Mallinckrodt Public Limited Company (MNK): Alive and Kicking?

If you can handle volatility, Mallinckrodt Public Limited Company (NYSE:MNK) is the stock to watch now. The stock closed higher on 28 February. The shares accumulated 0.48 points or 1.96 percent at $24.96 with a heavy trade volume of 2.462 million shares. After opening the session at $24.33, the shares went as high as $25.36 and as low as $24.2, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.08 billion and now has 83.2 million shares outstanding. Mallinckrodt Public Limited Company (MNK) stock has gained 17.46 percent of market value in 21 trading days.

MNK stock has a trailing 3-year beta of 2.24, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $12.84 a share in the trailing twelve months. The stock’s value has surged 57.97 percent year to date (YTD) against a rise of 33.76 percent in 12 month’s time. The company’s shares still trade -31.9 percent away from its 1-year high of $36.65 and 114.25 percent up from 52-week low of $11.65. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Mallinckrodt Public Limited Company (MNK) will probably climb 16.47 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $42-month high price target. This represents a whopping 68.27 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $28, which represents a return potential of 12.18 percent when compared to the closing price of the stock of $24.96 on Thursday, February 28. The lowest price target for the stock is $14 — slightly more than -43.91 percent from MNK’s current share price.

History has shown that shares in Mallinckrodt Public Limited Company have gone up on 11 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. Investors will get their next glimpse of MNK’s Q1 earnings on May 07. Analysts are forecasting revenue to climb 25.1 percent to $716M in the fiscal first quarter, while earnings are seen soaring by nearly 24.43 percent to $1.63 per share. It earned $2.18 per share, better than the $1.92, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $835M, better than the $637M analysts expected. Earnings are estimated to increase by 902.6 percent this year, 3.72 percent next year and continue to increase by 9.17 percent annually for the next 5 years.

Let’s take a look at some insider activity at Mallinckrodt Public Limited Company (NYSE:MNK) and see the pattern. The earliest insider trade took place on 12/10/2018. Trudeau Mark gathered a total of 1 thousand shares of company at average share price of $20.18. The total for the purchase was set at $20.18 thousand. After this transaction, the President and CEO account balance stood at 236.25 thousand shares. The stock grew 21.31 percent since that insider purchase. On 05/16/2018, Trudeau Mark, President and CEO, purchased 3 thousand shares at a price per share of $15.54. This added 46.62 thousand shares to the insider’s fortune and the stock saw a 57.53 percent rally in value since the news became public. This transaction left 269.96 thousand shares in the President and CEO account.

On 05/09/2018, Flynn James E performed a sale transaction worth $4.19 million. This sale at $13.39 each has eliminated 312.93 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 82.82 percent increase since the transaction was reported. The insider now is left with 8.31 million shares remaining in the account. Youngblood Dr Kneeland, who performs the Director job, bought 4.56 thousand shares for $100.05 thousand. The acquisition occurred on 11/28/2017 was priced at $21.94 per share. The share price soared 11.58 percent since the reporting date. Youngblood Dr Kneeland now left with a stake of 19.79 thousand MNK stock worth $493.93 thousand after the insider buying.

The stock is currently hovering around the first support level of $24.32. Below this, the next support is placed in the zone of $23.68. Till the time, the MNK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 74.82 on daily chart, which may remain a cause for concern. If the price breaks below $23.68 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $25.48 mark may result into a pull-back move towards $26 level.

Further, it is sporting a 0.79 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.12. 50.4 percent is the gross profit margin for Mallinckrodt Public Limited Company and operating margin sits at 6.2 percent. Along with this, the net profit margin is 65.2 percent.