Emergent BioSolutions Inc. (EBS) Price Target: Is It Set To Rise Or Fall In Price?

Emergent BioSolutions Inc. (NYSE:EBS) finished Friday with an addition of $2.74 to close at $52.22, an upside of 5.54 percent. An average of 640,120 shares of common stock have been traded in the last five days. There was a gain of $3.44 in the past week, and it reached a new high 11 times over the past 12 months. The last 20 days have seen an average of 777,320 shares traded, while the 50-day average volume stands at 1,186,364.

EBS stock has increased by 23.48% in the last month. The company shares reached their 1-month lowest point of $39.94 on 12/15/21. With the stock rallying to its 52-week high on 01/14/22, shares of the company touched a low of $29.88 and a high of $127.20 in 52 weeks. It has reached a new high 5 times so far this year and achieved 20.13% or $8.75 in price. In spite of this, the price is down -58.95% from the 52-week high.


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Insider Transactions

235 days have passed since Emergent BioSolutions Inc. (EBS) last reported insider trading activity. Zoon Kathryn C, who is Director, most recently acquired $3,139 shares at $56.48 per share on May 25. In this transaction, the insider spent $177,291. Director, Bailey Sue, disposed of 8,168 shares at a price of $92.37 on Mar 04. The insider now owns more than $754,478 worth of shares. Prior to that, EVP, Business Operations Havey Adam went on to Sale 37,279 shares at $99.30 each on Mar 01. An amount of $3,701,647 was transacted.

Valuation Metrics

Emergent BioSolutions Inc. (EBS) has a trailing price-to-earnings (P/E) ratio of 12.54, which compares with the 24.10 for the broader industry and 28.02 for the sector. The stock’s beta is 0.90. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.69, the price-to-book (PB) ratio at 1.84, and the price-to-cash flow ratio at 121.61.

The company has a payout ratio of 0.00%.

The quick ratio of Emergent BioSolutions Inc. for the three months ended September 29 was 2.00, and the current ratio was 3.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.54 and a total debt to equity ratio of 0.56 for the quarter ending September 29. Emergent BioSolutions Inc.’s EBITDA margin for the year ending September 29 is 39.15%, while its operating margin for the same period stands at 20.20%. Its gross profit as reported stood at $1.03 billion compared to revenue of $1.56 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Emergent BioSolutions Inc.’s return on assets was 7.90%. For the broader industry, ROE averaged 3.60 over the past year.

Earnings Surprise

For the three-month period that ended September 29, Emergent BioSolutions Inc. had $817.3 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$32.7 million in the quarter, while revenues of $4.6 million were grew 220.8%. The analyst consensus anticipated Emergent BioSolutions Inc.’s latest quarter earnings to come in at $2.35 per share, but it turned out to be -$0.36, a -115.30% surprise. For the quarter, EBITDA amounted to -$0.9 million. Shareholders own equity worth $53.8 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Emergent BioSolutions Inc. (EBS) price momentum. RSI 9-day as of the close on 14 January was 69.50%, suggesting the stock is Neutral, with historical volatility in this time frame at 47.91%.

As of today, EBS’s price is $50.27 +7.05% or $3.44 from its 5-day moving average. EBS is currently trading +22.78% higher than its 20-day SMA and -16.79% lower than its 100-day SMA. However, the stock’s current price level is -0.70% below the SMA50 and -35.10% below the SMA200.

The stochastic %K and %D were 79.11% and 80.12%, respectively, and the average true range (ATR) was 2.39. With the 14-day stochastic at 99.33% and the average true range at 2.32, the RSI (14) stands at 65.98%. The stock has reached 0.98 on the 9-day MACD Oscillator while the 14-day reading was at 2.29.

Analyst Ratings

The Benchmark Company downgraded Emergent BioSolutions Inc. (NYSE: EBS) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Emergent BioSolutions Inc. (EBS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell EBS, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is EBS’s price target for the next 12 months?

Analysts predict a range of price targets between $37.00 and $75.00, with a median target of $59.00. Taking a look at these predictions, the average price target given by analysts for Emergent BioSolutions Inc. (EBS) stock is $57.83.

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