Stocks of Embecta Corp. (EMBC) are poised to climb above their peers

Embecta Corp. (NASDAQ: EMBC) stock fell -1.21% on Friday to $16.29 against a previous-day closing price of $16.49. With 1.36 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.66 million shares. During the session, the Medical Instruments & Supplies company that operates in wider Healthcare sector, reached to the highest price of $16.52 whereas the lowest price it dropped to was $15.86. The 52-week range on EMBC shows that it touched its highest point at $36.64 and its lowest point at $15.20 during that stretch. It currently has a 1-year price target of $20.50. With its current market cap of 944.82 million, EMBC has annualized dividend of $0.60 while the current yield stands at 3.68%. Beta for the stock currently stands at 0.53.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EMBC was up-trending over the past week, with a rise of 2.20%, but this was down by -13.72% over a month. Three-month performance dropped to -38.04% while six-month performance fell -44.84%. The stock lost -49.88% in the past year, while it has lost -35.59% so far this year. A look at the trailing 12-month EPS for EMBC yields 0.81 with Next year EPS estimates of 2.02. For the next quarter, that number is 0.41. This implies an EPS growth rate of -45.70% for this year and -28.30% for next year.

Float and Shares Shorts:

At present, 57.30 million EMBC shares are outstanding with a float of 56.97 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.38 million, which was 7.65% higher than short shares on Jul 30, 2023. In addition to Mr. Devdatt Kurdikar as the firm’s Pres, CEO & Director, Mr. Jacob P. Elguicze serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 96.80% of EMBC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.14% of EMBC, in contrast to 32.98% held by mutual funds. Shares owned by individuals account for 0.97%. As the largest shareholder in EMBC with 14.66% of the stake, BlackRock Fund Advisors holds 8,398,100 shares worth 8,398,100. A second-largest stockholder of EMBC, The Vanguard Group, Inc., holds 6,864,543 shares, controlling over 11.98% of the firm’s shares. American Century Investment Manag is the third largest shareholder in EMBC, holding 5,233,017 shares or 9.13% stake. With a 7.05% stake in EMBC, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,036,929 shares are owned by the mutual fund manager. The Fidelity Low Priced Stock Fund, which owns about 4.44% of EMBC stock, is the second-largest Mutual Fund holder. It holds 2,545,293 shares valued at 46.66 million. American Century Mid Cap Value Fu holds 3.94% of the stake in EMBC, owning 2,255,442 shares worth 41.34 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, EMBC reported revenue of $291.10M and operating income of $97.10M. The EBITDA in the recently reported quarter was $102.20M and diluted EPS was $1.07.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EMBC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With EMBC analysts setting a high price target of $25.00 and a low target of $16.00, the average target price over the next 12 months is $20.50. Based on these targets, EMBC could surge 53.47% to reach the target high and fall by -1.78% to reach the target low. Reaching the average price target will result in a growth of 25.84% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded EMBC stock several times over the past three months with 4 Buys and 0 Sells. In these transactions, 25,602 shares were bought while 0 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 240,671 while 25,034 shares were sold.

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