Sound Income Strategies LLC has increased its ownership in Perrigo Company plc by acquiring an additional 188,767 shares, representing a 35.7% rise in its stake during the third quarter of 2023. Following this purchase, the fund now holds a total of 717,731 shares, valued at approximately $15,467,000, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
This investment is part of a broader trend among institutional investors in the pharmaceutical sector. Other hedge funds have also recently adjusted their positions in Perrigo, with Access Investment Management LLC establishing a new stake valued at around $8.9 million during the second quarter. Additionally, TD Asset Management Inc and Vise Technologies Inc. acquired new shares worth $965,000 and $803,000, respectively, in the same period.
Insider Transactions and Analyst Insights
In related news, Perrigo’s Director Geoffrey M. Parker bought 7,500 shares at an average cost of $14.18 per share on November 12, 2023, amounting to a total investment of $106,350. This transaction increased Parker’s total holdings to 17,375 shares, valued at approximately $246,377.50. Insiders currently own about 0.70% of Perrigo’s stock.
The stock has faced fluctuations, opening at $13.24 on Friday, reflecting a slight decline of 0.5%. With a market capitalization of $1.82 billion, Perrigo has a price-to-earnings ratio of -34.85 and a beta of 0.39. The company’s shares have seen a 52-week low of $12.17 and a high of $30.93.
Performance and Future Outlook
Perrigo recently reported its quarterly earnings, revealing earnings per share of $0.80, surpassing consensus estimates of $0.75 by $0.05. The company generated revenue of $1.04 billion for the quarter, though this fell short of the forecasted $1.10 billion. Compared to the same quarter of 2022, revenue decreased by 4.1%.
Looking ahead, Perrigo has provided guidance for fiscal year 2025, projecting earnings per share between $2.70 and $2.80. Analysts collectively forecast an earnings per share of $2.56 for the current fiscal year.
In addition to these financial updates, Perrigo announced a quarterly dividend of $0.29 per share, which was paid on December 16, 2023. The dividend, applicable to investors of record as of November 28, 2023, reflects an annualized yield of 8.8%. This payout ratio stands at -305.26%, indicating that the company may be reinvesting heavily to foster growth.
Perrigo Company plc operates as a global healthcare supplier, focusing on over-the-counter (OTC) and self-care products alongside generic pharmaceuticals. The company’s diverse product range includes analgesics, vitamins, digestive health remedies, and infant formulas. It is structured into three main segments: Consumer Healthcare, Prescription Pharmaceuticals, and Active Pharmaceutical Ingredients, making it a key partner for retailers and pharmacy chains seeking cost-effective alternatives in the health sector.
