Sanofi (SNY) Downgraded by Zacks Investment Research

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

According to Zacks, “Sanofi’s Diabetes franchise is under significant pressure with key product, Lantus facing increasing competitive pressure at the payor level and the presence of biosimilar competition in several European markets and Japan. The declining trends in the diabetes franchise are expected to continue in 2018.  Performance of the Vaccines and Consumer Healthcare franchises has been soft lately. Moreover, Sanofi’s shares have underperformed the industry this year so far. Other headwinds include generic competition and slower-than-expected uptake of new products like Praluent. However, Sanofi's focus on streamlining its business and pursuing business development deals is encouraging. Further, the acquisitions of Ablynx and Bioverativ have strengthened Sanofi’s position in the rare blood disorders market. Estimates have gone down ahead of Q2 earnings release. Sanofi has a mixed record of earnings surprises in recent quarters.”

SNY has been the topic of several other reports. Citigroup upgraded shares of Sanofi from a “neutral” rating to a “buy” rating in a report on Friday, August 10th. Bank of America upgraded shares of Sanofi from a “neutral” rating to a “buy” rating and set a $55.00 price objective on the stock in a report on Monday, September 10th. Deutsche Bank reaffirmed a “buy” rating on shares of Sanofi in a research report on Wednesday, August 1st. BNP Paribas raised Sanofi from a “neutral” rating to an “outperform” rating in a research report on Wednesday, August 1st. Finally, Argus lifted their target price on Sanofi from $46.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, August 24th. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $49.00.

SNY traded up $0.68 on Tuesday, hitting $44.11. The company had a trading volume of 66,267 shares, compared to its average volume of 1,892,081. The firm has a market cap of $112.04 billion, a P/E ratio of 14.10, a price-to-earnings-growth ratio of 2.40 and a beta of 0.82. Sanofi has a 1 year low of $37.43 and a 1 year high of $50.04. The company has a current ratio of 1.22, a quick ratio of 0.85 and a debt-to-equity ratio of 0.40.

Sanofi (NYSE:SNY) last issued its quarterly earnings data on Tuesday, July 31st. The company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.02. The firm had revenue of $8.18 billion for the quarter, compared to analyst estimates of $8.27 billion. Sanofi had a net margin of 10.29% and a return on equity of 23.77%. Sanofi’s revenue was down 5.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.35 EPS. Equities research analysts forecast that Sanofi will post 3.14 earnings per share for the current year.

In other Sanofi news, major shareholder Sanofi sold 104,552 shares of Sanofi stock in a transaction dated Thursday, September 6th. The stock was sold at an average price of $406.68, for a total value of $42,519,207.36. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 1.00% of the company’s stock.

Institutional investors have recently made changes to their positions in the company. Private Capital Group LLC grew its position in shares of Sanofi by 271.3% during the first quarter. Private Capital Group LLC now owns 2,577 shares of the company’s stock worth $103,000 after buying an additional 1,883 shares in the last quarter. Squar Milner Financial Services LLC acquired a new position in Sanofi in the second quarter valued at approximately $169,000. New England Research & Management Inc. acquired a new position in Sanofi in the third quarter valued at approximately $205,000. We Are One Seven LLC acquired a new position in Sanofi in the third quarter valued at approximately $227,000. Finally, Natixis acquired a new position in Sanofi in the second quarter valued at approximately $213,000. 7.54% of the stock is owned by institutional investors and hedge funds.

About Sanofi

Sanofi provides therapeutic solutions. It offers Cerezyme and Cerdelga for Gaucher disease, Myozyme and Lumizyme for Pompe disease, Fabrazyme for Fabry disease, and Aldurazyme for mucopolysaccharidosis Type 1; Aubagio, an oral immunomodulatory; and Lemtrada, a monoclonal antibody to treat multiple sclerosis.

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