Stryker (SYK) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of Stryker (NYSE:SYK) from a hold rating to a buy rating in a research note issued to investors on Wednesday. They currently have $191.00 price objective on the medical technology company’s stock.
According to Zacks, “Stryker outperformed the industry in a year’s time. Continued demand for the Mako Total Knee Platform and a diversified product portfolio have consistently driven the company’s growth. The company’s high domestic and international growth in revenues also buoy optimism. A strong guidance for the second quarter and full year holds promise. Moreover, surging operating margins reflect the company’s bullish prospects. Stryker’s acquisition-driven strategy is expected to boost growth by expanding existing product offerings across all business segments, while an enhanced international presence should bolster its global hold. However, supply issues in the Puerto Rico facility and a declining gross margin raise concern. Furthermore, the recall of the Oral Care lineup is a major drawback. The company is currently being plagued by foreign currency volatility and reduced demand for healthcare products.”
Several other research analysts also recently issued reports on SYK. Cantor Fitzgerald reaffirmed a hold rating and set a $170.00 price objective on shares of Stryker in a report on Wednesday, June 13th. ValuEngine downgraded Stryker from a buy rating to a hold rating in a report on Tuesday, June 12th. Citigroup upped their price objective on Stryker from $166.00 to $171.00 and gave the stock a neutral rating in a report on Tuesday, May 1st. Canaccord Genuity upped their price objective on Stryker from $176.00 to $185.00 and gave the stock a buy rating in a report on Friday, April 27th. Finally, BMO Capital Markets upped their price objective on Stryker to $170.00 and gave the stock a market perform rating in a report on Friday, April 27th. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and fifteen have assigned a buy rating to the company. Stryker currently has an average rating of Buy and a consensus price target of $171.70.
Stryker (NYSE:SYK) last announced its earnings results on Thursday, April 26th. The medical technology company reported $1.68 EPS for the quarter, topping the consensus estimate of $1.60 by $0.08. The business had revenue of $3.24 billion for the quarter, compared to the consensus estimate of $3.20 billion. Stryker had a return on equity of 25.65% and a net margin of 8.00%. Stryker’s revenue was up 9.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.48 EPS. sell-side analysts expect that Stryker will post 7.23 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 31st. Investors of record on Friday, June 29th will be given a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a dividend yield of 1.09%. The ex-dividend date of this dividend is Thursday, June 28th. Stryker’s dividend payout ratio is currently 28.97%.
In related news, VP Katherine Ann Owen sold 2,651 shares of the company’s stock in a transaction on Wednesday, April 18th. The shares were sold at an average price of $165.00, for a total value of $437,415.00. Following the completion of the sale, the vice president now owns 7,729 shares in the company, valued at approximately $1,275,285. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Lonny J. Carpenter sold 5,000 shares of the company’s stock in a transaction on Friday, May 4th. The shares were sold at an average price of $166.42, for a total transaction of $832,100.00. Following the completion of the sale, the insider now owns 101,675 shares of the company’s stock, valued at approximately $16,920,753.50. The disclosure for this sale can be found here. In the last 90 days, insiders sold 8,504 shares of company stock valued at $1,405,995. 7.40% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in SYK. River Wealth Advisors LLC boosted its stake in shares of Stryker by 1.1% during the 1st quarter. River Wealth Advisors LLC now owns 29,300 shares of the medical technology company’s stock worth $4,715,000 after buying an additional 309 shares during the last quarter. Mogy Joel R Investment Counsel Inc. boosted its stake in shares of Stryker by 0.4% during the 1st quarter. Mogy Joel R Investment Counsel Inc. now owns 86,568 shares of the medical technology company’s stock worth $13,931,000 after buying an additional 325 shares during the last quarter. Altavista Wealth Management Inc. boosted its stake in shares of Stryker by 1.0% during the 1st quarter. Altavista Wealth Management Inc. now owns 35,165 shares of the medical technology company’s stock worth $5,659,000 after buying an additional 361 shares during the last quarter. Rehmann Capital Advisory Group boosted its stake in shares of Stryker by 7.8% during the 4th quarter. Rehmann Capital Advisory Group now owns 5,306 shares of the medical technology company’s stock worth $822,000 after buying an additional 385 shares during the last quarter. Finally, Thrivent Financial For Lutherans boosted its stake in shares of Stryker by 2.4% during the 4th quarter. Thrivent Financial For Lutherans now owns 17,092 shares of the medical technology company’s stock worth $2,646,000 after buying an additional 398 shares during the last quarter. Institutional investors and hedge funds own 74.91% of the company’s stock.
Stryker Corporation operates as a medical technology company. The company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries. The MedSurg segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical devices for use in various medical specialties.
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