AmerisourceBergen (NYSE:ABC) Shares Gap Up After Strong Earnings

AmerisourceBergen Corp. (NYSE:ABC) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $92.52, but opened at $91.70. AmerisourceBergen shares last traded at $89.15, with a volume of 44,699 shares changing hands.

The company reported $1.76 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.62 by $0.14. The company had revenue of $45.24 billion during the quarter, compared to the consensus estimate of $45.15 billion. AmerisourceBergen had a net margin of 0.53% and a return on equity of 46.24%. AmerisourceBergen’s revenue was up 4.9% compared to the same quarter last year. During the same period last year, the firm earned $1.54 earnings per share.

Several brokerages have weighed in on ABC. Bank of America downgraded shares of AmerisourceBergen from a “buy” rating to an “underperform” rating and lowered their target price for the company from $95.00 to $76.00 in a research note on Wednesday, April 10th. Zacks Investment Research upgraded shares of AmerisourceBergen from a “hold” rating to a “buy” rating and set a $89.00 target price for the company in a research note on Wednesday, June 12th. Argus lowered their target price on shares of AmerisourceBergen from $115.00 to $100.00 and set a “buy” rating for the company in a research note on Monday, June 3rd. ValuEngine upgraded shares of AmerisourceBergen from a “sell” rating to a “hold” rating in a research note on Wednesday, May 22nd. Finally, Guggenheim began coverage on shares of AmerisourceBergen in a research note on Thursday, April 11th. They issued a “buy” rating for the company. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company. AmerisourceBergen currently has a consensus rating of “Hold” and an average target price of $88.33.

In related news, Chairman Steven H. Collis sold 107,826 shares of the firm’s stock in a transaction on Wednesday, June 19th. The shares were sold at an average price of $86.18, for a total transaction of $9,292,444.68. Following the completion of the transaction, the chairman now owns 242,405 shares of the company’s stock, valued at $20,890,462.90. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Henry Wadsworth Mcgee III sold 10,585 shares of the firm’s stock in a transaction on Thursday, July 11th. The stock was sold at an average price of $91.97, for a total transaction of $973,502.45. Following the transaction, the director now directly owns 24,510 shares of the company’s stock, valued at approximately $2,254,184.70. The disclosure for this sale can be found here. In the last ninety days, insiders sold 163,179 shares of company stock valued at $13,907,781. Corporate insiders own 27.80% of the company’s stock.

Institutional investors have recently modified their holdings of the stock. Boston Partners increased its holdings in AmerisourceBergen by 222.4% in the first quarter. Boston Partners now owns 2,343,027 shares of the company’s stock valued at $186,317,000 after buying an additional 1,616,201 shares in the last quarter. Norges Bank purchased a new position in AmerisourceBergen in the fourth quarter valued at $103,863,000. Marshall Wace North America L.P. increased its holdings in AmerisourceBergen by 318.9% in the first quarter. Marshall Wace North America L.P. now owns 907,474 shares of the company’s stock valued at $72,163,000 after buying an additional 690,823 shares in the last quarter. Ceredex Value Advisors LLC increased its holdings in AmerisourceBergen by 23.9% in the first quarter. Ceredex Value Advisors LLC now owns 2,135,142 shares of the company’s stock valued at $169,787,000 after buying an additional 411,607 shares in the last quarter. Finally, Deutsche Bank AG increased its holdings in AmerisourceBergen by 69.2% in the fourth quarter. Deutsche Bank AG now owns 788,997 shares of the company’s stock valued at $58,697,000 after buying an additional 322,821 shares in the last quarter. 66.49% of the stock is owned by hedge funds and other institutional investors.

The company has a current ratio of 0.95, a quick ratio of 0.56 and a debt-to-equity ratio of 1.43. The business’s fifty day simple moving average is $86.61. The stock has a market capitalization of $18.65 billion, a P/E ratio of 13.73, a PEG ratio of 1.68 and a beta of 0.95.

About AmerisourceBergen (NYSE:ABC)

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers.

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