AmerisourceBergen Co. (NYSE:ABC), a leading pharmaceutical services company, has received a “Moderate Buy” consensus recommendation from fourteen ratings firms, as reported by Bloomberg.com. Out of the fourteen, two investment analysts have rated the stock as a hold, while twelve issued a buy recommendation on the company. The average 1-year target price among these analysts is $189.36.
On September 27, 2023, shares of AmerisourceBergen (NYSE:ABC) opened at $179.98. The company currently has a market capitalization of $36.39 billion and a PE ratio of 21.92. With a P/E/G ratio of 1.79 and a beta of 0.56, AmerisourceBergen presents itself as an attractive investment opportunity for many.
Taking into account its financial health, AmerisourceBergen boasts a quick ratio of 0.52 and a current ratio of 0.88, indicating its ability to meet short-term obligations without difficulty. Additionally, the company has maintained a debt-to-equity ratio of 4.51.
Over the past year, the stock has seen significant movement between its lowest point at $135.14 and its highest point at $194.79.
In recent news regarding insider trading activity at AmerisourceBergen, CEO Steven H. Collis sold 10,499 shares on July 11th at an average price of $192.87 per share for a total transaction amounting to $2,024,942.13. Following this sale, Collis now directly owns 257,967 shares in the company valued at approximately $49,754,095.29.
Furthermore; Walgreens Boots Alliance Inc., one of AmeriSourceBergens major shareholders sold approximately 1,320858 shares on August third for an average price of $189.27, resulting in a total transaction amounting to $249,998,793.66. After the sale, the insider currently holds 31,769,546 shares of the company’s stock with a valuation of $6,013,021,971.42.
In total over the past ninety days; insiders sold 1,341856 shares of AmerisourceBergen stock worth an estimated $253.978.545). Insiders presently own approximately 20.10% of the company’s stock.
AmerisourceBergen posted its most recent earnings results on August 2nd with earnings per share at $2.92 for the quarter. This amount exceeded the consensus estimate of $2.83 by $0.09. The company also reported revenues amounting to $66.95 billion during this quarter compared to a consensus estimate of $63.93 billion.
The net margin stood at 0.66% for AmerisourceBergen while displaying an impressive return on equity (ROE) ratio of 612.69%.
With such positive financial performance and optimistic projections for EPS in the current year; analysts forecast AmerisourceBergen to have a very promising future ahead
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Analyst Reports Spark Interest in AmerisourceBergen Corporation’s Outlook
AmerisourceBergen Corporation, commonly referred to as ABC, has been attracting attention from various analyst reports recently. Notably, StockNews.com initiated coverage on the company’s shares and bestowed a “strong-buy” rating upon analyzing its performance. This sentiment was echoed by TD Cowen, who raised their price objective on AmerisourceBergen’s stock from $205.00 to $215.00 and gave it an “outperform” rating.
Bank of America also expressed confidence in AmerisourceBergen’s prospects by increasing its price objective from $200.00 to $212.00. Likewise, Mizuho displayed optimism by boosting their price objective from $174.00 to $192.00 in their research note, while Morgan Stanley lifted their target price from $176.00 to $190.00.
These select ratings and assessments have caused a sense of curiosity among investors and industry observers alike regarding the reasons behind such significant upgrades in AmerisourceBergen’s outlook.
In addition to these noteworthy developments, it is crucial to mention that AmerisourceBergen recently announced a quarterly dividend payment that was executed on August 28th, much to the delight of its shareholders. Those recorded as stockholders on August 11th received a dividend of $0.485 per share. The ex-dividend date for this payout was determined as August 10th.
Delving further into the financial dynamics of the American multinational pharmaceutical services corporation reveals that this dividend distribution resulted in an annualized dividend of $1.94 per share with a dividend yield standing at 1.08%. Moreover, it is worth mentioning that AmerisourceBergen possesses a payout ratio of 23.63%.
While these figures may arouse interest among market observers attempting to gauge the financial health and growth trajectory of AmerisourceBergen Corporation, it must be emphasized that the multiple reports from analysts have provided limited insights into the catalysts driving these ratings and persuasions.
As such, it remains perplexing as to what exactly prompted these analysts to gravitate towards a more bullish stance on AmerisourceBergen. Without comprehensive facts and analysis at hand, it is challenging to ascertain the underlying factors contributing to these perspectives.
In conclusion, AmerisourceBergen Corporation has recently found itself under scrutiny from several influential analyst reports. These assessments have elevated the company’s stock rating and price objectives, generating enthusiasm among potential investors. Additionally, the corporation’s payment of a quarterly dividend has been received positively by its stakeholders. Nonetheless, while these developments are intriguing, there is still a certain level of bafflement surrounding the exact reasons behind these notable changes in AmerisourceBergen’s outlook.
