Akorn (NASDAQ:AKRX) Rating Lowered to Hold at Zacks Investment Research

Akorn (NASDAQ:AKRX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday, Zacks.com reports.

According to Zacks, “Akorn, Inc. is a specialty generic pharmaceutical company engaged in the development, manufacture and marketing of multisource and branded pharmaceuticals. They specialize in difficult-to-manufacture sterile and non-sterile dosage forms including: ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays. Akorn markets its products to retail pharmacies, ophthalmologists, optometrists, physicians, veterinarians, hospitals, clinics, wholesalers, distributors, group purchasing organizations, and government agencies. Their strategy is focused on continuing to strengthen our leadership position in the development and marketing of specialized generic and branded pharmaceuticals, over-the-counter (OTC) drug products and animal health products. “

Other analysts have also recently issued reports about the company. Royal Bank of Canada set a $5.00 price objective on Akorn and gave the company a “hold” rating in a research note on Monday, August 12th. BidaskClub upgraded Akorn from a “sell” rating to a “hold” rating in a research note on Friday. SunTrust Banks increased their price objective on Akorn from $3.50 to $4.00 and gave the company a “hold” rating in a research note on Friday, September 20th. Finally, ValuEngine upgraded Akorn from a “hold” rating to a “buy” rating in a research note on Monday, October 7th. Four investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $6.55.

NASDAQ:AKRX opened at $4.61 on Friday. The company has a quick ratio of 0.36, a current ratio of 0.52 and a debt-to-equity ratio of 0.08. The stock’s fifty day moving average is $3.62 and its two-hundred day moving average is $3.73. Akorn has a 52 week low of $2.34 and a 52 week high of $7.52. The stock has a market capitalization of $591.50 million, a price-to-earnings ratio of -12.81 and a beta of 1.95.

Akorn (NASDAQ:AKRX) last announced its quarterly earnings data on Thursday, August 1st. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.11) by $0.09. The business had revenue of $178.00 million for the quarter, compared to analysts’ expectations of $171.97 million. Akorn had a negative return on equity of 17.88% and a negative net margin of 72.25%. Akorn’s revenue was down 6.8% on a year-over-year basis. On average, sell-side analysts expect that Akorn will post -0.35 EPS for the current fiscal year.

In related news, Director Steven J. Meyer acquired 20,000 shares of Akorn stock in a transaction dated Wednesday, August 14th. The shares were acquired at an average cost of $2.60 per share, for a total transaction of $52,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 3.90% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Nisa Investment Advisors LLC increased its holdings in Akorn by 1,159.8% in the third quarter. Nisa Investment Advisors LLC now owns 31,495 shares of the company’s stock valued at $120,000 after buying an additional 28,995 shares during the last quarter. CIBC Private Wealth Group LLC purchased a new position in Akorn in the third quarter valued at $40,000. State of Alaska Department of Revenue increased its holdings in Akorn by 127.0% in the third quarter. State of Alaska Department of Revenue now owns 72,937 shares of the company’s stock valued at $277,000 after buying an additional 40,807 shares during the last quarter. Royal Bank of Canada increased its holdings in Akorn by 158.9% in the second quarter. Royal Bank of Canada now owns 51,694 shares of the company’s stock valued at $267,000 after buying an additional 31,728 shares during the last quarter. Finally, Nuveen Asset Management LLC purchased a new position in Akorn in the second quarter valued at $10,948,000. Institutional investors and hedge funds own 68.21% of the company’s stock.

Akorn Company Profile

Akorn, Inc, a specialty generic pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. The company operates in two segments, Prescription Pharmaceuticals and Consumer Health.

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