Depomed Inc (NASDAQ:DEPO) issued the following statement in response to the Schedule 13D filed April 7 with the Securities and Exchange Commission by Starboard Value LP(“Starboard”):
Depomed welcomes open communications with its shareholders and values constructive input toward the goal of enhancing shareholder value. Depomed notes that Starboard has not communicated with the Company prior to filing the 13D and has not attempted to hold any discussions with the Company. Depomed’s Board and management are committed to creating value for allDepomed shareholders.
The Depomed Board of Directors recommends that shareholders take no action at this time. (Original Source)
Shares of Depomed jumped nearly 15% to $17.30 in pre-market trading. DEPO has a 1-year high of $33.74 and a 1-year low of $12.25. The stock’s 50-day moving average is $14.96 and its 200-day moving average is $17.31.
On the ratings front, Depomed has been the subject of a number of recent research reports. In a report released today, Mizuho analyst Irina Rivkind Koffler reiterated a Hold rating on DEPO, with a price target of $14, which implies a downside of 6.7% from current levels. Separately, on April 1, Roth Capital’s Scott Henry assigned a Buy rating to the stock and has a price target of $26.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler and Scott Henry have a total average return of 28.8% and 0.2% respectively. Koffler has a success rate of 57.1% and is ranked #10 out of 3780 analysts, while Henry has a success rate of 38.6% and is ranked #2073.
The street is mostly Bullish on DEPO stock. Out of 8 analysts who cover the stock, 6 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $20.50, which implies an upside of 36.7% from current levels.
Depomed, Inc. manufactures and distributes pharmaceutical products. It is a pharmaceutical company, which focuses on the pain and other central nervous system conditions. The company product brands include Gralise, Zipsor, Lazanda, CAMBIA, NUCYNTA ER and NUCYNTA. It has developed and licensed a drug-delivery technology, Acuform. The company was founded by John W. Shell on August 7, 1995 and is headquartered in Newark, CA.