Zacks Investment Research upgraded shares of GlaxoSmithKline (NYSE:GSK) from a hold rating to a buy rating in a research report sent to investors on Wednesday morning. Zacks Investment Research currently has $45.00 price objective on the pharmaceutical company’s stock.
According to Zacks, “We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Data from several of the late-state pipeline programs are expected in 2018. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Juluca – have strengthened Glaxo’s competitive position. After underperforming the broader industry in 2017, Glaxo’s shares have picked up this year. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. Meanwhile its top-selling respiratory product, Advair is also expected to face generic competition in the United States this year, which will hurt sales. Estimates have gone up ahead of Q1 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”
Several other equities analysts have also commented on the company. Deutsche Bank restated a neutral rating on shares of GlaxoSmithKline in a research note on Monday, April 9th. BNP Paribas upgraded GlaxoSmithKline from a neutral rating to an outperform rating in a research note on Wednesday, April 4th. Morgan Stanley upgraded GlaxoSmithKline from an underweight rating to an equal weight rating in a research note on Thursday, March 22nd. Cowen restated a hold rating and set a $40.00 price target on shares of GlaxoSmithKline in a research note on Thursday, February 15th. Finally, Kepler Capital Markets upgraded GlaxoSmithKline from a reduce rating to a hold rating in a research note on Friday, February 9th. One analyst has rated the stock with a sell rating, ten have given a hold rating and five have issued a buy rating to the company. The company has an average rating of Hold and an average price target of $40.21.
GSK stock opened at $40.00 on Wednesday. The company has a debt-to-equity ratio of 4.09, a quick ratio of 0.39 and a current ratio of 0.60. GlaxoSmithKline has a twelve month low of $34.52 and a twelve month high of $44.53. The firm has a market capitalization of $99,177.36, a price-to-earnings ratio of 13.84, a price-to-earnings-growth ratio of 2.13 and a beta of 0.84.
GlaxoSmithKline (NYSE:GSK) last announced its quarterly earnings results on Wednesday, February 7th. The pharmaceutical company reported $0.72 EPS for the quarter, beating the consensus estimate of $0.69 by $0.03. The firm had revenue of $10.14 billion for the quarter, compared to analyst estimates of $9.89 billion. GlaxoSmithKline had a return on equity of 130.63% and a net margin of 4.97%. sell-side analysts predict that GlaxoSmithKline will post 2.92 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 12th. Investors of record on Friday, February 23rd were given a dividend of $0.633 per share. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $2.53 dividend on an annualized basis and a yield of 6.33%. This is an increase from GlaxoSmithKline’s previous quarterly dividend of $0.50. GlaxoSmithKline’s dividend payout ratio (DPR) is presently 89.93%.
A number of hedge funds have recently modified their holdings of GSK. Field & Main Bank bought a new stake in GlaxoSmithKline during the fourth quarter valued at about $132,000. Amussen Hunsaker Associates LLC bought a new stake in GlaxoSmithKline during the fourth quarter valued at about $141,000. First Dallas Securities Inc. bought a new stake in GlaxoSmithKline during the fourth quarter valued at about $142,000. California Capital Advisors Inc. bought a new stake in GlaxoSmithKline during the fourth quarter valued at about $210,000. Finally, Capital Investment Advisory Services LLC bought a new stake in GlaxoSmithKline during the fourth quarter valued at about $219,000. 10.96% of the stock is currently owned by institutional investors.
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GlaxoSmithKline Company Profile
GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterials, dermatology, rare diseases, immuno-inflammation, and HIV, as well as vaccines.
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