Allergan PLC. (NYSE:AGN) Downgraded to Sell at Zacks Investment Research

Allergan PLC. (NYSE:AGN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday, October 17th.

According to Zacks, “Allergan’s products like Botox and Linzess and new products such as Viberzi and Vraylar, are supporting sales growth. It also boasts a strong branded pipeline. Biosimilars also represent significant opportunity. However, Allergan is facing generic competition for legacy brands like Namenda and Asacol HD as well as patent challenges for some of the other products in its branded portfolio, which concerns us. In October, a Texas federal district court invalidated four of the six patents covering Restasis, Allergan’s second best-selling drug, potentially opening doors for early generic competition. Also, competition for key growth drivers, Restasis and Linzess, is an investor concern. Allergan’s shares have underperformed the broader industry in the past one month.  Estimates have also declined slightly ahead of the Q3 earnings release. The company has a mixed record of earnings surprises in recent quarters.”

Several other analysts have also recently commented on the company. Royal Bank Of Canada reaffirmed a “buy” rating and issued a $285.00 target price on shares of Allergan PLC. in a research report on Wednesday, September 6th. Credit Suisse Group set a $243.00 target price on Allergan PLC. and gave the stock an “outperform” rating in a research report on Tuesday, October 17th. BidaskClub cut Allergan PLC. from a “buy” rating to a “hold” rating in a research report on Wednesday, August 9th. Wells Fargo & Company reaffirmed a “buy” rating on shares of Allergan PLC. in a research report on Monday, October 2nd. Finally, Deutsche Bank AG reissued a “buy” rating and set a $273.00 price objective (up previously from $265.00) on shares of Allergan PLC. in a research report on Monday, July 17th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and twelve have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $252.39.

Shares of Allergan PLC. (AGN) opened at 176.33 on Tuesday. The company’s 50 day moving average price is $208.20 and its 200-day moving average price is $229.12. The firm has a market capitalization of $58.95 billion, a P/E ratio of 5.37 and a beta of 1.15. Allergan PLC. has a 12 month low of $174.66 and a 12 month high of $256.80.

Allergan PLC. (NYSE:AGN) last issued its quarterly earnings results on Thursday, August 3rd. The company reported $4.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.95 by $0.07. Allergan PLC. had a return on equity of 7.37% and a net margin of 79.17%. The company had revenue of $4.01 billion for the quarter, compared to analysts’ expectations of $3.95 billion. During the same period last year, the firm earned $3.35 EPS. The firm’s revenue for the quarter was up 8.8% on a year-over-year basis. On average, equities analysts predict that Allergan PLC. will post $16.21 earnings per share for the current fiscal year.

Allergan PLC. announced that its Board of Directors has approved a stock repurchase plan on Monday, September 25th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to reacquire up to 2.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

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Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its position in shares of Allergan PLC. by 2.2% in the 2nd quarter. Vanguard Group Inc. now owns 22,835,689 shares of the company’s stock valued at $5,551,128,000 after buying an additional 482,220 shares in the last quarter. Northern Trust Corp boosted its stake in Allergan PLC. by 8.8% in the 2nd quarter. Northern Trust Corp now owns 4,492,944 shares of the company’s stock worth $1,092,189,000 after purchasing an additional 364,722 shares during the period. Veritas Asset Management LLP acquired a new position in Allergan PLC. in the 1st quarter worth $761,339,000. Edgewood Management LLC boosted its stake in Allergan PLC. by 7.0% in the 1st quarter. Edgewood Management LLC now owns 2,704,211 shares of the company’s stock worth $646,090,000 after purchasing an additional 178,055 shares during the period. Finally, Epoch Investment Partners Inc. boosted its stake in Allergan PLC. by 3.8% in the 1st quarter. Epoch Investment Partners Inc. now owns 2,013,415 shares of the company’s stock worth $481,045,000 after purchasing an additional 73,081 shares during the period. Institutional investors own 82.04% of the company’s stock.

About Allergan PLC.

Allergan, Inc is a multi-specialty healthcare company. The Company focuses on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter (OTC) products. It discovers, develops and commercializes a range of products for the ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, urological and other specialty markets.

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