Stryker (SYK) Downgraded by Zacks Investment Research
According to Zacks, “Stryker exited the first quarter of 2019 on a solid note, with earnings surpassing the consensus mark and revenues increasing on a year-over-year basis. The company continues to gain from its core MedSurg unit which put up a strong show in the reported quarter. Additionally, strength in flagship Mako platform continues to favor the company. Moreover, its K2M acquisition drove the core Neurotechnology & Spine unit in the quarter under review. Solid international growth also buoys optimism. Expansion in operating margin is a positive while strong outlook for 2019 is indicative of bright prospects. Stryker has outperformed the industry in a year. However, contraction in gross margin raises concern. Additionally, revenues in the first quarter were impacted by unfavorable foreign currency movement. Pricing pressure also continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.”
Several other equities analysts have also recently issued reports on SYK. Credit Suisse Group raised Stryker to an “outperform” rating in a research report on Thursday, January 31st. JPMorgan Chase & Co. upped their price objective on Stryker from $200.00 to $215.00 and gave the company an “overweight” rating in a research report on Tuesday, March 19th. ValuEngine cut Stryker from a “buy” rating to a “hold” rating in a research report on Thursday, April 18th. Canaccord Genuity upped their price objective on Stryker from $190.00 to $195.00 and gave the company a “buy” rating in a research report on Wednesday, April 24th. Finally, Barclays set a $203.00 price objective on Stryker and gave the company a “buy” rating in a research report on Friday, March 8th. Seven analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $196.89.
Stryker (NYSE:SYK) last issued its quarterly earnings results on Tuesday, April 23rd. The medical technology company reported $1.88 EPS for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04. Stryker had a return on equity of 26.72% and a net margin of 25.38%. The firm had revenue of $3.52 billion for the quarter, compared to analysts’ expectations of $3.51 billion. During the same period in the previous year, the firm posted $1.68 EPS. The business’s revenue for the quarter was up 8.5% compared to the same quarter last year. As a group, analysts forecast that Stryker will post 8.15 earnings per share for the current fiscal year.
In other news, VP Bijoy Sagar sold 2,000 shares of the stock in a transaction on Monday, May 6th. The stock was sold at an average price of $190.43, for a total transaction of $380,860.00. Following the transaction, the vice president now directly owns 3,350 shares of the company’s stock, valued at approximately $637,940.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Glenn S. Boehnlein sold 2,700 shares of the stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $188.21, for a total value of $508,167.00. Following the transaction, the chief financial officer now directly owns 23,333 shares in the company, valued at $4,391,503.93. The disclosure for this sale can be found here. Insiders have sold a total of 111,550 shares of company stock worth $21,374,171 over the last three months. Insiders own 7.20% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Welch Group LLC increased its stake in shares of Stryker by 1.5% in the 1st quarter. Welch Group LLC now owns 3,774 shares of the medical technology company’s stock worth $745,000 after purchasing an additional 54 shares in the last quarter. Independence Bank of Kentucky increased its stake in shares of Stryker by 4.9% in the 1st quarter. Independence Bank of Kentucky now owns 1,180 shares of the medical technology company’s stock worth $233,000 after purchasing an additional 55 shares in the last quarter. Benedict Financial Advisors Inc. increased its stake in shares of Stryker by 1.1% in the 1st quarter. Benedict Financial Advisors Inc. now owns 5,235 shares of the medical technology company’s stock worth $1,034,000 after purchasing an additional 57 shares in the last quarter. Berman Capital Advisors LLC increased its stake in shares of Stryker by 11.1% in the 1st quarter. Berman Capital Advisors LLC now owns 571 shares of the medical technology company’s stock worth $112,000 after purchasing an additional 57 shares in the last quarter. Finally, 1ST Source Bank increased its stake in shares of Stryker by 3.5% in the 1st quarter. 1ST Source Bank now owns 1,760 shares of the medical technology company’s stock worth $348,000 after purchasing an additional 60 shares in the last quarter. 74.71% of the stock is currently owned by hedge funds and other institutional investors.
Stryker Company Profile
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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