PRGO Should I Buy
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Perrigo Company PLC (PRGO) is not a strong buy for a beginner, long-term investor at this moment. While there are some positive insider buying trends and improvements in certain financial metrics, the company's overall performance, technical indicators, and lack of strong trading signals suggest that it is better to hold off on investing until clearer positive catalysts emerge.
The technical indicators for PRGO are mixed. The MACD is positive and expanding, suggesting some bullish momentum, but the RSI is neutral, and the moving averages indicate a bearish trend. The stock is trading below key resistance levels, with support at 9.304 and resistance at 10.262. This indicates limited upward potential in the short term.
Insider buying has increased significantly by 107.21% over the last month, which is a positive sign of confidence from company insiders. Additionally, the company's branded and private label businesses are performing well despite challenges in the infant nutrition segment.
The company has faced a challenging two years, particularly in the infant nutrition business. Financially, revenue has declined by 2.52% YoY in Q4 2025, and gross margin has dropped by 3.72% YoY. Analysts have also lowered their price targets, reflecting cautious sentiment.
In Q4 2025, revenue dropped to $1.11 billion (-2.52% YoY), while net income improved significantly to -$1.42 billion (+3086.74% YoY). EPS also improved to -10.31 (+3121.88% YoY), but gross margin declined to 32.64% (-3.72% YoY). The financial performance shows mixed results, with some improvements but also notable weaknesses.
Analysts have lowered their price targets recently, with JPMorgan reducing it to $15 and Canaccord reducing it to $17. Canaccord maintains a Buy rating, citing strong performance in branded and private label businesses but acknowledges challenges in the infant nutrition segment.
