Zacks Investment Research downgraded shares of Patterson Companies (NASDAQ:PDCO) from a hold rating to a sell rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Patterson Companies underperformed the S&P 500 index over the past six months. Persistent declines in Patterson Companies' Dental segment revenues is a headwind for the company at the moment. Patterson Companies also witnessed year-over-year decline in its bottom line in recent times. Apart from these, cutthroat competition in the MedTech space is likely to affect the company's customer base. Contraction in gross margins adds to the woes. On the positive side, Patterson Companies continues to gain from its core Animal Health segment that has been performing well lately. Patterson Companies also provides a wide range of consumable supplies, equipment, software and value-added services. A broad spectrum of products cushions the company against economic downturns in the MedTech space. We believe that a diverse product portfolio, strong veterinary business prospects, accretive acquisitions and strategic partnerships are key catalysts.”
A number of other brokerages also recently commented on PDCO. ValuEngine downgraded shares of Patterson Companies from a hold rating to a sell rating in a research note on Friday, February 8th. UBS Group started coverage on shares of Patterson Companies in a research note on Thursday, January 17th. They set a neutral rating and a $23.00 target price for the company. Finally, BidaskClub upgraded shares of Patterson Companies from a buy rating to a strong-buy rating in a research note on Friday, February 8th. Seven equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $22.29.
Shares of PDCO stock traded up $0.60 on Wednesday, reaching $23.15. 2,189,630 shares of the stock were exchanged, compared to its average volume of 717,146. The company has a current ratio of 1.76, a quick ratio of 0.94 and a debt-to-equity ratio of 0.51. The company has a market cap of $2.13 billion, a P/E ratio of 13.78, a PEG ratio of 2.81 and a beta of 1.35. Patterson Companies has a twelve month low of $18.94 and a twelve month high of $26.60.
Patterson Companies (NASDAQ:PDCO) last issued its earnings results on Thursday, February 28th. The company reported $0.38 EPS for the quarter, hitting analysts’ consensus estimates of $0.38. Patterson Companies had a net margin of 2.80% and a return on equity of 8.78%. During the same quarter in the prior year, the company earned $0.43 earnings per share. On average, equities analysts forecast that Patterson Companies will post 1.43 EPS for the current year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. boosted its stake in Patterson Companies by 4.9% in the fourth quarter. BlackRock Inc. now owns 9,795,267 shares of the company’s stock valued at $192,575,000 after acquiring an additional 453,803 shares in the last quarter. Vanguard Group Inc boosted its stake in Patterson Companies by 1.7% in the third quarter. Vanguard Group Inc now owns 7,665,535 shares of the company’s stock valued at $187,422,000 after acquiring an additional 129,571 shares in the last quarter. Vanguard Group Inc. boosted its stake in Patterson Companies by 1.7% in the third quarter. Vanguard Group Inc. now owns 7,665,535 shares of the company’s stock valued at $187,422,000 after acquiring an additional 129,571 shares in the last quarter. FMR LLC boosted its stake in Patterson Companies by 100.5% in the second quarter. FMR LLC now owns 4,692,969 shares of the company’s stock valued at $106,389,000 after acquiring an additional 2,352,041 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in Patterson Companies by 36.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,085,525 shares of the company’s stock valued at $60,662,000 after acquiring an additional 822,221 shares in the last quarter.
About Patterson Companies
Patterson Companies, Inc distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada. It operates through Dental and Animal Health segments. The company's Dental segment offers consumable products, such as infection control, restorative materials, hand instruments, and sterilization products; basic and advanced technology dental equipment; patient education systems; and office forms and stationery.
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