Alkermes (ALKS) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Alkermes (NASDAQ:ALKS) from a hold rating to a buy rating in a report issued on Wednesday morning. Zacks Investment Research currently has $48.00 target price on the stock.

According to Zacks, “Alkermes' Vivitrol and Aristada continue to drive growth for the company. The company also reiterated its guidance. primary growth drivers. 2018 is expected to be a transformative year for Alkermes’ development pipeline, with key events being the phase III data readout for ALKS 3831 in schizophrenia, submission of BIIB098 (ALKS 8700) NDA and phase I data read-out for ALKS 4230. Regulatory review is underway for ALKS 5461 being evaluated for major depressive disorder. In July 2018, FDA approved a label expansion of Aristada- Aristada Initio which in combination with a single 30 milligram dose of oral aripiprazole, is designed to enable initiation of Aristada on day one and replaces the need for 21 days of oral supplementation. However, Alkermes is highly dependent on manufacturing and/or royalty revenue. Share price of Alkermes have outperformed industry in past one month. Earnings estimates have increased ahead of Q3 earnings release.”

ALKS has been the topic of a number of other research reports. Stifel Nicolaus began coverage on Alkermes in a research report on Monday, August 6th. They issued a hold rating and a $45.00 price objective on the stock. BidaskClub downgraded Alkermes from a hold rating to a sell rating in a research report on Wednesday, September 19th. Morgan Stanley downgraded Alkermes from an equal weight rating to an underweight rating and lowered their price objective for the stock from $67.00 to $42.00 in a research report on Thursday, June 21st. Credit Suisse Group lowered their price objective on Alkermes from $57.00 to $51.00 and set a buy rating on the stock in a research report on Friday, July 27th. Finally, Bank of America lowered their price objective on Alkermes from $56.00 to $54.00 and set a buy rating on the stock in a research report on Friday, July 27th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and nine have given a buy rating to the company’s stock. Alkermes presently has a consensus rating of Hold and a consensus target price of $55.43.

Alkermes stock opened at $41.64 on Wednesday. Alkermes has a one year low of $38.23 and a one year high of $71.22. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.92 and a quick ratio of 2.62. The firm has a market capitalization of $6.59 billion, a PE ratio of -112.54 and a beta of 1.72.

Alkermes (NASDAQ:ALKS) last posted its quarterly earnings results on Thursday, July 26th. The company reported $0.29 EPS for the quarter, topping the Zacks’ consensus estimate of ($0.11) by $0.40. Alkermes had a negative return on equity of 0.29% and a negative net margin of 13.81%. The firm had revenue of $304.64 million during the quarter, compared to analyst estimates of $261.58 million. During the same period last year, the company earned $0.01 earnings per share. The business’s revenue for the quarter was up 39.2% on a year-over-year basis. Analysts anticipate that Alkermes will post -0.67 EPS for the current fiscal year.

In other Alkermes news, Director Paul J. Mitchell sold 1,000 shares of the firm’s stock in a transaction dated Wednesday, August 1st. The stock was sold at an average price of $43.68, for a total transaction of $43,680.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Floyd E. Bloom sold 20,000 shares of the firm’s stock in a transaction dated Monday, July 16th. The shares were sold at an average price of $43.95, for a total value of $879,000.00. The disclosure for this sale can be found here. Insiders sold 23,000 shares of company stock worth $1,009,680 in the last quarter. 5.51% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Baird Financial Group Inc. purchased a new stake in Alkermes during the first quarter valued at about $206,000. Bayesian Capital Management LP purchased a new stake in Alkermes during the first quarter valued at about $284,000. NumerixS Investment Technologies Inc purchased a new stake in Alkermes during the second quarter valued at about $233,000. Clarus Wealth Advisors raised its position in Alkermes by 46.2% during the third quarter. Clarus Wealth Advisors now owns 5,700 shares of the company’s stock valued at $242,000 after purchasing an additional 1,800 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in Alkermes during the first quarter valued at about $333,000.

About Alkermes

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in various therapeutic areas in the United States, Ireland, and internationally. The company's marketed products include ARISTADA (aripiprazole lauroxil), an extended-release intramuscular injectable suspension for the treatment of schizophrenia; VIVITROL (naltrexone for extended-release injectable suspension) for the treatment of alcohol and opioid dependence; INVEGA SUSTENNA for the treatment of schizophrenia and schizoaffective disorder; XEPLION, INVEGA TRINZA, and TREVICTA for treating schizophrenia; RISPERDAL CONSTA for the treatment of schizophrenia and bipolar I disorder; AMPYRA (dalfampridine)/FAMPYRA (fampridine) to enhance walking in adults with multiple sclerosis (MS) who have walking disability; and BYDUREON (exenatide extended-release for injectable suspension) and BYDUREON BCise for the treatment of type 2 diabetes.

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