Merrimack Pharmaceuticals (NASDAQ:MACK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, May 2nd. The brokerage currently has a $9.75 target price on the biopharmaceutical company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 10.42% from the stock’s current price.
According to Zacks, “With the sale of Onivyde, Merrimack is back to being a development-stage biopharmaceutical company. Hence, the successful development of the three lead candidates in its pipeline is critical for Merrimack’s growth. Moreover, two of the candidates, MM-121 and MM-141, are still being evaluated in phase II studies while the third candidate, MM-310 is in a phase I study. Also, shares of the company have underperformed the industry year to date. However, the cash received from Ipsen was used to pay down the huge debt and return value to shareholders in the form of dividends. Moreover, the company has also invested part of the proceeds to develop its streamlined oncology pipeline. Shares of the company have underperformed the industry so far this year. Estimates have remained stable ahead of the company’s Q1 earnings release. The company has a mixed record of earnings surprises in recent quarters.”
Separately, Robert W. Baird reiterated a “hold” rating and issued a $12.00 target price on shares of Merrimack Pharmaceuticals in a report on Thursday, March 15th.
Merrimack Pharmaceuticals opened at $8.83 on Wednesday, MarketBeat.com reports. The firm has a market capitalization of $117.82 million, a P/E ratio of -1.56 and a beta of 1.83. Merrimack Pharmaceuticals has a fifty-two week low of $8.80 and a fifty-two week high of $8.86.
Merrimack Pharmaceuticals (NASDAQ:MACK) last issued its earnings results on Monday, March 12th. The biopharmaceutical company reported ($0.89) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($1.27) by $0.38. research analysts predict that Merrimack Pharmaceuticals will post -4.66 EPS for the current year.
A number of hedge funds and other institutional investors have recently modified their holdings of MACK. Jane Street Group LLC purchased a new stake in Merrimack Pharmaceuticals in the 4th quarter worth approximately $107,000. Spark Investment Management LLC purchased a new stake in Merrimack Pharmaceuticals in the 4th quarter worth approximately $109,000. Virtu Financial LLC acquired a new position in shares of Merrimack Pharmaceuticals during the 4th quarter worth approximately $115,000. Wells Fargo & Company MN raised its stake in shares of Merrimack Pharmaceuticals by 43.9% during the 4th quarter. Wells Fargo & Company MN now owns 18,287 shares of the biopharmaceutical company’s stock worth $187,000 after buying an additional 5,581 shares during the period. Finally, Stonebridge Capital Management Inc. acquired a new position in shares of Merrimack Pharmaceuticals during the 4th quarter worth approximately $200,000. Hedge funds and other institutional investors own 53.90% of the company’s stock.
About Merrimack Pharmaceuticals
Merrimack Pharmaceuticals, Inc, a clinical stage biopharmaceutical company, focuses on biomarker-defined cancers in the United States. The company's clinical programs include MM-121, which is in Phase II clinical trial for the treatment of patients with heregulin positive non-small cell lung cancer; and MM-141, a human tetravalent bispecific antibody that is in Phase II clinical trial for treating patients with metastatic pancreatic cancer with high serum levels of free insulin-like growth factor 1.
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