Embecta Corp. (NASDAQ:EMBC) Receives Average Recommendation of “Reduce” from Analysts

Embecta Corp. (NASDAQ:EMBC) has earned an average rating of “Reduce” from the five research firms that are currently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating and three have given a hold rating to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $11.00.

A number of research firms have commented on EMBC. Bank of America reduced their target price on Embecta from $11.00 to $3.00 and set an “underperform” rating on the stock in a research report on Monday, May 18th. Wall Street Zen cut Embecta from a “strong-buy” rating to a “hold” rating in a report on Saturday, May 9th. Weiss Ratings downgraded Embecta from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, August 3rd. Zacks Research upgraded shares of Embecta from a “strong sell” rating to a “hold” rating in a report on Friday, July 17th. Finally, Mizuho reduced their price objective on shares of Embecta from $12.00 to $5.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th.

Embecta Price Performance

Embecta stock opened at $5.25 on Wednesday. The firm has a 50 day simple moving average of $3.98 and a 200-day simple moving average of $5.92. The stock has a market cap of $297.46 million, a price-to-earnings ratio of 3.55 and a beta of 0.86. Embecta has a 1-year low of $2.77 and a 1-year high of $15.55.

Embecta (NASDAQ:EMBC) last released its quarterly earnings results on Friday, August 7th. The company reported $0.56 EPS for the quarter, beating the consensus estimate of $0.27 by $0.29. Embecta had a net margin of 8.59% and a negative return on equity of 19.25%. The firm had revenue of $271.70 million for the quarter, compared to analyst estimates of $254.53 million. During the same quarter in the previous year, the company earned $1.12 EPS. The business’s revenue for the quarter was down 8.1% compared to the same quarter last year. Embecta has set its FY 2026 guidance at 1.800-1.900 EPS. Equities analysts expect that Embecta will post 1.84 earnings per share for the current fiscal year.

Embecta Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Thursday, August 27th will be given a dividend of $0.01 per share. The ex-dividend date is Thursday, August 27th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.8%. Embecta’s dividend payout ratio (DPR) is currently 2.70%.

Insider Activity

In related news, insider Jeffrey Z. Mann acquired 20,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was purchased at an average price of $4.99 per share, with a total value of $99,800.00. Following the transaction, the insider owned 262,915 shares of the company’s stock, valued at approximately $1,311,945.85. This trade represents a 8.23% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Devdatt Kurdikar bought 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The stock was bought at an average price of $4.70 per share, with a total value of $141,000.00. Following the acquisition, the chief executive officer directly owned 804,919 shares in the company, valued at $3,783,119.30. The trade was a 3.87% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders have purchased 70,000 shares of company stock valued at $334,200. Company insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Walleye Capital LLC purchased a new position in shares of Embecta during the first quarter worth $7,013,000. SG Americas Securities LLC raised its holdings in shares of Embecta by 138.4% in the 1st quarter. SG Americas Securities LLC now owns 1,038,948 shares of the company’s stock valued at $9,184,000 after buying an additional 603,106 shares during the period. Ameriprise Financial Inc. lifted its stake in Embecta by 439.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 709,849 shares of the company’s stock worth $6,878,000 after acquiring an additional 578,174 shares in the last quarter. Jefferies Financial Group Inc. lifted its stake in Embecta by 24.9% during the 4th quarter. Jefferies Financial Group Inc. now owns 2,354,971 shares of the company’s stock worth $27,977,000 after acquiring an additional 470,096 shares in the last quarter. Finally, UBS Group AG boosted its holdings in Embecta by 200.8% during the 4th quarter. UBS Group AG now owns 630,994 shares of the company’s stock valued at $7,496,000 after acquiring an additional 421,254 shares during the period. 93.83% of the stock is currently owned by institutional investors and hedge funds.

Embecta Company Profile

Embecta Corp (NASDAQ: EMBC) is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.