Zacks Investment Research Downgrades AmerisourceBergen (ABC) to Sell

AmerisourceBergen (NYSE:ABC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

According to Zacks, “AmerisourceBergen’s dull performances in the PharMEDium and Lash unit have been a headwind in the last couple of quarters. Contraction in gross and operating margin in the last reported quarter raises concern. The company faces other headwinds like conversion of branded drugs and lower price generics. Cutthroat competition in the MedTech space adds to the woes. On the brighter side, the company continues to gain from, businesses like World Courier and Xcenda which have been raking in huge profits since quite some time. The company’s specialty distribution business also continues to contribute significantly to its topline. Additionally, AmerisourceBergen’s Global Commercialization Services and Animal Health unit saw a strong fourth quarter. A positive guidance for 2019 buoys optimism. AmerisourceBergen has outperformed the industry in a year’s time. “

ABC has been the topic of several other reports. Morgan Stanley raised their price objective on AmerisourceBergen from $88.00 to $91.00 and gave the company an “equal weight” rating in a research note on Monday. Royal Bank of Canada reduced their price objective on AmerisourceBergen from $90.00 to $87.00 and set a “hold” rating on the stock in a research note on Friday, November 30th. ValuEngine lowered AmerisourceBergen from a “hold” rating to a “sell” rating in a research note on Wednesday, September 12th. Finally, Mizuho reaffirmed a “neutral” rating on shares of AmerisourceBergen in a research note on Wednesday, September 19th. One analyst has rated the stock with a sell rating, seven have given a hold rating and eight have issued a buy rating to the company’s stock. AmerisourceBergen currently has a consensus rating of “Hold” and an average target price of $101.36.

Shares of NYSE ABC opened at $87.61 on Tuesday. The company has a current ratio of 0.93, a quick ratio of 0.50 and a debt-to-equity ratio of 1.48. AmerisourceBergen has a 52 week low of $77.28 and a 52 week high of $106.27. The firm has a market capitalization of $18.84 billion, a P/E ratio of 13.50, a P/E/G ratio of 1.42 and a beta of 0.94.

AmerisourceBergen (NYSE:ABC) last issued its quarterly earnings results on Tuesday, November 6th. The company reported $1.45 EPS for the quarter, topping the Zacks’ consensus estimate of $1.44 by $0.01. The company had revenue of $43.30 billion for the quarter, compared to analysts’ expectations of $43.27 billion. AmerisourceBergen had a return on equity of 45.54% and a net margin of 0.99%. AmerisourceBergen’s revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the business earned $1.33 earnings per share. As a group, equities analysts anticipate that AmerisourceBergen will post 6.81 EPS for the current year.

In other news, EVP Gina Clark sold 29,549 shares of AmerisourceBergen stock in a transaction dated Wednesday, November 21st. The stock was sold at an average price of $88.33, for a total transaction of $2,610,063.17. Following the sale, the executive vice president now directly owns 45,344 shares of the company’s stock, valued at $4,005,235.52. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Steven H. Collis sold 21,350 shares of AmerisourceBergen stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $88.92, for a total value of $1,898,442.00. The disclosure for this sale can be found here. Insiders have sold 142,753 shares of company stock worth $12,826,784 over the last three months. Insiders own 27.30% of the company’s stock.

Hedge funds have recently made changes to their positions in the company. Migdal Insurance & Financial Holdings Ltd. lifted its stake in shares of AmerisourceBergen by 140.9% in the third quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,142 shares of the company’s stock worth $105,000 after acquiring an additional 668 shares during the period. Financial Gravity Wealth Inc. lifted its stake in shares of AmerisourceBergen by 93.2% in the third quarter. Financial Gravity Wealth Inc. now owns 1,254 shares of the company’s stock worth $108,000 after acquiring an additional 605 shares during the period. Truvestments Capital LLC acquired a new position in shares of AmerisourceBergen in the third quarter worth approximately $120,000. Centaurus Financial Inc. acquired a new position in shares of AmerisourceBergen in the second quarter worth approximately $129,000. Finally, Livingston Group Asset Management CO operating as Southport Capital Management acquired a new position in shares of AmerisourceBergen in the third quarter worth approximately $130,000. 64.58% of the stock is currently owned by hedge funds and other institutional investors.

AmerisourceBergen Company Profile

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers.

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