Weiss Ratings Reiterates Hold Rating for Phibro Animal Health Shares

Weiss Ratings has reaffirmed its Hold (C) rating for shares of Phibro Animal Health Corporation (NASDAQ: PAHC), according to a research report released on Tuesday. This decision comes amid a flurry of recent activity surrounding the company’s stock, with several other financial institutions also issuing updates on their ratings.

On July 7, 2023, JPMorgan Chase & Co. upgraded Phibro’s rating from “neutral” to “overweight,” raising the price target from $25.00 to $35.00. Following this, Zacks Research also raised its rating from “hold” to “strong-buy” on September 29, 2023. Additionally, BNP Paribas Exane adjusted its stance from “underperform” to “neutral,” with a price target of $24.00 in mid-June. Morgan Stanley, on August 28, 2023, set a target price of $34.00 for Phibro shares.

Currently, the consensus among analysts is a Hold rating, with a target price averaging $28.40. Among the analysts covering the stock, one has given a Strong Buy rating, one a Buy rating, and four have opted for a Hold rating, while two have assigned Sell ratings.

Phibro Animal Health reported its latest earnings on August 27, 2023. The company achieved earnings per share (EPS) of $0.57, exceeding analysts’ expectations of $0.52 by $0.05. The firm recorded a net margin of 3.73% and a return on equity of 32.14%. Revenue for the quarter reached $378.70 million, surpassing the consensus estimate of $362.24 million. Looking ahead, Phibro has set its fiscal year 2026 guidance at EPS between $2.520 and $2.700. Analysts project that Phibro will report $1.95 in earnings per share for the current year.

In addition to the financial updates, Phibro Animal Health announced a quarterly dividend of $0.12 per share, paid on September 24, 2023. Investors of record on September 3, 2023, received this dividend, which translates to an annualized dividend of $0.48 and a yield of 1.2%. The company’s payout ratio currently stands at 40.68%.

In terms of insider activity, CEO Jack Bendheim sold 14,080 shares of the company on September 9, 2023, at an average price of $40.33, resulting in a total transaction value of $567,846.40. After this sale, Bendheim retains 45,400 shares, worth approximately $1,830,982. Over the past 90 days, insiders have sold a total of 24,622 shares valued at $995,893, and currently, insiders hold 50.13% of the stock.

Institutional investors have shown notable activity as well. Hedge funds have recently adjusted their holdings in Phibro Animal Health. For instance, JPMorgan Chase & Co. increased its stake by 2.9% during the second quarter, owning 13,005 shares valued at $332,000. Other notable increases include MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., which grew its position by 4.7%, and Prospera Financial Services Inc., which increased its holdings by 3.6%.

Overall, hedge funds and other institutional investors now hold 99.34% of Phibro’s shares, reflecting a strong confidence in the company’s future potential. Phibro Animal Health continues to operate in the animal health and mineral nutrition sectors across various regions, including the United States, Israel, Brazil, and Ireland, offering a range of products for livestock and companion animals. The company remains committed to its growth strategy while navigating the complexities of the global market.