Embecta (NASDAQ:EMBC) Shares Gap Down – Here’s Why

Shares of Embecta Corp. (NASDAQ:EMBC) gapped down before the market opened on Thursday . The stock had previously closed at $18.20, but opened at $17.24. Embecta shares last traded at $17.87, with a volume of 39,838 shares changing hands.

Analyst Ratings Changes

Several brokerages have recently commented on EMBC. Morgan Stanley upgraded shares of Embecta from an “underweight” rating to an “equal weight” rating and upped their price objective for the stock from $13.00 to $20.00 in a report on Monday, December 2nd. BTIG Research upgraded Embecta from a “neutral” rating to a “buy” rating and set a $26.00 price target on the stock in a research report on Wednesday, November 27th.

Embecta Price Performance

The stock has a market capitalization of $1.01 billion, a P/E ratio of 12.91, a price-to-earnings-growth ratio of 0.97 and a beta of 1.20. The company has a fifty day moving average of $19.70 and a two-hundred day moving average of $16.52.

Embecta (NASDAQ:EMBC) last issued its earnings results on Thursday, February 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.20. Embecta had a net margin of 6.97% and a negative return on equity of 18.54%. As a group, equities research analysts predict that Embecta Corp. will post 2.84 EPS for the current fiscal year.

Embecta Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 18th. Shareholders of record on Friday, December 6th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 3.44%. The ex-dividend date was Friday, December 6th. Embecta’s payout ratio is currently 44.44%.

Institutional Trading of Embecta

Several large investors have recently added to or reduced their stakes in the company. Smartleaf Asset Management LLC grew its stake in Embecta by 175.1% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,216 shares of the company’s stock valued at $25,000 after purchasing an additional 774 shares in the last quarter. CWM LLC grew its position in Embecta by 11.3% in the third quarter. CWM LLC now owns 10,102 shares of the company’s stock worth $142,000 after acquiring an additional 1,023 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Embecta by 4.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 22,212 shares of the company’s stock worth $278,000 after purchasing an additional 1,025 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Embecta by 1.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 145,269 shares of the company’s stock valued at $2,048,000 after purchasing an additional 1,600 shares in the last quarter. Finally, Natixis Advisors LLC boosted its holdings in Embecta by 5.7% in the third quarter. Natixis Advisors LLC now owns 30,735 shares of the company’s stock worth $433,000 after purchasing an additional 1,648 shares in the last quarter. 93.83% of the stock is owned by institutional investors and hedge funds.

Embecta Company Profile

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes.