Zacks Investment Research cut shares of GlaxoSmithKline (NYSE:GSK) from a buy rating to a hold rating in a research note released on Wednesday morning.
According to Zacks, “Glaxo enjoys a diversified base and presence in different geographical areas. Glaxo should continue to see strong performance in its Pharmaceuticals and Vaccines business units. We are positive on the company’s efforts to develop its pipeline. We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Jucalla – have strengthened Glaxo’s competitive position. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. The slowdown in sales of the Consumer Healthcare segment in 2017 is also a concern. Estimates have declined slightly ahead of Q4 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”
A number of other analysts have also issued reports on the stock. UBS Group upgraded shares of GlaxoSmithKline from a neutral rating to a buy rating and raised their target price for the stock from $35.04 to $35.85 in a research report on Monday, November 27th. TheStreet upgraded shares of GlaxoSmithKline from a c+ rating to a b rating in a research report on Wednesday, October 25th. JPMorgan Chase & Co. restated a neutral rating on shares of GlaxoSmithKline in a research report on Tuesday, October 24th. Argus decreased their target price on shares of GlaxoSmithKline to $40.00 and set a buy rating on the stock in a research report on Thursday, November 30th. Finally, Cowen set a $38.00 target price on shares of GlaxoSmithKline and gave the stock a hold rating in a research report on Monday, December 11th. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating and six have issued a buy rating to the company. GlaxoSmithKline currently has an average rating of Hold and a consensus price target of $38.57.
GlaxoSmithKline (GSK) traded up $0.03 during mid-day trading on Wednesday, hitting $38.20. 3,478,233 shares of the stock traded hands, compared to its average volume of 5,510,000. The firm has a market capitalization of $93,270.00, a price-to-earnings ratio of 28.94, a PEG ratio of 2.36 and a beta of 0.97. GlaxoSmithKline has a twelve month low of $34.52 and a twelve month high of $44.53. The company has a quick ratio of 0.44, a current ratio of 0.64 and a debt-to-equity ratio of 2.96.
GlaxoSmithKline (NYSE:GSK) last announced its earnings results on Wednesday, October 25th. The pharmaceutical company reported $0.85 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.84 by $0.01. GlaxoSmithKline had a net margin of 7.79% and a return on equity of 115.30%. sell-side analysts expect that GlaxoSmithKline will post 2.92 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Thursday, January 11th. Shareholders of record on Friday, November 10th were paid a dividend of $0.5037 per share. The ex-dividend date was Thursday, November 9th. This represents a $2.01 dividend on an annualized basis and a yield of 5.27%. This is an increase from GlaxoSmithKline’s previous quarterly dividend of $0.49. GlaxoSmithKline’s dividend payout ratio (DPR) is currently 154.55%.
In related news, major shareholder Plc Glaxosmithkline purchased 428,571 shares of the business’s stock in a transaction on Monday, November 6th. The shares were bought at an average price of $14.00 per share, with a total value of $5,999,994.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 10.00% of the company’s stock.
Large investors have recently bought and sold shares of the business. FinTrust Investment Advisory Services LLC purchased a new position in GlaxoSmithKline during the third quarter worth approximately $401,000. Private Advisor Group LLC raised its stake in GlaxoSmithKline by 7.2% during the third quarter. Private Advisor Group LLC now owns 77,976 shares of the pharmaceutical company’s stock worth $3,166,000 after purchasing an additional 5,212 shares during the period. San Francisco Sentry Investment Group CA raised its stake in GlaxoSmithKline by 110.3% during the third quarter. San Francisco Sentry Investment Group CA now owns 8,749 shares of the pharmaceutical company’s stock worth $356,000 after purchasing an additional 4,589 shares during the period. Renaissance Technologies LLC raised its stake in GlaxoSmithKline by 112.1% during the second quarter. Renaissance Technologies LLC now owns 9,338,000 shares of the pharmaceutical company’s stock worth $402,655,000 after purchasing an additional 4,935,900 shares during the period. Finally, SG Americas Securities LLC purchased a new position in GlaxoSmithKline during the third quarter worth approximately $1,209,000. 9.80% of the stock is currently owned by institutional investors.
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GlaxoSmithKline plc is a global healthcare company. The Company operates through three segments: Pharmaceuticals, Vaccines and Consumer Healthcare. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases.
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