Hologic (HOLX) Rating Lowered to Sell at Zacks Investment Research

Hologic (NASDAQ:HOLX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “We are disappointed with the decline in Hologic's revenues at the Diagnostics segment. The blood screening divestiture is also likely to impede growth for the company. Further, the company’s lowering of the revenue guidance for fiscal 2018 on reduced sales expectations from the Cynosure business raises concern. However, Hologic outperformed its industry over the past three months. The company seeing growth across all geographical regions buoys optimism. International revenue was particularly robust fueled by strong contribution from Cynosure acquisition.  Buoyed on differentiated products, Breast Health has been performing well. We are upbeat about the recent FDA PMAs for the ThinPrep Integrated Imager and Clarity HD high-resolution 3D imaging and Intelligent 2D imaging technology.”

HOLX has been the subject of a number of other research reports. Goldman Sachs Group downgraded Hologic from a “conviction-buy” rating to a “buy” rating and set a $43.00 target price for the company. in a research report on Monday, March 26th. Needham & Company LLC restated a “buy” rating and set a $43.00 target price (down previously from $50.00) on shares of Hologic in a research report on Tuesday, May 1st. BidaskClub upgraded Hologic from a “strong sell” rating to a “sell” rating in a research report on Wednesday, April 18th. ValuEngine downgraded Hologic from a “hold” rating to a “sell” rating in a research report on Thursday, May 3rd. Finally, Canaccord Genuity downgraded Hologic from a “buy” rating to a “hold” rating and dropped their target price for the stock from $48.00 to $39.00 in a research report on Thursday, May 3rd. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and nine have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $44.87.

Hologic traded down $0.09, hitting $39.54, during trading on Tuesday, according to MarketBeat Ratings. The company’s stock had a trading volume of 75,500 shares, compared to its average volume of 2,281,919. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.98 and a current ratio of 1.26. Hologic has a 12 month low of $35.10 and a 12 month high of $45.60. The company has a market cap of $10.85 billion, a price-to-earnings ratio of 19.57, a PEG ratio of 1.87 and a beta of 0.82.

Hologic (NASDAQ:HOLX) last issued its quarterly earnings data on Wednesday, May 2nd. The medical equipment provider reported $0.53 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.53. The firm had revenue of $789.30 million during the quarter, compared to the consensus estimate of $781.23 million. Hologic had a positive return on equity of 20.86% and a negative net margin of 4.15%. The business’s revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.50 EPS. research analysts predict that Hologic will post 2.23 EPS for the current fiscal year.

In related news, insider Peter J. Valenti III sold 10,107 shares of Hologic stock in a transaction on Tuesday, May 29th. The stock was sold at an average price of $38.52, for a total transaction of $389,321.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Karleen Marie Oberton sold 12,196 shares of Hologic stock in a transaction on Wednesday, May 2nd. The stock was sold at an average price of $40.00, for a total value of $487,840.00. Following the sale, the vice president now directly owns 13,825 shares of the company’s stock, valued at $553,000. The disclosure for this sale can be found here. 0.88% of the stock is owned by insiders.

Several institutional investors have recently made changes to their positions in the stock. Brasada Capital Management LP grew its stake in Hologic by 39.0% in the first quarter. Brasada Capital Management LP now owns 8,142 shares of the medical equipment provider’s stock valued at $304,000 after acquiring an additional 2,283 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Hologic in the first quarter valued at about $625,000. Amalgamated Bank grew its stake in Hologic by 4.6% in the first quarter. Amalgamated Bank now owns 37,694 shares of the medical equipment provider’s stock valued at $1,408,000 after acquiring an additional 1,674 shares during the period. Principal Financial Group Inc. grew its stake in Hologic by 0.5% in the first quarter. Principal Financial Group Inc. now owns 406,319 shares of the medical equipment provider’s stock valued at $15,180,000 after acquiring an additional 2,131 shares during the period. Finally, CIBC World Markets Inc. acquired a new position in Hologic in the first quarter valued at about $359,000. 93.34% of the stock is owned by institutional investors and hedge funds.

About Hologic

Hologic, Inc develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women in the United States, Europe, the Asia-Pacific, and internationally. The company operates through five segments: Diagnostics, Breast Health, Medical Aesthetics, GYN Surgical, and Skeletal Health.

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