Embecta Corp. (NASDAQ:EMBC) Receives Consensus Rating of “Strong Sell” from Brokerages

Shares of Embecta Corp. (NASDAQ:EMBC) have earned a consensus recommendation of “Strong Sell” from the five analysts that are covering the company, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation and two have given a hold recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $11.00.

Several research firms have recently weighed in on EMBC. BTIG Research lowered shares of Embecta from a “buy” rating to a “neutral” rating in a research note on Tuesday, May 5th. Weiss Ratings cut shares of Embecta from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, May 6th. Bank of America decreased their price target on shares of Embecta from $11.00 to $3.00 and set an “underperform” rating for the company in a research report on Monday. Zacks Research lowered shares of Embecta from a “hold” rating to a “strong sell” rating in a research note on Friday, May 8th. Finally, Mizuho dropped their price target on shares of Embecta from $12.00 to $5.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th.

Embecta Stock Down 3.8%

EMBC stock traded down $0.12 during midday trading on Monday, reaching $3.02. The company’s stock had a trading volume of 1,986,623 shares, compared to its average volume of 1,334,032. Embecta has a 52 week low of $2.99 and a 52 week high of $15.55. The stock has a market cap of $179.18 million, a PE ratio of 1.59 and a beta of 1.09. The business’s 50-day simple moving average is $8.04 and its 200-day simple moving average is $10.60.

Embecta (NASDAQ:EMBC) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.15). Embecta had a negative return on equity of 23.96% and a net margin of 10.73%.The company had revenue of $221.80 million for the quarter, compared to analyst estimates of $235.67 million. During the same quarter in the previous year, the business earned $0.70 earnings per share. The company’s revenue was down 14.4% on a year-over-year basis. Embecta has set its FY 2026 guidance at 1.550-1.75 EPS. As a group, equities analysts forecast that Embecta will post 1.58 earnings per share for the current fiscal year.

Embecta Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Thursday, May 28th will be given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Thursday, May 28th. Embecta’s dividend payout ratio (DPR) is 31.58%.

Hedge Funds Weigh In On Embecta

A number of large investors have recently modified their holdings of EMBC. Royal Bank of Canada boosted its position in shares of Embecta by 38.3% in the first quarter. Royal Bank of Canada now owns 18,201 shares of the company’s stock valued at $232,000 after acquiring an additional 5,036 shares during the period. AQR Capital Management LLC lifted its position in Embecta by 3.7% during the first quarter. AQR Capital Management LLC now owns 225,641 shares of the company’s stock valued at $2,738,000 after purchasing an additional 8,109 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Embecta by 2.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company’s stock valued at $629,000 after purchasing an additional 1,159 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Embecta by 4.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,173 shares of the company’s stock valued at $2,195,000 after purchasing an additional 7,894 shares during the last quarter. Finally, Jane Street Group LLC raised its stake in shares of Embecta by 224.0% during the first quarter. Jane Street Group LLC now owns 132,688 shares of the company’s stock worth $1,692,000 after acquiring an additional 91,729 shares in the last quarter. 93.83% of the stock is currently owned by institutional investors.

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.