AmerisourceBergen (NYSE:ABC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Thursday. The firm presently has a $111.00 target price on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 10.93% from the stock’s previous close.
According to Zacks, “Despite trading below the broader industry over the last year, AmerisourceBergen is expected to benefit from generics growth. The company has been actively pursuing acquisitions to strengthen its core areas. The recent takeover of H.D. Smith, the largest independent wholesaler in the United States, is worth a mention in this regard. The deal is worth for $815 million. Solid performance in the Pharmaceutical Distribution Segment is also a positive. On the flip side, 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. Cutthroat competition in niche space also adds to the woes. “
A number of other equities analysts have also recently weighed in on ABC. Needham & Company LLC upped their price target on AmerisourceBergen from $86.00 to $88.00 and gave the stock a “buy” rating in a report on Wednesday, November 22nd. Jefferies Group set a $85.00 price target on AmerisourceBergen and gave the stock a “hold” rating in a report on Sunday, October 29th. Robert W. Baird set a $99.00 price target on AmerisourceBergen and gave the stock a “buy” rating in a report on Friday, December 1st. Leerink Swann set a $105.00 price target on AmerisourceBergen and gave the stock a “buy” rating in a report on Tuesday, January 2nd. Finally, Evercore ISI initiated coverage on AmerisourceBergen in a report on Thursday, January 4th. They issued an “outperform” rating and a $105.00 price target for the company. One research analyst has rated the stock with a sell rating, six have given a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $96.39.
AmerisourceBergen (NYSE ABC) opened at $100.06 on Thursday. The firm has a market capitalization of $21,995.75, a PE ratio of 54.09, a P/E/G ratio of 1.70 and a beta of 0.99. AmerisourceBergen has a fifty-two week low of $71.90 and a fifty-two week high of $101.85. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.83.
AmerisourceBergen (NYSE:ABC) last released its quarterly earnings results on Thursday, November 2nd. The company reported $1.33 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.01. The company had revenue of $39.12 billion during the quarter, compared to analysts’ expectations of $40.10 billion. AmerisourceBergen had a return on equity of 56.29% and a net margin of 0.27%. AmerisourceBergen’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.30 EPS. analysts forecast that AmerisourceBergen will post 6.24 earnings per share for the current fiscal year.
In other AmerisourceBergen news, CFO Tim G. Guttman sold 11,600 shares of the stock in a transaction that occurred on Friday, November 3rd. The stock was sold at an average price of $74.28, for a total transaction of $861,648.00. Following the completion of the transaction, the chief financial officer now owns 40,326 shares of the company’s stock, valued at $2,995,415.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard W. Gochnauer sold 2,000 shares of the stock in a transaction that occurred on Wednesday, January 10th. The shares were sold at an average price of $96.54, for a total value of $193,080.00. Following the transaction, the director now directly owns 12,947 shares of the company’s stock, valued at approximately $1,249,903.38. The disclosure for this sale can be found here. Insiders have sold 203,823 shares of company stock valued at $17,145,148 in the last three months. Insiders own 27.40% of the company’s stock.
Several hedge funds have recently bought and sold shares of ABC. Profund Advisors LLC grew its position in shares of AmerisourceBergen by 21.0% in the second quarter. Profund Advisors LLC now owns 5,520 shares of the company’s stock valued at $522,000 after purchasing an additional 957 shares in the last quarter. ProShare Advisors LLC grew its position in shares of AmerisourceBergen by 1.3% in the second quarter. ProShare Advisors LLC now owns 36,783 shares of the company’s stock valued at $3,477,000 after purchasing an additional 482 shares in the last quarter. Thrivent Financial For Lutherans grew its position in shares of AmerisourceBergen by 3.0% in the second quarter. Thrivent Financial For Lutherans now owns 6,250 shares of the company’s stock valued at $591,000 after purchasing an additional 180 shares in the last quarter. Mutual of America Capital Management LLC grew its position in shares of AmerisourceBergen by 2.9% in the second quarter. Mutual of America Capital Management LLC now owns 20,358 shares of the company’s stock valued at $1,924,000 after purchasing an additional 576 shares in the last quarter. Finally, UBS Asset Management Americas Inc. grew its position in shares of AmerisourceBergen by 32.9% in the second quarter. UBS Asset Management Americas Inc. now owns 791,294 shares of the company’s stock valued at $74,801,000 after purchasing an additional 195,668 shares in the last quarter. Institutional investors and hedge funds own 67.83% of the company’s stock.
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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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