Lifecore Biomedical (NASDAQ:LFCR) Stock Rating Lowered by Craig Hallum

Lifecore Biomedical (NASDAQ:LFCR) was downgraded by stock analysts at Craig Hallum from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, Zacks reports.

Other analysts have also issued reports about the stock. Zacks Research raised shares of Lifecore Biomedical from a “strong sell” rating to a “hold” rating in a research note on Wednesday, July 29th. William Blair lowered Lifecore Biomedical from an “outperform” rating to a “hold” rating in a research report on Monday. Barrington Research downgraded shares of Lifecore Biomedical from an “outperform” rating to a “hold” rating in a research report on Tuesday. Weiss Ratings raised shares of Lifecore Biomedical from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, September 9th. Finally, Wall Street Zen raised Lifecore Biomedical from a “sell” rating to a “hold” rating in a research note on Saturday, June 6th. Four research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $6.50.

Lifecore Biomedical Price Performance

LFCR opened at $6.59 on Monday. Lifecore Biomedical has a 1-year low of $3.63 and a 1-year high of $8.98. The company has a market capitalization of $249.43 million, a price-to-earnings ratio of -6.16 and a beta of 1.08. The business has a 50 day moving average price of $4.54 and a two-hundred day moving average price of $4.77.

Lifecore Biomedical (NASDAQ:LFCR) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.19) EPS for the quarter, hitting the consensus estimate of ($0.19). The business had revenue of $34.17 million during the quarter, compared to the consensus estimate of $34.18 million. Equities analysts expect that Lifecore Biomedical will post -1.02 EPS for the current fiscal year.

Institutional Investors Weigh In On Lifecore Biomedical

A number of hedge funds have recently bought and sold shares of LFCR. DCF Advisers LLC acquired a new stake in shares of Lifecore Biomedical in the second quarter valued at about $2,229,000. BlackRock Inc. bought a new position in shares of Lifecore Biomedical in the second quarter worth about $10,569,000. Tocqueville Asset Management L.P. acquired a new position in shares of Lifecore Biomedical during the 2nd quarter worth about $796,000. Squarepoint Ops LLC lifted its position in shares of Lifecore Biomedical by 76.8% during the 2nd quarter. Squarepoint Ops LLC now owns 92,674 shares of the company’s stock worth $487,000 after purchasing an additional 40,270 shares during the last quarter. Finally, Bank of America Corp DE bought a new stake in Lifecore Biomedical during the 2nd quarter valued at approximately $195,000. 83.36% of the stock is currently owned by institutional investors.

More Lifecore Biomedical News

Here are the key news stories impacting Lifecore Biomedical this week:

• Positive Sentiment: Acquisition provides a defined cash value and potential upside. Webster Equity Partners will acquire Lifecore for $6.28 per common share in cash, a 49.5% premium to the unaffected price. Shareholders will also receive non-tradable contingent value rights (CVRs) tied to performance milestones, with potential aggregate payments of up to $160 million and total consideration of as much as $9.67 per common equivalent. The transaction is valued at up to approximately $663.7 million and is expected to support Lifecore’s growth objectives. Lifecore Biomedical to Be Acquired by Webster Equity Partners
• Neutral Sentiment: Merger-related trading is likely limiting fundamental valuation signals. With the company expected to become privately held, investors are focusing primarily on deal completion, the $6.28 cash consideration and the value—and uncertainty—of the CVRs rather than on longer-term earnings prospects. Lifecore’s stock has recently traded around the transaction terms, with the CVRs creating potential additional value but no guaranteed payment. Lifecore agrees to acquisition with CVRs up to $160 million
• Negative Sentiment: Analysts are turning more cautious. Craig Hallum downgraded Lifecore from “strong buy” to “hold,” while William Blair lowered its rating from “outperform” to “hold” or “market perform.” The revisions likely reflect limited upside to the cash offer and the uncertainty surrounding completion of the acquisition. William Blair Downgrades Lifecore Biomedical to Market Perform
• Negative Sentiment: Shareholder investigations add deal risk. Several law firms are examining whether Lifecore’s board obtained a fair price, conducted an adequate sale process and properly protected shareholders. These reviews could create legal costs, delay the transaction or encourage changes to the deal terms, although they do not necessarily indicate wrongdoing. Brodsky and Smith shareholder investigation

About Lifecore Biomedical

Lifecore Biomedical, Inc is a contract development and manufacturing organization (CDMO) that provides services to pharmaceutical, biotechnology and medical device companies. The company specializes in complex sterile injectable products and supports customers through product development, process development, manufacturing, aseptic filling, packaging and related regulatory services.

Lifecore’s capabilities include the production of injectable products using fermentation and other specialized manufacturing processes.