Lannett Company, Inc. (NYSE:LCI) Sees Significant Decline in Short Interest

Lannett Company, Inc. (NYSE:LCI) was the recipient of a large decline in short interest in the month of September. As of September 15th, there was short interest totalling 14,960,000 shares, a decline of 11.6% from the August 15th total of 16,930,000 shares. Based on an average daily trading volume, of 2,140,000 shares, the days-to-cover ratio is currently 7.0 days. Approximately 47.6% of the shares of the company are short sold.

In other news, Director Albert Paonessa III sold 11,582 shares of the company’s stock in a transaction dated Friday, September 6th. The shares were sold at an average price of $10.30, for a total value of $119,294.60. Following the sale, the director now owns 62,140 shares of the company’s stock, valued at approximately $640,042. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Patrick G. Lepore bought 25,000 shares of the stock in a transaction dated Tuesday, September 3rd. The stock was purchased at an average cost of $9.82 per share, for a total transaction of $245,500.00. Following the acquisition, the director now owns 201,340 shares in the company, valued at approximately $1,977,158.80. The disclosure for this purchase can be found here. Insiders own 12.57% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. lifted its position in Lannett by 4.6% during the 2nd quarter. BlackRock Inc. now owns 5,020,124 shares of the company’s stock worth $30,421,000 after buying an additional 218,778 shares in the last quarter. D. E. Shaw & Co. Inc. lifted its position in Lannett by 10.9% during the 2nd quarter. D. E. Shaw & Co. Inc. now owns 3,451,212 shares of the company’s stock worth $20,914,000 after buying an additional 339,593 shares in the last quarter. Vanguard Group Inc. lifted its position in Lannett by 33.7% during the 2nd quarter. Vanguard Group Inc. now owns 2,689,687 shares of the company’s stock worth $16,300,000 after buying an additional 678,248 shares in the last quarter. JPMorgan Chase & Co. lifted its position in Lannett by 274.4% during the 1st quarter. JPMorgan Chase & Co. now owns 2,528,926 shares of the company’s stock worth $19,903,000 after buying an additional 1,853,436 shares in the last quarter. Finally, Morgan Stanley lifted its position in Lannett by 19.0% during the 2nd quarter. Morgan Stanley now owns 859,597 shares of the company’s stock worth $5,210,000 after buying an additional 137,101 shares in the last quarter. Institutional investors and hedge funds own 98.46% of the company’s stock.

Shares of LCI traded up $0.20 during trading hours on Monday, hitting $11.28. The stock had a trading volume of 46,442 shares, compared to its average volume of 3,308,744. The company’s fifty day moving average is $10.01 and its two-hundred day moving average is $7.50. The company has a debt-to-equity ratio of 1.98, a current ratio of 2.67 and a quick ratio of 1.86. Lannett has a 52 week low of $3.33 and a 52 week high of $15.52. The stock has a market capitalization of $448.10 million, a price-to-earnings ratio of 4.79 and a beta of 2.19.

Lannett (NYSE:LCI) last posted its earnings results on Tuesday, August 27th. The company reported $0.37 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.21 by $0.16. Lannett had a negative net margin of 41.52% and a positive return on equity of 28.00%. The business had revenue of $133.80 million for the quarter, compared to analyst estimates of $120.28 million. During the same quarter in the prior year, the firm earned $0.64 EPS. The firm’s quarterly revenue was down 21.7% compared to the same quarter last year. Equities analysts predict that Lannett will post 1.25 EPS for the current fiscal year.

Several equities research analysts have recently weighed in on LCI shares. Roth Capital reaffirmed a “neutral” rating on shares of Lannett in a report on Wednesday, August 28th. ValuEngine raised shares of Lannett from a “sell” rating to a “hold” rating in a report on Tuesday, July 2nd. Zacks Investment Research raised shares of Lannett from a “hold” rating to a “strong-buy” rating and set a $9.25 target price on the stock in a report on Friday, August 30th. Finally, SunTrust Banks upped their target price on shares of Lannett from $10.00 to $14.00 and gave the stock a “hold” rating in a report on Wednesday, September 18th. Four investment analysts have rated the stock with a hold rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $11.63.

About Lannett

Lannett Company, Inc develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States. The company offers solid oral and extended release, topical, liquid, nasal, and oral solution finished dosage forms of drugs that address a range of therapeutic areas, as well as ophthalmic, patch, foam, buccal, sublingual, suspension, soft gel, and injectable dosages.

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