Zacks Investment Research Lowers Stryker Corp. (SYK) to Sell
According to Zacks, “We are disappointed with Stryker’s third quarter 2016 guidance. Moreover, China is expected to remain a challenging market for the company for the second half of the year. Further, product supply issues are also expected to impact the Spine business that can drag down top-line growth for the coming quarters. Additionally, intensifying competition is a major headwind. Nevertheless, we believe Stryker’s innovative product pipeline will be a key catalyst in the near term. Growing adoption of MAKO will drive sales in the orthopedic and reconstructive surgery market. However, challenging global economic conditions, fluctuations in foreign currency exchange rates, lower reimbursements, and a strengthening U.S. dollar pose major headwinds to Stryker’s top-line growth in the near term.”
Other research analysts also recently issued reports about the company. Canaccord Genuity restated a buy rating and set a $130.00 price objective on shares of Stryker Corp. in a research report on Sunday, July 24th. JPMorgan Chase & Co. restated a hold rating and set a $119.00 price objective on shares of Stryker Corp. in a research report on Friday, July 22nd. Piper Jaffray Cos. lifted their price objective on Stryker Corp. from $120.00 to $135.00 and gave the stock an overweight rating in a research report on Friday, July 22nd. Credit Suisse Group AG restated an outperform rating and set a $124.00 price objective (up from $110.00) on shares of Stryker Corp. in a research report on Tuesday, July 19th. Finally, Jefferies Group restated a hold rating and set a $120.00 price objective (up from $113.00) on shares of Stryker Corp. in a research report on Monday, July 25th. Four investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and eleven have issued a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $114.91.
Stryker Corp. (NYSE:SYK) opened at 116.41 on Tuesday. The stock’s 50 day moving average price is $114.75 and its 200 day moving average price is $113.41. The stock has a market capitalization of $43.57 billion, a price-to-earnings ratio of 27.44 and a beta of 0.71. Stryker Corp. has a 52-week low of $86.68 and a 52-week high of $123.55.
Stryker Corp. (NYSE:SYK) last posted its quarterly earnings results on Thursday, July 21st. The medical technology company reported $1.39 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.37 by $0.02. Stryker Corp. had a net margin of 15.33% and a return on equity of 23.61%. The company earned $2.84 billion during the quarter, compared to the consensus estimate of $2.79 billion. On average, analysts forecast that Stryker Corp. will post $5.76 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be paid a dividend of $0.38 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $1.52 annualized dividend and a dividend yield of 1.31%. Stryker Corp.’s dividend payout ratio is presently 35.85%.
In related news, Director Ronda E. Stryker sold 6,000 shares of the company’s stock in a transaction on Tuesday, July 12th. The shares were sold at an average price of $122.75, for a total transaction of $736,500.00. Following the completion of the sale, the director now directly owns 193,142 shares of the company’s stock, valued at approximately $23,708,180.50. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Howard E. Cox, Jr. sold 9,448 shares of the company’s stock in a transaction on Monday, August 1st. The stock was sold at an average price of $117.02, for a total transaction of $1,105,604.96. Following the sale, the director now directly owns 554,732 shares of the company’s stock, valued at $64,914,738.64. The disclosure for this sale can be found here. Insiders own 7.80% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the company. LSV Asset Management acquired a new stake in shares of Stryker Corp. during the second quarter worth $107,000. Global X Management Co. LLC boosted its stake in shares of Stryker Corp. by 235.8% in the second quarter. Global X Management Co. LLC now owns 994 shares of the medical technology company’s stock worth $119,000 after buying an additional 698 shares during the period. Carroll Financial Associates Inc. boosted its stake in shares of Stryker Corp. by 78.0% in the second quarter. Carroll Financial Associates Inc. now owns 1,086 shares of the medical technology company’s stock worth $130,000 after buying an additional 476 shares during the period. CWM LLC acquired a new stake in shares of Stryker Corp. during the second quarter worth $150,000. Finally, SevenBridge Financial Group LLC acquired a new stake in shares of Stryker Corp. during the second quarter worth $197,000. 75.49% of the stock is owned by hedge funds and other institutional investors.
About Stryker Corp.
Stryker Corporation (Stryker) is a medical technology company. The Company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Company’s Orthopaedics segment products consist of implants used in hip and knee joint replacements and trauma and surgeries. The Company’s MedSurg segment products consist of surgical equipment and surgical navigation systems (Instruments); endoscopic and communications systems (Endoscopy); patient handling and emergency medical equipment (Medical), and reprocessed and remanufactured medical devices (Sustainability), as well as other medical device products used in a range of medical specialties.
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