Mallinckrodt stock: buy or sell?
January 24th, 2020
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-5||BMO Capital Markets||Outperform||Market Perform|
|2019-7-11||Jefferies Financial Group||Hold||Reduce|
|2019-6-6||Wells Fargo & Co||n/a||Market Perform|
|2019-5-24||JPMorgan Chase & Co.||n/a||Neutral|
|2019-5-22||Jefferies Financial Group||Buy||Hold|
Mallinckrodt stock analysis
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%).
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%).
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 $13.80Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-9||Stifel Nicolaus||Lowers Target||$20.00||$8.00||-60%|
|2019-8-12||SunTrust Banks||Lowers Target||n/a||$7.00||-|
|2019-7-11||Jefferies Financial Group||Lowers Target||$15.00||$10.00||-33.3%|
|2019-6-6||Wells Fargo & Co||Lowers Target||$25.00||$11.00||-56%|
|2019-6-14||Canaccord Genuity||Lowers Target||$37.00||$22.00||-40.5%|
|2019-5-24||JPMorgan Chase & Co.||Lowers Target||$22.00||$11.00||-50%|
|2019-5-22||Jefferies Financial Group||Downgrades||$25.00||$15.00||-40%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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.
|2013||$2,200 M||-||$58 M2.6%||-|
|2014||$2,540 M||15.47%||$-319.30 M-12.6%||-652.42%|
|2014||$2,540 M||-0.02%||$-318.60 M-12.5%||-0.22%|
|2015||$3,347 M||31.77%||$325 M9.7%||-201.91%|
|2015||$2,920 M||-12.76%||$235 M8.0%||-27.75%|
|2016||$3,381 M||15.78%||$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 resultsMallinckrodt 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.
|2017-Q1||$811 M||-||$28.90 M3.6%||-|
|2017-Q2||$825 M||1.68%||$70.60 M8.6%||144.29%|
|2017-Q3||$794 M||-3.71%||$63.70 M8.0%||-9.77%|
|2017-Q4||$1,461 M||84.02%||$1,608.70 M110.1%||2,425.43%|
|2018-Q1||$573 M||-60.80%||$-18.00 M-3.1%||-101.12%|
|2018-Q2||$632 M||10.32%||$15.60 M2.5%||-186.67%|
|2018-Q3||$640 M||1.31%||$113.80 M17.8%||629.49%|
|2018-Q4||$1,371 M||114.27%||$-3,718.40 M-271.2%||-3,367.49%|
Mallinckrodt ownershipWhen 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:
|Market cap||$434.7 M|
|Total shares||84.1 M|
|Float shares||76.1 M|
|- Institutional holdings (%)||104.3%|
|- Insider holdings (%)||2.8%|
|Shares in short selling||0.0%|
|Friday, January 24th, 2020|
|Day range||$5.02 - $5.64|
|Average true range||$0.54|
|50d mov avg||$3.66|
|100d mov avg||$3.19|
|200d mov avg||$6.71|
Mallinckrodt performanceTo measure stock performance is always good to benchmark with competitors or related stocks. We selected as the bechmarking frame for Mallinckrodt stock.