Traders Buy AmerisourceBergen (ABC) on Weakness Following Insider Selling

Investors bought shares of AmerisourceBergen Corp. (NYSE:ABC) on weakness during trading on Tuesday after an insider sold shares in the company. $42.80 million flowed into the stock on the tick-up and $22.92 million flowed out of the stock on the tick-down, for a money net flow of $19.88 million into the stock. Of all companies tracked, AmerisourceBergen had the 15th highest net in-flow for the day. AmerisourceBergen traded down ($0.54) for the day and closed at $76.56Specifically, CEO Steven H. Collis sold 21,350 shares of AmerisourceBergen stock in a transaction on Wednesday, January 2nd. The stock was sold at an average price of $73.96, for a total value of $1,579,046.00. Following the transaction, the chief executive officer now owns 155,929 shares in the company, valued at $11,532,508.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Dale Danilewitz sold 5,703 shares of AmerisourceBergen stock in a transaction on Thursday, February 7th. The shares were sold at an average price of $86.80, for a total value of $495,020.40. Following the completion of the transaction, the insider now owns 8,960 shares in the company, valued at approximately $777,728. The disclosure for this sale can be found here. Insiders sold 110,405 shares of company stock worth $8,977,645 in the last quarter. 27.80% of the stock is owned by insiders.

Several research analysts have commented on the company. ValuEngine lowered AmerisourceBergen from a “hold” rating to a “sell” rating in a research report on Monday, January 7th. UBS Group assumed coverage on AmerisourceBergen in a research report on Thursday, January 17th. They issued a “buy” rating and a $89.00 price objective on the stock. Zacks Investment Research raised AmerisourceBergen from a “sell” rating to a “hold” rating in a research report on Monday, January 7th. Morgan Stanley raised their price objective on AmerisourceBergen from $88.00 to $91.00 and gave the company an “equal weight” rating in a research report on Monday, December 3rd. Finally, Barclays reissued a “hold” rating and issued a $84.00 price objective on shares of AmerisourceBergen in a research report on Sunday, January 6th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the stock. AmerisourceBergen presently has a consensus rating of “Hold” and an average price target of $88.33.

The company has a debt-to-equity ratio of 1.43, a current ratio of 0.94 and a quick ratio of 0.53. The stock has a market cap of $16.30 billion, a P/E ratio of 11.80, a PEG ratio of 1.45 and a beta of 1.13.



AmerisourceBergen (NYSE:ABC) last released its quarterly earnings data on Thursday, January 31st. The company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.50 by $0.10. AmerisourceBergen had a return on equity of 44.53% and a net margin of 0.69%. The company had revenue of $45.39 billion for the quarter, compared to analyst estimates of $43.52 billion. On average, analysts anticipate that AmerisourceBergen Corp. will post 6.75 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Monday, March 4th. Stockholders of record on Tuesday, February 19th were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.09%. The ex-dividend date was Friday, February 15th. AmerisourceBergen’s payout ratio is 24.65%.

Several hedge funds and other institutional investors have recently made changes to their positions in ABC. Oregon Public Employees Retirement Fund increased its position in shares of AmerisourceBergen by 6,614.4% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 3,448,589 shares of the company’s stock worth $46,000 after acquiring an additional 3,397,228 shares during the last quarter. FMR LLC increased its position in shares of AmerisourceBergen by 51.7% during the fourth quarter. FMR LLC now owns 7,263,899 shares of the company’s stock worth $540,434,000 after acquiring an additional 2,474,112 shares during the last quarter. Victory Capital Management Inc. increased its position in shares of AmerisourceBergen by 396.8% during the fourth quarter. Victory Capital Management Inc. now owns 2,406,821 shares of the company’s stock worth $179,068,000 after acquiring an additional 1,922,395 shares during the last quarter. Norges Bank purchased a new stake in shares of AmerisourceBergen during the fourth quarter worth about $103,863,000. Finally, Baupost Group LLC MA increased its position in shares of AmerisourceBergen by 46.8% during the third quarter. Baupost Group LLC MA now owns 2,751,056 shares of the company’s stock worth $253,702,000 after acquiring an additional 877,491 shares during the last quarter. 66.46% of the stock is currently owned by institutional investors and hedge funds.

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About AmerisourceBergen (NYSE:ABC)

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers.

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