Mallinckrodt stock: buy or sell?

MNK stock price: $2.44 0.00% At close on September 20th, 2019

Updated on:
September 20th, 2019

1

After sliding for 4 days, Friday Mallinckrodt stayed constant a tight 0.00%, closing at $2.44. On Sep 13th MNK boosted a dazzling 9.39%. On Sep 18th MNK plummed a bloodcurdling -7.11%. Last session broke a streak of 4 red days in a row.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. 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?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 14 ratings published for MNK stock in the last 30 days.

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

After sliding for 4 sessions, Friday Mallinckrodt stayed constant a tight 0.00%, closing at $2.44.

After sliding for 4 days, Friday Mallinckrodt stayed steady a tight 0.00%, closing at $2.44.

MNK stock chart (daily)

Weekly outlook

After boosting a dazzling 43.33% in a week last week, Mallinckrodt closed this week at $2.44 and plunged a chilling -26.06%.

Since early March, when MNK stock price broke down the 40-weeks moving avarage line, it slid $-22.47 per share (-90.20%). Stocks below the 40-weeks moving average line are usually not recommended for average traders.

MNK stock chart (weekly)

Mallinckrodt stock price history

Mallinckrodt IPO was on June 17th, 2013 at $43.20 per share1. Since then, MNK stock sliced a -94.40%, with a yearly average of -15.70%.

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

Mallinckrodt stock historical price chart

MNK stock reached 52-week highs on November at $32.34, and all-time highs 2015-03-23 with a price of 134.26.

Mallinckrodt stock price target is $13.80

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 12 price targets for Mallinckrodt stock:
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%
Moving in a range from $26.00 and $5.00, the price forecast for Mallinckrodt stock is $13.80. In average, analysts' outlook on MNK price target is negative, downsizing the target by a -46.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Mallinckrodt reported great results for 2018-Q4 on February. Mallinckrodt jumped Earnings per Share (EPS) by 13.00%, beating analysts of $1.93. 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 turnover report draw a tight move of -0.19% to $3,215.60 M USD. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) plummed a -178.42% to -112.17%.

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 posted $1,371.30 million in revenues for 2018-Q4, a 114.27% improvement compared to previous quarter. Reported quarter earnings marked $-3,718.40 million with a profit margin of -271.16%. Profit margin plunged a -288.94% compared to previous quarter when profit margin was 17.78%. When comparing revenues to same quarter last year, Mallinckrodt sales marked a tragic decrease and eased a -6.13%. Looking back to recent quarterly results, Mallinckrodt posted 3 negative 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 a stock, it's worth to check its ownership structure.

Mallinckrodt shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.20% of all shares.

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

For a better context understanding, the following table shows ownership data compared to other related stocks:

MNKGEJNJMYLTEVA
Market cap$205.0 M$82.2 B$343.5 B$10.8 B$8.2 B
Total shares84.0 M8,730.0 M2,640.0 M515.9 M1,090.0 M
Float shares83.1 M8,710.0 M2,630.0 M512.7 M1,000.0 M
  - Institutional holdings (%)113.9%58.6%69.2%86.2%63.5%
  - Insider holdings (%)2.2%0.2%0.1%1.1%4.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Mallinckrodt summary

Friday, September 20th, 2019
Open$2.43
Close$2.44
Day range$2.31 - $2.80
Previous close$2.44
Session gain0.00%
Average true range$0.59
50d mov avg$4.86
100d mov avg$7.88
200d mov avg$14.30
Daily patternlt03a
Weekly pattern lb06a

Mallinckrodt performance

To measure stock performance is always good to compare with competitors or related stocks. For Mallinckrodt, the comparison is made against General Electric, , Mylan, Teva Pharmaceutical Industries and Zogenix.
Stock3m6m12m
MNKMallinckrodt-72.80%-88.95%-91.77%
GEGeneral Electric-9.94%-5.42%-19.14%
JNJ-7.74%-3.60%-6.42%
MYLMylan14.63%-26.80%-46.14%
TEVATeva Pharmaceutic...-10.89%-53.89%-69.09%
ZGNXZogenix1.99%-21.33%-15.71%

Mallinckrodt competitors

We picked a few stocks to conform a list of Mallinckrodt competitors to check if you are interested in investing in MNK: