Zacks Investment Research Downgrades AMAG Pharmaceuticals (AMAG) to Strong Sell

AMAG Pharmaceuticals (NASDAQ:AMAG) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday, Zacks.com reports.

According to Zacks, “AMAG reported wider than expected loss and sales missed estimates in the first quarter of 2019. The company’s drug-Makena’s generic hit the market in July 2018, which pulled down the drug’s sales. Feraheme currently competes with IV iron replacement therapies like Venofer, Injectafer, Ferrlecit and their generic versions, among others. Shares of the company have underperformed the industry year to date.  However, the FDA approved the label expansions of Feraheme and Makena, and accepted  the NDA for Vyleesi with an action date of June 23, 2019 bodes well for the company. Meanwhile,the company broadened its product pipeline by adding two promising development-stage assets — AMAG-423, an orphan drug for the potential treatment of severe preeclampsia and thein-licensing of Intrarosa. The company also divested the Cord Blood Registry (CBR) business and strengthened its balance sheet.”

Several other research analysts have also recently commented on AMAG. BidaskClub cut shares of AMAG Pharmaceuticals from a “hold” rating to a “sell” rating in a report on Thursday, January 31st. ValuEngine cut shares of AMAG Pharmaceuticals from a “strong-buy” rating to a “buy” rating in a report on Friday, February 15th. Cantor Fitzgerald restated a “hold” rating and set a $14.00 target price (down previously from $17.00) on shares of AMAG Pharmaceuticals in a report on Thursday, March 14th. Finally, SunTrust Banks started coverage on shares of AMAG Pharmaceuticals in a report on Tuesday, March 19th. They set a “hold” rating for the company. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the company. AMAG Pharmaceuticals has a consensus rating of “Hold” and an average price target of $19.41.

Shares of AMAG stock traded down $0.26 during trading hours on Monday, hitting $10.08. 12,181 shares of the company were exchanged, compared to its average volume of 669,892. AMAG Pharmaceuticals has a 52 week low of $10.08 and a 52 week high of $26.10. The company has a market capitalization of $349.15 million, a price-to-earnings ratio of -2.61 and a beta of 0.34. The company has a quick ratio of 2.13, a current ratio of 2.30 and a debt-to-equity ratio of 0.44.

AMAG Pharmaceuticals (NASDAQ:AMAG) last announced its earnings results on Tuesday, May 7th. The specialty pharmaceutical company reported ($3.32) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.55) by ($2.77). AMAG Pharmaceuticals had a negative return on equity of 26.33% and a negative net margin of 30.90%. The business had revenue of $75.80 million for the quarter, compared to analyst estimates of $90.13 million. During the same quarter in the previous year, the company posted ($1.59) EPS. The business’s revenue for the quarter was down 35.4% compared to the same quarter last year. On average, equities analysts expect that AMAG Pharmaceuticals will post -5.73 EPS for the current year.

In other news, insider Elizabeth Scott Bolgiano purchased 5,000 shares of the business’s stock in a transaction on Thursday, May 9th. The stock was purchased at an average price of $10.93 per share, for a total transaction of $54,650.00. Following the completion of the purchase, the insider now directly owns 74,847 shares in the company, valued at approximately $818,077.71. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO William K. Heiden purchased 10,000 shares of the business’s stock in a transaction on Thursday, May 9th. The stock was purchased at an average price of $10.70 per share, with a total value of $107,000.00. Following the purchase, the chief executive officer now owns 490,056 shares of the company’s stock, valued at $5,243,599.20. The disclosure for this purchase can be found here. Company insiders own 4.90% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the business. Pearl River Capital LLC bought a new position in shares of AMAG Pharmaceuticals in the fourth quarter valued at about $28,000. Quantamental Technologies LLC bought a new position in shares of AMAG Pharmaceuticals in the fourth quarter valued at about $107,000. NumerixS Investment Technologies Inc raised its position in shares of AMAG Pharmaceuticals by 17.8% in the first quarter. NumerixS Investment Technologies Inc now owns 7,166 shares of the specialty pharmaceutical company’s stock valued at $90,000 after purchasing an additional 1,083 shares during the period. First Quadrant L P CA bought a new position in shares of AMAG Pharmaceuticals in the fourth quarter valued at about $141,000. Finally, Municipal Employees Retirement System of Michigan bought a new position in shares of AMAG Pharmaceuticals in the fourth quarter valued at about $151,000.

About AMAG Pharmaceuticals

AMAG Pharmaceuticals, Inc, a biopharmaceutical company, develops, manufactures, and commercializes therapeutics for maternal and women's health, anemia management, and cancer supportive care in the United States. It markets Feraheme (ferumoxytol), an intravenous iron replacement therapeutic agent for the treatment of iron deficiency anemia in adult patients who have intolerance to oral iron or have had unsatisfactory response to oral iron, as well as patients who have chronic kidney disease; Makena, a hydroxyprogesterone caproate injection to reduce the risk of preterm birth in women pregnant with a single baby who have a history of singleton spontaneous preterm birth; Intrarosa(prasterone) vaginal insert steroid for the treatment of dyspareunia due to menopause; and MuGard Mucoadhesive Oral Wound Rinse for the management of oral mucocitis/stomatiits and various types of oral wounds.

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