Zacks Investment Research Downgrades Alkermes (NASDAQ:ALKS) to Hold

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Zacks Investment Research cut shares of Alkermes (NASDAQ:ALKS) from a buy rating to a hold rating in a research note published on Friday, Zacks.com reports. The brokerage currently has $26.00 price objective on the stock.

According to Zacks, “Alkermes posted narrower-than-expected loss and sales beat estimates in the first quarter of 2019. With the increasing traction of Aristada in the market, the company continues to emerge as a leader in the treatment of schizophrenia. This year will be an important one for the company’s late-stage pipeline, highlighted by the planned submission of the NDA for ALKS 3831 and the regulatory review of the recently submitted NDA for diroximel fumarate for multiple sclerosis, with action expected in the fourth quarter. The company also expects to release data from ALKS 4230's anti-tumor response study in 2019. However, Alkermes is highly dependent on manufacturing and/or royalty revenues from partners, which is a concern. Shares have underperformed the industry year to date. Alkermes has a positive record of earnings surprises in recent quarters.”

Several other equities analysts have also recently commented on the stock. TheStreet cut shares of Trinseo from a b- rating to a c+ rating in a research note on Friday, May 17th. BidaskClub upgraded shares of Zillow Group from a buy rating to a strong-buy rating in a research note on Tuesday, July 2nd. ValuEngine cut shares of Zosano Pharma from a buy rating to a hold rating in a research note on Wednesday, May 1st. Credit Suisse Group set a $123.00 target price on shares of Hershey and gave the company a hold rating in a research note on Friday, April 26th. Finally, Citigroup upped their target price on shares of Martin Marietta Materials from $239.00 to $255.00 and gave the company a buy rating in a research note on Wednesday, May 1st. Three analysts have rated the stock with a sell rating, nine have given a hold rating and three have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average target price of $36.09.

NASDAQ ALKS opened at $22.83 on Friday. The company has a current ratio of 2.94, a quick ratio of 2.65 and a debt-to-equity ratio of 0.25. The business’s fifty day moving average price is $22.67. The company has a market cap of $3.68 billion, a P/E ratio of -326.14 and a beta of 1.83. Alkermes has a 1 year low of $21.29 and a 1 year high of $46.98.

Alkermes (NASDAQ:ALKS) last released its earnings results on Thursday, April 25th. The company reported ($0.33) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.39) by $0.06. The firm had revenue of $223.10 million during the quarter, compared to analysts’ expectations of $218.84 million. Alkermes had a negative net margin of 15.86% and a negative return on equity of 2.08%. The business’s quarterly revenue was down .9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.09) EPS. As a group, sell-side analysts anticipate that Alkermes will post -0.34 earnings per share for the current fiscal year.

In other news, Director Richard F. Pops sold 110,000 shares of the stock in a transaction on Thursday, May 23rd. The shares were sold at an average price of $24.88, for a total value of $2,736,800.00. Following the completion of the transaction, the director now owns 776,433 shares in the company, valued at approximately $19,317,653.04. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Richard F. Pops sold 60,000 shares of the stock in a transaction on Thursday, May 16th. The shares were sold at an average price of $25.42, for a total transaction of $1,525,200.00. Following the completion of the transaction, the chief executive officer now owns 776,433 shares of the company’s stock, valued at approximately $19,736,926.86. The disclosure for this sale can be found here. In the last 90 days, insiders sold 195,373 shares of company stock valued at $4,905,080. Corporate insiders own 4.71% of the company’s stock.

Hedge funds have recently made changes to their positions in the company. Nicollet Investment Management Inc. grew its holdings in shares of Alkermes by 2.1% in the 1st quarter. Nicollet Investment Management Inc. now owns 28,020 shares of the company’s stock worth $1,022,000 after purchasing an additional 565 shares during the last quarter. Nissay Asset Management Corp Japan ADV grew its holdings in shares of Alkermes by 4.7% in the 1st quarter. Nissay Asset Management Corp Japan ADV now owns 13,531 shares of the company’s stock worth $494,000 after purchasing an additional 607 shares during the last quarter. CIBC Asset Management Inc grew its holdings in shares of Alkermes by 12.2% in the 1st quarter. CIBC Asset Management Inc now owns 8,382 shares of the company’s stock worth $306,000 after purchasing an additional 910 shares during the last quarter. NumerixS Investment Technologies Inc grew its holdings in shares of Alkermes by 15.5% in the 1st quarter. NumerixS Investment Technologies Inc now owns 8,910 shares of the company’s stock worth $318,000 after purchasing an additional 1,198 shares during the last quarter. Finally, California State Teachers Retirement System grew its holdings in shares of Alkermes by 0.5% in the 1st quarter. California State Teachers Retirement System now owns 250,761 shares of the company’s stock worth $9,150,000 after purchasing an additional 1,236 shares during the last quarter. Institutional investors own 97.37% of the company’s stock.

About Alkermes

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in various therapeutic areas in the United States, Ireland, and internationally. The company's marketed products include ARISTADA (aripiprazole lauroxil), an extended-release intramuscular injectable suspension for the treatment of schizophrenia; VIVITROL (naltrexone for extended-release injectable suspension) for the treatment of alcohol and opioid dependence; RISPERDAL CONSTA for the treatment of schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia and schizoaffective disorder; XEPLION, INVEGA TRINZA, and TREVICTA for treating schizophrenia; and AMPYRA (dalfampridine)/FAMPYRA (fampridine) to enhance walking in adults with multiple sclerosis (MS) who have walking disability.

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