Mallinckrodt stock: buy or sell?

MNK stock price: $5.17 -7.68% At close on January 24th, 2020

Updated on:
January 24th, 2020

1

Shares of Mallinckrodt collapsed a dreadful -7.68% and closed at $5.17. On Tuesday MNK climbed an exceptional 13.91%.

Mallinckrodt public limited company develops, manufactures, markets, and distributes branded and generic specialty pharmaceutical products and therapies in the United States, Europe, the Middle East, Africa, and internationally.

Should I buy Mallinckrodt stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Mallinckrodt stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Mallinckrodt stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we detected 14 ratings published for MNK stock in the last month.

Is MNK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9Stifel Nicolausn/aHold
2019-9-5BMO Capital MarketsOutperformMarket Perform
2019-8-28Barclaysn/aEqual Weight
2019-8-12SunTrust BanksHoldPositive
2019-7-11Jefferies Financial GroupHoldReduce
2019-6-6Wells Fargo & Con/aMarket Perform
2019-6-14Canaccord Genuityn/aBuy
2019-6-14Canaccord Genuityn/aBuy
2019-6-12Cantor Fitzgeraldn/aOverweight
2019-6-11Barclaysn/aEqual Weight
2019-5-24JPMorgan Chase & Co.n/aNeutral
2019-5-22Jefferies Financial GroupBuyHold
2019-3-19SunTrust Banksn/aHold
2019-2-28Mizuhon/aNeutral

Mallinckrodt stock analysis

Daily outlook

Mallinckrodt shares collapsed -7.68% to $5.17 on Jan 24th.

Mallinckrodt shares collapsed -7.68% to $5.17 on January 24th. In the last 31 days when SMA50d and SMA100d crossed up, MNK price gained $1.48 per share (40.11%).

MNK stock chart (daily)

Weekly outlook

After boosting an amazing 39.04% in a week last week, Mallinckrodt closed this week at $5.17 and decreased an unpleasant -0.58%. Early January MNK collapsed a hair-raising -5.99% in just one week.

If you observe the weekly chart, price finally broke over the resistance at $4.08 and continued climbing. Since SMA10d and SMA20w crossed up by mid December 2019, MNK price climbed $1.60 per share (44.82%).

MNK stock chart (weekly)

Mallinckrodt stock price history

Mallinckrodt IPO was on June 17th, 2013 at $43.20 per share1. Since then, MNK stock declined a -88.00%, with a yearly average of -14.70%.

1: Adjusted price after possible price splits or reverse-splits.

Mallinckrodt stock historical price chart

MNK stock reached 52-week highs on February at $27.33, and all-time highs 2015-03-23 with a price of 134.26.

Mallinckrodt stock price target is $13.80

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' MNK stock price predictions in the hope that they will be met as they may be wrong and not met. We detected 12 price predictions for Mallinckrodt stock posted in the last 30 days:
MNK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-9Stifel NicolausLowers Target$20.00$8.00-60%
2019-8-28BarclaysLowers Target$7.00$5.00-28.6%
2019-8-12SunTrust BanksLowers Targetn/a$7.00-
2019-7-11Jefferies Financial GroupLowers Target$15.00$10.00-33.3%
2019-6-6Wells Fargo & CoLowers Target$25.00$11.00-56%
2019-6-14Canaccord GenuityReiterates$37.00$22.00-40.5%
2019-6-14Canaccord GenuityLowers Target$37.00$22.00-40.5%
2019-6-12Cantor FitzgeraldReiterates$42.00$18.00-57.1%
2019-6-11BarclaysInitiatesn/a$11.00-
2019-5-24JPMorgan Chase & Co.Lowers Target$22.00$11.00-50%
2019-5-22Jefferies Financial GroupDowngrades$25.00$15.00-40%
2019-2-28MizuhoRaises Targetn/a$26.00-
(in average)$25.60$13.80-46.0%
The price target for Mallinckrodt stock is $13.80, moving in a range between $26.00 and $5.00. In average, analysts' outlook on MNK price forecast is negative, reducing the target by a -46.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Mallinckrodt reported its latest financial data, posting a pretty good growth for the Earnings per Share (EPS). Analyst were expecting $1.93 per share, but Mallinckrodt posted $2.18.
MNK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.02n/a
2017-Q2-n/a0.73n/a
2017-Q32017-11-071.811.978.8%
2017-Q42018-02-271.722.0116.9%
2018-Q12018-05-081.111.3118.0%
2018-Q22018-08-071.491.7819.5%
2018-Q32018-11-061.82.116.7%
2018-Q42019-02-261.932.1813.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a neutral move of -0.19% to $3,215.60 M dollars. However, its income margin (compared to revenues) collapsed to -112.17%, that is $-3,607.00 million.

MNK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,200 M-$58 M2.6%-
2014$2,540 M15.47%$-319.30 M-12.6%-652.42%
2014$2,540 M-0.02%$-318.60 M-12.5%-0.22%
2015$3,347 M31.77%$325 M9.7%-201.91%
2015$2,920 M-12.76%$235 M8.0%-27.75%
2016$3,381 M15.78%$644 M19.0%174.38%
2016$3,380 M-0.02%$489 M14.5%-24.03%
2017$3,222 M-4.69%$2,134 M66.3%336.48%
2018$3,216 M-0.19%$-3,607.00 M-112.2%-268.99%

Quarterly financial results

Mallinckrodt reported $1,371.30 M in revenues for 2018-Q4, a 114.27% up compared to previous quarter. Reported quarter income marked $-3,718.40 million with a profit margin of -271.16%. Profit margin plummed a -288.94% compared to previous quarter when profit margin was 17.78%. When comparing turnover to same quarter last year, Mallinckrodt sales marked an awful slide and fell a -6.13%. Looking back to recent quarterly results, Mallinckrodt posted 3 positive quarters in a row.
MNK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$811 M-$28.90 M3.6%-
2017-Q2$825 M1.68%$70.60 M8.6%144.29%
2017-Q3$794 M-3.71%$63.70 M8.0%-9.77%
2017-Q4$1,461 M84.02%$1,608.70 M110.1%2,425.43%
2018-Q1$573 M-60.80%$-18.00 M-3.1%-101.12%
2018-Q2$632 M10.32%$15.60 M2.5%-186.67%
2018-Q3$640 M1.31%$113.80 M17.8%629.49%
2018-Q4$1,371 M114.27%$-3,718.40 M-271.2%-3,367.49%

Mallinckrodt ownership

When you are planning to invest in shares of a company, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Mallinckrodt, 2.78% of all outstanding shares are owned by its staff.

Bearish positions for MNK stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Mallinckrodt:

MNK
Market cap$434.7 M
Total shares84.1 M
Float shares76.1 M
  - Institutional holdings (%)104.3%
  - Insider holdings (%)2.8%
Shares in short selling0.0%

Mallinckrodt summary

Friday, January 24th, 2020
Open$5.62
Close$5.17
Day range$5.02 - $5.64
Previous close$5.60
Session gain-7.68%
Average true range$0.54
50d mov avg$3.66
100d mov avg$3.19
200d mov avg$6.71
Daily pattern
Weekly pattern lb01c

Mallinckrodt performance

To measure stock performance is always good to benchmark with competitors or related stocks. We selected as the bechmarking frame for Mallinckrodt stock.
Stock3m6m12m
MNKMallinckrodt62.07%-22.95%-76.12%

Mallinckrodt competitors

Unfortunately, we could not find any public company that could be defined as Mallinckrodt competitor. This doesn't mean Mallinckrodt does not have any competitor in the market, it's just we could not detected it.