Zacks Investment Research cut shares of Patterson Cos. (NASDAQ:PDCO) from a hold rating to a sell rating in a report issued on Wednesday.
According to Zacks, “The Patterson Companies reported impressive first-quarter fiscal 2017 results with strong year-over-year growth in earnings and revenues. Notably, the management reaffirmed its previously issued guidance for fiscal 2017. We remain particularly upbeat about the growth prospects of the company’s Animal Health segment. Livestock end markets had a significant contribution to the Animal Health growth in the reported quarter. We believe, the divestiture of Patterson Medical is also expected to help the company focus on its core business segments and propel better growth in the long run. However unfavorable foreign exchange rate, higher operating expenses and accelerating debt are the major concerns at present for the company.”
A number of other analysts also recently weighed in on the stock. Off Wall Street initiated coverage on shares of Patterson Cos. in a research report on Monday, August 8th. They issued a sell rating on the stock. Bank of America Corp. started coverage on shares of Patterson Cos. in a report on Wednesday, August 24th. They set an underperform rating and a $44.00 target price on the stock. Credit Suisse Group AG restated a buy rating and set a $55.00 target price on shares of Patterson Cos. in a report on Monday, June 27th. Stifel Nicolaus restated a hold rating on shares of Patterson Cos. in a report on Tuesday, May 31st. Finally, Robert W. Baird restated a neutral rating and set a $49.00 target price (down from $51.00) on shares of Patterson Cos. in a report on Friday, August 26th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and two have issued a buy rating to the company. Patterson Cos. presently has an average rating of Hold and an average price target of $48.40.
Patterson Cos. (NASDAQ:PDCO) traded up 1.06% during mid-day trading on Wednesday, hitting $45.81. 207,801 shares of the company traded hands. The company’s 50-day moving average price is $46.71 and its 200 day moving average price is $46.42. Patterson Cos. has a one year low of $38.51 and a one year high of $50.40. The company has a market capitalization of $4.37 billion, a price-to-earnings ratio of 22.59 and a beta of 0.88.
Patterson Cos. (NASDAQ:PDCO) last announced its quarterly earnings results on Thursday, August 25th. The company reported $0.51 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.51. The business had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.35 billion. Patterson Cos. had a net margin of 3.52% and a return on equity of 17.42%. Patterson Cos.’s revenue for the quarter was up 15.7% on a year-over-year basis. During the same period last year, the company posted $0.47 EPS. On average, analysts anticipate that Patterson Cos. will post $2.64 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Friday, October 14th will be paid a dividend of $0.24 per share. The ex-dividend date is Wednesday, October 12th. This represents a $0.96 annualized dividend and a dividend yield of 2.12%. Patterson Cos.’s payout ratio is 47.29%.
In other news, insider Ann B. Gugino sold 750 shares of the stock in a transaction on Monday, August 29th. The stock was sold at an average price of $46.22, for a total transaction of $34,665.00. Following the completion of the transaction, the insider now owns 40,153 shares in the company, valued at approximately $1,855,871.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.46% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Nomura Asset Management Co. Ltd. increased its position in Patterson Cos. by 7.9% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 27,250 shares of the company’s stock valued at $1,232,000 after buying an additional 2,000 shares during the last quarter. Norges Bank purchased a new position in Patterson Cos. during the fourth quarter valued at $49,779,000. Chevy Chase Trust Holdings Inc. increased its position in Patterson Cos. by 3.1% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 70,473 shares of the company’s stock valued at $3,280,000 after buying an additional 2,098 shares during the last quarter. Alpha Windward LLC increased its position in Patterson Cos. by 0.6% in the first quarter. Alpha Windward LLC now owns 9,730 shares of the company’s stock valued at $453,000 after buying an additional 60 shares during the last quarter. Finally, Quantitative Systematic Strategies LLC purchased a new position in Patterson Cos. during the first quarter valued at $413,000. Institutional investors own 77.21% of the company’s stock.
About Patterson Cos.
Patterson Companies, Inc is a distributor serving the dental, veterinary and rehabilitation supply markets. The Company operates through three segments: dental supply, veterinary supply and rehabilitation supply. The dental supply segment provides a range of consumable dental products, clinical and laboratory equipment, and value-added services to dentists, dental laboratories, institutions and other dental healthcare providers across North America.