Zacks Investment Research Downgrades The Medicines (MDCO) to Hold
The Medicines (NASDAQ:MDCO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday.
According to Zacks, “The Medicines Co. has a blockbuster candidate, Inclisiran, in its pipeline. We also await a clearer picture of the commercial potential of Inclisiran, if approved. Moreover, The Medicines Co. has undertaken restructuring program to boost shareholder value. We are also encouraged by the company’s regular divesture of non-core products. This would help the company to optimize its capital structure and enhance its liquidity position. However, with Angiomax sales eroding due to presence of generics, the company’s ability to successfully develop and bring new products to the market is important for growth. Any regulatory setbacks would weigh heavily on the stock. The company’s shares have underperformed the industry in the last one year. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has negative record of earnings surprises in recent quarters.”
MDCO has been the subject of several other reports. Guggenheim initiated coverage on shares of The Medicines in a research note on Monday, October 23rd. They set a “buy” rating and a $45.00 price objective for the company. Oppenheimer set a $50.00 price objective on shares of The Medicines and gave the stock a “buy” rating in a research note on Monday, January 15th. ValuEngine raised shares of The Medicines from a “sell” rating to a “hold” rating in a research note on Friday, December 1st. Chardan Capital reaffirmed a “buy” rating and set a $85.00 price objective on shares of The Medicines in a research note on Wednesday, January 24th. Finally, JPMorgan Chase & Co. reaffirmed an “overweight” rating and set a $45.00 price objective on shares of The Medicines in a research note on Wednesday, January 24th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and nine have given a buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $51.40.
In other news, CEO Clive Meanwell sold 136,250 shares of The Medicines stock in a transaction on Friday, December 15th. The stock was sold at an average price of $27.24, for a total transaction of $3,711,450.00. Following the completion of the sale, the chief executive officer now directly owns 587,652 shares in the company, valued at $16,007,640.48. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Alexander J. Denner bought 170,000 shares of the firm’s stock in a transaction dated Wednesday, November 29th. The shares were acquired at an average price of $30.03 per share, with a total value of $5,105,100.00. Following the completion of the transaction, the director now owns 6,663 shares of the company’s stock, valued at approximately $200,089.89. The disclosure for this purchase can be found here. 8.22% of the stock is currently owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in MDCO. Westfield Capital Management Co. LP raised its holdings in shares of The Medicines by 21.9% in the third quarter. Westfield Capital Management Co. LP now owns 2,476,778 shares of the company’s stock valued at $91,740,000 after acquiring an additional 445,419 shares in the last quarter. Pictet Asset Management Ltd. bought a new stake in shares of The Medicines in the third quarter valued at about $15,819,000. Iridian Asset Management LLC CT raised its holdings in shares of The Medicines by 23.2% in the fourth quarter. Iridian Asset Management LLC CT now owns 2,170,215 shares of the company’s stock valued at $59,334,000 after acquiring an additional 408,177 shares in the last quarter. Macquarie Group Ltd. raised its holdings in shares of The Medicines by 44.4% in the second quarter. Macquarie Group Ltd. now owns 873,182 shares of the company’s stock valued at $33,190,000 after acquiring an additional 268,282 shares in the last quarter. Finally, State Street Corp raised its holdings in shares of The Medicines by 9.0% in the second quarter. State Street Corp now owns 2,220,199 shares of the company’s stock valued at $84,391,000 after acquiring an additional 183,086 shares in the last quarter.
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About The Medicines
The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin).
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