Zacks Investment Research Lowers Sucampo Pharmaceuticals (SCMP) to Hold
Zacks Investment Research cut shares of Sucampo Pharmaceuticals (NASDAQ:SCMP) from a buy rating to a hold rating in a report issued on Friday.
According to Zacks, “Sucampo’s pending acquisition by Mallinckrodt for $1.2 billion have raised investor concerns that the latter may be underpaying for the company. A sNDA for label expansion of Amitizia in pediatric functional constipation is under review. Also, Sucampo’s collaborations with firms like Takeda and Mylan for Amitiza’s commercialization is a big positive. Moreover, the Vtesse acquisition added a pivotal program in Niemann-Pick Disease type C1 to its pipeline. However, Sucampo’s dependence on Amitiza for growth is concerning with few companies trying to market and sell generic version of Amitiza. Moreover, Sucampo discontinued Amitzia’s sprinkle formulation development as it did not meet bioequivalence with capsule formulation. Shares of the company have outperformed the industry. Estimates have remained stable ahead of the Q4 earnings results. The company has a mixed record of earnings surprises in recent quarters.”
A number of other equities research analysts have also recently weighed in on the stock. ValuEngine raised shares of Sucampo Pharmaceuticals from a buy rating to a strong-buy rating in a research report on Friday, February 2nd. Nomura reaffirmed a neutral rating and issued a $18.00 target price on shares of Sucampo Pharmaceuticals in a report on Friday, January 26th. UBS Group cut shares of Sucampo Pharmaceuticals from a buy rating to a neutral rating and set a $18.00 target price for the company. in a report on Friday, January 5th. Mizuho reaffirmed a neutral rating and issued a $18.00 target price (up from $14.00) on shares of Sucampo Pharmaceuticals in a report on Wednesday, January 3rd. Finally, Leerink Swann reaffirmed a market perform rating and issued a $15.00 target price on shares of Sucampo Pharmaceuticals in a report on Tuesday, January 2nd. Eight analysts have rated the stock with a hold rating, four have issued a buy rating and two have given a strong buy rating to the company’s stock. The stock has a consensus rating of Buy and an average target price of $20.25.
Sucampo Pharmaceuticals (NASDAQ:SCMP) last announced its quarterly earnings results on Wednesday, November 1st. The biopharmaceutical company reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.25 by $0.02. Sucampo Pharmaceuticals had a negative net margin of 60.24% and a positive return on equity of 74.58%. The firm had revenue of $61.27 million during the quarter, compared to analysts’ expectations of $58.05 million. During the same period in the previous year, the company earned $0.30 earnings per share. Sucampo Pharmaceuticals’s quarterly revenue was up 5.9% compared to the same quarter last year. analysts anticipate that Sucampo Pharmaceuticals will post 1.12 EPS for the current year.
In other news, insider Peter A. Kiener sold 50,000 shares of the company’s stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $16.50, for a total value of $825,000.00. Following the completion of the sale, the insider now directly owns 52,023 shares of the company’s stock, valued at $858,379.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 4.13% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the company. Point72 Asset Management L.P. purchased a new position in Sucampo Pharmaceuticals during the third quarter worth about $21,989,000. Vanguard Group Inc. raised its holdings in Sucampo Pharmaceuticals by 13.0% during the second quarter. Vanguard Group Inc. now owns 1,646,348 shares of the biopharmaceutical company’s stock worth $17,287,000 after purchasing an additional 189,561 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Sucampo Pharmaceuticals by 1.0% during the second quarter. Dimensional Fund Advisors LP now owns 1,570,172 shares of the biopharmaceutical company’s stock worth $16,487,000 after purchasing an additional 15,528 shares in the last quarter. Alpine Associates Management Inc. purchased a new position in Sucampo Pharmaceuticals during the fourth quarter worth about $26,845,000. Finally, Royce & Associates LP raised its holdings in Sucampo Pharmaceuticals by 9.7% during the third quarter. Royce & Associates LP now owns 1,171,731 shares of the biopharmaceutical company’s stock worth $13,826,000 after purchasing an additional 103,808 shares in the last quarter. 65.16% of the stock is owned by institutional investors and hedge funds.
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About Sucampo Pharmaceuticals
Sucampo Pharmaceuticals, Inc is a biopharmaceutical company. The Company is focused on the development and commercialization of pharmaceutical products. Its primary focus areas are gastroenterology, ophthalmology and oncology-related disorders. Its product candidates include VTS-270, Lubiprostone (AMITIZA), Unoprostone is opropyl (RESCULA) and CPP-1X/sulindac combination product.
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