Zacks Investment Research Downgrades Koninklijke Philips (PHG) to Sell

Zacks Investment Research downgraded shares of Koninklijke Philips (NYSE:PHG) from a strong-buy rating to a sell rating in a research report report published on Monday morning.

According to Zacks, “Philips is gradually evolving as a healthcare company, having augmented its presence in the domain, primarily driven by an expanding portfolio. This is driving share price momentum that has outperformed the industry on a year-to-date basis. However, the company is under scrutiny from the FDA concerning a defibrillators dispute, which is expected to hurt profitability. Moreover, sluggish United Kingdom market is a concern. The company is set to close its only UK factory in 2020. Additionally, trade related tariffs are expected to have a negative net impact of €55 million on EBITA in 2019.”

Shares of PHG stock opened at $40.36 on Monday. The firm has a market capitalization of $36.83 billion, a price-to-earnings ratio of 19.40, a price-to-earnings-growth ratio of 1.44 and a beta of 1.24. Koninklijke Philips has a fifty-two week low of $32.98 and a fifty-two week high of $46.67. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.87 and a current ratio of 1.21.



Koninklijke Philips (NYSE:PHG) last issued its earnings results on Tuesday, January 29th. The technology company reported $0.87 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.80 by $0.07. The firm had revenue of $5.59 billion for the quarter, compared to the consensus estimate of $5.52 billion. Koninklijke Philips had a return on equity of 11.17% and a net margin of 5.91%. The company’s revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.69 EPS. On average, analysts forecast that Koninklijke Philips will post 1.93 earnings per share for the current year.

Several hedge funds have recently modified their holdings of PHG. Schafer Cullen Capital Management Inc boosted its holdings in shares of Koninklijke Philips by 1.8% during the 4th quarter. Schafer Cullen Capital Management Inc now owns 20,084 shares of the technology company’s stock valued at $705,000 after acquiring an additional 363 shares in the last quarter. Creative Planning boosted its holdings in shares of Koninklijke Philips by 7.9% during the 4th quarter. Creative Planning now owns 6,237 shares of the technology company’s stock valued at $219,000 after acquiring an additional 458 shares in the last quarter. Cambridge Investment Research Advisors Inc. boosted its holdings in shares of Koninklijke Philips by 9.9% during the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 6,007 shares of the technology company’s stock valued at $211,000 after acquiring an additional 541 shares in the last quarter. Comerica Securities Inc. boosted its holdings in shares of Koninklijke Philips by 10.4% during the 4th quarter. Comerica Securities Inc. now owns 7,280 shares of the technology company’s stock valued at $256,000 after acquiring an additional 686 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in shares of Koninklijke Philips by 4.0% during the 4th quarter. Bank of New York Mellon Corp now owns 19,857 shares of the technology company’s stock valued at $698,000 after acquiring an additional 772 shares in the last quarter. 4.22% of the stock is currently owned by hedge funds and other institutional investors.

Koninklijke Philips Company Profile

Koninklijke Philips N.V. operates as a health technology company worldwide. It operates through Diagnosis & Treatment, Connected Care & Health Informatics, and Personal Health segments. The company offers mother, child care, and oral healthcare products; male grooming and beauty products; food preparation and home care products; and sleep and respiratory care.

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