Zacks Investment Research Downgrades Alkermes (ALKS) to Hold

Alkermes (NASDAQ:ALKS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.

According to Zacks, “Alkermes' Vivitrol and Aristada are primary growth drivers. 2018 is expected to be a transformative year for Alkermes’ development pipeline, with key events being- the phase III data readout for ALKS 3831 in schizophrenia, submission of the BIIB098 (ALKS 8700) NDA and phase I data read-out for ALKS 4230.In April 2018, the FDA accepted for review the new drug application (NDA) for ALKS 5461 for the treatment of major depressive disorder (“MDD”). The FDA had initially issued a Refusal to File letter on Mar 30 for the candidate stating that the NDA did not have enough evidence for the oral medication to work. The company also expects to expand its field sales team by about 200 sales representatives in mid 2018 as it prepares for the potential launch of ALKS 5461 in early 2019. However, Alkermes is highly dependent on manufacturing and/or royalty revenues on sales of products that are commercialized by the company's partners”

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Other equities analysts have also issued research reports about the stock. Credit Suisse Group set a $66.00 price objective on shares of Alkermes and gave the company a “buy” rating in a research report on Wednesday, February 14th. BidaskClub raised shares of Alkermes from a “hold” rating to a “buy” rating in a research report on Wednesday, March 28th. JPMorgan Chase set a $63.00 price objective on shares of Alkermes and gave the company a “buy” rating in a research report on Tuesday, April 3rd. Morgan Stanley reaffirmed an “equal weight” rating and set a $67.00 price objective (up previously from $60.00) on shares of Alkermes in a research report on Friday, February 23rd. Finally, Citigroup set a $62.00 price objective on shares of Alkermes and gave the company a “hold” rating in a research report on Thursday, February 15th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the stock. Alkermes has an average rating of “Hold” and an average price target of $59.92.

Shares of ALKS opened at $46.02 on Friday. The company has a market cap of $7,153.31, a P/E ratio of -124.38 and a beta of 1.82. The company has a debt-to-equity ratio of 0.23, a quick ratio of 2.46 and a current ratio of 2.78. Alkermes has a twelve month low of $41.15 and a twelve month high of $71.22.

Alkermes (NASDAQ:ALKS) last issued its quarterly earnings data on Wednesday, February 14th. The company reported $0.31 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.32. The firm had revenue of $275.37 million for the quarter, compared to analyst estimates of $251.23 million. Alkermes had a negative net margin of 17.48% and a negative return on equity of 4.32%. The company’s revenue for the quarter was up 29.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.02 earnings per share. analysts predict that Alkermes will post -0.57 earnings per share for the current year.

In other news, Director Paul J. Mitchell sold 1,000 shares of the firm’s stock in a transaction on Monday, April 2nd. The shares were sold at an average price of $46.75, for a total value of $46,750.00. Following the sale, the director now owns 8,000 shares in the company, valued at $374,000. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Shane Cooke sold 1,700 shares of the firm’s stock in a transaction on Friday, January 26th. The stock was sold at an average price of $60.02, for a total transaction of $102,034.00. Following the completion of the sale, the insider now owns 76,408 shares in the company, valued at approximately $4,586,008.16. The disclosure for this sale can be found here. In the last quarter, insiders have sold 91,673 shares of company stock worth $5,635,250. Corporate insiders own 5.34% of the company’s stock.

Several institutional investors have recently made changes to their positions in the company. Xact Kapitalforvaltning AB grew its stake in shares of Alkermes by 45.1% in the fourth quarter. Xact Kapitalforvaltning AB now owns 26,111 shares of the company’s stock worth $1,429,000 after acquiring an additional 8,114 shares during the last quarter. Glenmede Trust Co. NA grew its stake in shares of Alkermes by 99.1% in the fourth quarter. Glenmede Trust Co. NA now owns 32,993 shares of the company’s stock worth $1,805,000 after acquiring an additional 16,423 shares during the last quarter. Teachers Advisors LLC grew its stake in shares of Alkermes by 1.9% in the fourth quarter. Teachers Advisors LLC now owns 164,760 shares of the company’s stock worth $9,017,000 after acquiring an additional 2,995 shares during the last quarter. Paloma Partners Management Co grew its stake in shares of Alkermes by 54.1% in the fourth quarter. Paloma Partners Management Co now owns 7,383 shares of the company’s stock worth $405,000 after acquiring an additional 2,591 shares during the last quarter. Finally, Two Sigma Investments LP grew its stake in shares of Alkermes by 3,926.3% in the fourth quarter. Two Sigma Investments LP now owns 214,272 shares of the company’s stock worth $11,727,000 after acquiring an additional 219,872 shares during the last quarter.

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Alkermes Company Profile

Alkermes plc is a biopharmaceutical company. The Company is engaged in the researching, developing and commercializing pharmaceutical products that are designed to address medical needs of patients in therapeutic areas. The Company has a portfolio of marketed drug products and a clinical pipeline of products that address central nervous system (CNS) disorders, such as schizophrenia, depression, addiction and multiple sclerosis (MS).

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