Embecta (NASDAQ:EMBC) Trading Down 5% – Should You Sell?

Embecta Corp. (NASDAQ:EMBC) was down 5% during mid-day trading on Monday . The company traded as low as $10.10 and last traded at $10.3160. Approximately 123,935 shares traded hands during trading, a decline of 81% from the average daily volume of 643,474 shares. The stock had previously closed at $10.86.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Embecta in a report on Wednesday, January 21st. Wall Street Zen cut Embecta from a “strong-buy” rating to a “buy” rating in a report on Saturday. Finally, BTIG Research reiterated a “buy” rating and set a $25.00 price target on shares of Embecta in a research report on Friday. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $18.50.

Embecta Stock Down 5.2%

The company’s fifty day moving average price is $11.76 and its two-hundred day moving average price is $12.98. The company has a market cap of $609.97 million, a price-to-earnings ratio of 4.35 and a beta of 1.11.

Embecta (NASDAQ:EMBC) last announced its earnings results on Thursday, February 5th. The company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.67 by $0.04. Embecta had a net margin of 12.92% and a negative return on equity of 26.66%. The business had revenue of $261.20 million during the quarter, compared to analysts’ expectations of $258.07 million. During the same quarter in the prior year, the company posted $0.65 earnings per share. The firm’s revenue was down .3% on a year-over-year basis. Embecta has set its FY 2026 guidance at 2.800-3.00 EPS. On average, equities research analysts predict that Embecta Corp. will post 2.85 earnings per share for the current fiscal year.

Embecta Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Friday, February 27th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date is Friday, February 27th. Embecta’s payout ratio is currently 25.32%.

Institutional Investors Weigh In On Embecta

A number of institutional investors have recently modified their holdings of the business. American Century Companies Inc. grew its position in Embecta by 36.3% in the second quarter. American Century Companies Inc. now owns 5,195,948 shares of the company’s stock valued at $50,349,000 after acquiring an additional 1,382,537 shares during the last quarter. River Road Asset Management LLC grew its holdings in shares of Embecta by 0.4% during the 2nd quarter. River Road Asset Management LLC now owns 3,240,243 shares of the company’s stock valued at $32,921,000 after purchasing an additional 12,352 shares during the last quarter. Yacktman Asset Management LP increased its position in Embecta by 0.7% during the 2nd quarter. Yacktman Asset Management LP now owns 2,373,386 shares of the company’s stock worth $22,998,000 after purchasing an additional 16,069 shares in the last quarter. Jefferies Financial Group Inc. lifted its stake in Embecta by 24.9% in the 4th quarter. Jefferies Financial Group Inc. now owns 2,354,971 shares of the company’s stock valued at $27,977,000 after purchasing an additional 470,096 shares during the last quarter. Finally, William Blair Investment Management LLC boosted its position in Embecta by 0.7% in the second quarter. William Blair Investment Management LLC now owns 1,992,604 shares of the company’s stock valued at $19,308,000 after buying an additional 14,232 shares in the last quarter. Institutional investors own 93.83% of the company’s stock.

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.