Patterson Cos. (NASDAQ:PDCO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “We remain particularly upbeat about the growth prospects of The Patterson Companies’ Animal Health segment and the recently formed a partnership with Heartland Dental, a significant positive to strengthen the company’s dental business. Additionally Patterson offers a wide range of consumable supplies, equipment, software, and value-added services to its customers, which is likely to enhance the company’s growth trajectory for the long haul. However unfavorable foreign exchange rate, higher operating expenses and accelerating debt are the major concerns at present for the company. Additionally, the U.S. dental products distribution industry is highly competitive and poises a major threat for Patterson. Meanwhile, a glimpse on the estimate trends reveals that estimates are stable for the current year, before the company’s earnings release of second-quarter of fiscal 2017.”
PDCO has been the subject of a number of other reports. Credit Suisse Group AG reiterated a “buy” rating and set a $55.00 price objective on shares of Patterson Cos. in a report on Monday, June 27th. Evercore ISI reiterated a “hold” rating and set a $48.00 price objective (down from $49.00) on shares of Patterson Cos. in a report on Friday, August 26th. Bank of America Corp. initiated coverage on Patterson Cos. in a report on Wednesday, August 24th. They set an “underperform” rating and a $44.00 price objective for the company. Off Wall Street initiated coverage on Patterson Cos. in a report on Monday, August 8th. They set a “sell” rating for the company. Finally, Jefferies Group reiterated a “hold” rating on shares of Patterson Cos. in a report on Thursday, August 4th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $48.40.
Patterson Cos. (NASDAQ:PDCO) opened at 44.41 on Thursday. The stock’s 50 day moving average price is $45.91 and its 200-day moving average price is $46.59. Patterson Cos. has a one year low of $38.51 and a one year high of $50.40. The firm has a market capitalization of $4.24 billion, a price-to-earnings ratio of 21.90 and a beta of 0.94.
Patterson Cos. (NASDAQ:PDCO) last posted its quarterly earnings data on Thursday, August 25th. The company reported $0.51 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.51. The business earned $1.32 billion during the quarter, compared to the consensus estimate of $1.35 billion. Patterson Cos. had a return on equity of 17.42% and a net margin of 3.52%. Patterson Cos.’s quarterly revenue was up 15.7% on a year-over-year basis. During the same period last year, the company earned $0.47 earnings per share. On average, equities research analysts expect that Patterson Cos. will post $2.67 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Friday, October 14th will be paid a $0.24 dividend. The ex-dividend date is Wednesday, October 12th. This represents a $0.96 dividend on an annualized basis and a yield of 2.16%. Patterson Cos.’s dividend payout ratio is 47.29%.
In other Patterson Cos. news, insider Ann B. Gugino sold 750 shares of the firm’s stock in a transaction that occurred on Monday, August 29th. The stock was sold at an average price of $46.22, for a total value of $34,665.00. Following the completion of the transaction, the insider now directly owns 40,153 shares in the company, valued at $1,855,871.66. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.46% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in Patterson Cos. by 1.6% in the second quarter. Vanguard Group Inc. now owns 7,763,526 shares of the company’s stock worth $371,795,000 after buying an additional 122,202 shares in the last quarter. Parnassus Investments CA boosted its stake in Patterson Cos. by 11.4% in the second quarter. Parnassus Investments CA now owns 7,055,974 shares of the company’s stock worth $337,911,000 after buying an additional 724,258 shares during the last quarter. BlackRock Fund Advisors boosted its stake in Patterson Cos. by 11.1% in the second quarter. BlackRock Fund Advisors now owns 2,824,202 shares of the company’s stock worth $135,251,000 after buying an additional 281,383 shares during the last quarter. Wellington Management Group LLP boosted its stake in Patterson Cos. by 3.5% in the first quarter. Wellington Management Group LLP now owns 2,801,575 shares of the company’s stock worth $130,358,000 after buying an additional 94,184 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. boosted its stake in Patterson Cos. by 2.9% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,626,361 shares of the company’s stock worth $122,205,000 after buying an additional 72,962 shares during the last quarter. Hedge funds and other institutional investors own 77.29% 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.