Zacks Investment Research Downgrades GlaxoSmithKline (GSK) to Hold

GlaxoSmithKline (NYSE:GSK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.

According to Zacks, “We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma. Data from several of the late-state pipeline programs are expected in 2018. Performance of new products has been encouraging. Meanwhile, back-to-back approvals of three new products – Trelegy Ellipta, Shingrix and Juluca – have strengthened Glaxo’s competitive position. After underperforming the broader industry in 2017, Glaxo’s shares have picked up this year. However, persistent challenges like stiff competition, genericization and pricing pressure along with slowing growth in emerging markets have been impacting the company’s performance. Meanwhile its top-selling respiratory product, Advair is also expected to face generic competition in the United States this year, which will hurt sales. Estimates have gone up ahead of Q1 earnings release. However, Glaxo has a positive record of earnings surprises in recent quarters.”

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Other research analysts also recently issued research reports about the company. UBS reaffirmed a “buy” rating on shares of GlaxoSmithKline in a report on Monday, January 15th. TheStreet downgraded GlaxoSmithKline from a “b-” rating to a “c” rating in a report on Wednesday, February 7th. Morgan Stanley raised GlaxoSmithKline from an “underweight” rating to an “equal weight” rating in a report on Thursday, March 22nd. ValuEngine downgraded GlaxoSmithKline from a “buy” rating to a “hold” rating in a report on Sunday, December 31st. Finally, Cowen reaffirmed a “hold” rating and set a $40.00 target price on shares of GlaxoSmithKline in a report on Thursday, February 15th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and five have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $40.21.

GSK traded down $0.64 on Thursday, reaching $39.80. The company’s stock had a trading volume of 1,940,105 shares, compared to its average volume of 3,970,130. The company has a market capitalization of $100,441.87, a P/E ratio of 13.82, a P/E/G ratio of 2.13 and a beta of 0.84. GlaxoSmithKline has a 1 year low of $34.52 and a 1 year high of $44.53. The company has a debt-to-equity ratio of 4.09, a quick ratio of 0.39 and a current ratio of 0.60.

GlaxoSmithKline (NYSE:GSK) last issued its quarterly earnings results on Wednesday, February 7th. The pharmaceutical company reported $0.72 EPS for the quarter, beating analysts’ consensus estimates of $0.69 by $0.03. The firm had revenue of $10.14 billion during the quarter, compared to the consensus estimate of $9.89 billion. GlaxoSmithKline had a return on equity of 130.63% and a net margin of 4.97%. equities research analysts forecast that GlaxoSmithKline will post 2.94 earnings per share for the current fiscal year.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Field & Main Bank bought a new stake in shares of GlaxoSmithKline in the 4th quarter worth approximately $132,000. Amussen Hunsaker Associates LLC bought a new stake in shares of GlaxoSmithKline in the 4th quarter worth approximately $141,000. First Dallas Securities Inc. bought a new stake in shares of GlaxoSmithKline in the 4th quarter worth approximately $142,000. California Capital Advisors Inc. bought a new stake in shares of GlaxoSmithKline in the 4th quarter worth approximately $210,000. Finally, Capital Investment Advisory Services LLC bought a new stake in shares of GlaxoSmithKline in the 4th quarter worth approximately $219,000. 10.96% of the stock is currently owned by institutional investors and hedge funds.

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About GlaxoSmithKline

GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterials, dermatology, rare diseases, immuno-inflammation, and HIV, as well as vaccines.

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