Akorn (NASDAQ:AKRX) Rating Increased to Buy at Zacks Investment Research

Akorn (NASDAQ:AKRX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday, Zacks.com reports. The firm presently has a $5.50 price target on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 20.61% from the stock’s previous close.

According to Zacks, “Akorn, Inc. is a specialty generic pharmaceutical company engaged in the development, manufacture and marketing of multisource and branded pharmaceuticals. They specialize in difficult-to-manufacture sterile and non-sterile dosage forms including: ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays. Akorn markets its products to retail pharmacies, ophthalmologists, optometrists, physicians, veterinarians, hospitals, clinics, wholesalers, distributors, group purchasing organizations, and government agencies. Their strategy is focused on continuing to strengthen our leadership position in the development and marketing of specialized generic and branded pharmaceuticals, over-the-counter (OTC) drug products and animal health products. “

Other equities research analysts have also recently issued research reports about the company. BidaskClub upgraded Akorn from a “sell” rating to a “hold” rating in a report on Friday, October 18th. SunTrust Banks boosted their price objective on Akorn from $3.50 to $4.00 and gave the stock a “hold” rating in a report on Friday, September 20th. Royal Bank of Canada set a $5.00 price objective on Akorn and gave the stock a “hold” rating in a report on Monday, August 12th. Finally, ValuEngine upgraded Akorn from a “hold” rating to a “buy” rating in a report on Monday, October 7th. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Akorn currently has a consensus rating of “Buy” and a consensus target price of $6.70.

Shares of NASDAQ:AKRX traded down $0.02 during trading on Wednesday, reaching $4.56. 878,100 shares of the stock were exchanged, compared to its average volume of 2,181,877. Akorn has a 12 month low of $2.34 and a 12 month high of $7.25. The firm has a market cap of $618.11 million, a PE ratio of -12.67 and a beta of 1.96. The stock has a 50-day moving average price of $4.31 and a 200-day moving average price of $3.90. The company has a current ratio of 0.53, a quick ratio of 0.36 and a debt-to-equity ratio of 0.07.

Akorn (NASDAQ:AKRX) last issued its quarterly earnings data on Thursday, October 31st. The company reported $0.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.06. Akorn had a negative return on equity of 19.95% and a negative net margin of 53.62%. The company had revenue of $176.24 million during the quarter, compared to analysts’ expectations of $176.15 million. During the same quarter in the previous year, the company posted ($0.06) earnings per share. The business’s revenue was up 6.4% on a year-over-year basis. On average, sell-side analysts expect that Akorn will post -0.27 earnings per share for the current fiscal year.

In other Akorn news, Director Steven J. Meyer purchased 20,000 shares of the company’s stock in a transaction dated Wednesday, August 14th. The stock was bought at an average cost of $2.60 per share, for a total transaction of $52,000.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 3.90% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Advisor Group Inc. raised its position in shares of Akorn by 556.7% in the second quarter. Advisor Group Inc. now owns 13,003 shares of the company’s stock valued at $67,000 after buying an additional 11,023 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Akorn by 36.8% in the second quarter. JPMorgan Chase & Co. now owns 1,337,844 shares of the company’s stock valued at $6,890,000 after buying an additional 360,240 shares in the last quarter. Aperio Group LLC raised its position in shares of Akorn by 12.0% in the second quarter. Aperio Group LLC now owns 88,349 shares of the company’s stock valued at $455,000 after buying an additional 9,443 shares in the last quarter. Bogle Investment Management L P DE acquired a new stake in shares of Akorn in the second quarter valued at approximately $1,455,000. Finally, Canyon Capital Advisors LLC acquired a new stake in shares of Akorn in the second quarter valued at approximately $12,825,000. Institutional investors own 67.95% of the company’s stock.

About Akorn

Akorn, Inc, a specialty generic pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. The company operates in two segments, Prescription Pharmaceuticals and Consumer Health.

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