacks Investment Research currently has $105.00 target price on the stock.
According to Zacks, “AmerisourceBergen has been trading below the broader industry over the last year. However, the company is expected to benefit from generics growth. AmerisourceBergen has been actively pursuing acquisitions to strengthen its core areas. Solid performance in the Pharmaceutical Distribution Segment is a positive. Strong sales in the oncology unit have enhanced AmerisourceBergen Drug Corporation (ABDC) sales. The company has announced that it will acqure H.D. Smith, the largest independent wholesaler in the United States. On the flipside, AmerisourceBergen faces headwinds due to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Furthermore, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. “
ABC has been the topic of a number of other research reports. Needham & Company LLC increased their price objective on AmerisourceBergen from $86.00 to $88.00 and gave the stock a buy rating in a research report on Wednesday, November 22nd. Robert W. Baird reiterated a buy rating and issued a $96.00 price objective on shares of AmerisourceBergen in a research report on Monday, November 6th. Mizuho set a $92.00 price objective on AmerisourceBergen and gave the stock a hold rating in a research report on Tuesday, October 24th. ValuEngine upgraded AmerisourceBergen from a hold rating to a buy rating in a research report on Tuesday, October 31st. Finally, Deutsche Bank began coverage on AmerisourceBergen in a research report on Monday, December 4th. They issued a buy rating and a $97.00 price objective on the stock. One research analyst has rated the stock with a sell rating, six have given a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. AmerisourceBergen presently has a consensus rating of Buy and an average target price of $98.39.
AmerisourceBergen (NYSE:ABC) last posted its quarterly earnings results on Thursday, November 2nd. The company reported $1.33 EPS for the quarter, topping the Zacks’ consensus estimate of $1.32 by $0.01. AmerisourceBergen had a return on equity of 56.29% and a net margin of 0.27%. The firm had revenue of $39.12 billion during the quarter, compared to analyst estimates of $40.10 billion. During the same period last year, the company earned $1.30 earnings per share. The business’s revenue for the quarter was up 4.2% on a year-over-year basis. research analysts anticipate that AmerisourceBergen will post 6.25 EPS for the current fiscal year.
In other news, SVP Lazarus Krikorian sold 16,427 shares of AmerisourceBergen stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $84.86, for a total value of $1,393,995.22. Following the transaction, the senior vice president now owns 23,360 shares in the company, valued at $1,982,329.60. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Tim G. Guttman sold 11,600 shares of AmerisourceBergen stock in a transaction dated Friday, November 3rd. The stock was sold at an average price of $74.28, for a total value of $861,648.00. Following the completion of the transaction, the chief financial officer now owns 40,326 shares in the company, valued at approximately $2,995,415.28. The disclosure for this sale can be found here. Insiders have sold 203,823 shares of company stock worth $17,145,148 in the last 90 days. Company insiders own 27.30% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in ABC. Victory Capital Management Inc. increased its holdings in shares of AmerisourceBergen by 7.2% in the second quarter. Victory Capital Management Inc. now owns 38,045 shares of the company’s stock worth $3,596,000 after buying an additional 2,559 shares during the period. Pinnacle Associates Ltd. purchased a new position in shares of AmerisourceBergen in the second quarter worth about $203,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its holdings in shares of AmerisourceBergen by 0.7% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 12,329 shares of the company’s stock worth $1,165,000 after buying an additional 80 shares during the period. Kayne Anderson Rudnick Investment Management LLC increased its holdings in shares of AmerisourceBergen by 5.5% in the second quarter. Kayne Anderson Rudnick Investment Management LLC now owns 44,785 shares of the company’s stock worth $4,234,000 after buying an additional 2,320 shares during the period. Finally, Freestone Capital Holdings LLC increased its holdings in shares of AmerisourceBergen by 0.3% in the second quarter. Freestone Capital Holdings LLC now owns 181,679 shares of the company’s stock worth $17,174,000 after buying an additional 504 shares during the period. Hedge funds and other institutional investors own 67.96% of the company’s stock.
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AmerisourceBergen Company Profile
AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers.
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