Stryker (NYSE:SYK) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Stryker (NYSE:SYK) from a hold rating to a buy rating in a research report report published on Tuesday morning, Zacks.com reports. They currently have $206.00 target price on the medical technology company’s stock.
According to Zacks, “Stryker 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’s time. 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. However, contraction in gross margin raises concern. Pricing pressure also continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.”
SYK has been the subject of a number of other reports. Royal Bank of Canada upped their price target on Stryker from $184.00 to $204.00 and gave the stock an outperform rating in a report on Monday, March 11th. Wells Fargo & Co upped their price target on Stryker from $214.00 to $219.00 and gave the stock an outperform rating in a report on Monday, April 1st. Piper Jaffray Companies reiterated an overweight rating and set a $205.00 price target on shares of Stryker in a report on Friday, March 1st. Morgan Stanley upped their price target on Stryker from $200.00 to $218.00 and gave the stock an overweight rating in a report on Monday, March 4th. Finally, Barclays set a $203.00 price target on Stryker and gave the stock a buy rating in a report on Friday, March 8th. Six equities research analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company’s stock. The stock has an average rating of Buy and an average price target of $196.75.
Stryker (NYSE:SYK) last posted its earnings results on Tuesday, April 23rd. The medical technology company reported $1.88 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate 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 during the quarter, compared to analyst estimates of $3.51 billion. During the same period in the previous year, the company earned $1.68 EPS. The company’s revenue for the quarter was up 8.5% on a year-over-year basis. Equities analysts expect that Stryker will post 8.15 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 31st. Investors of record on Friday, June 28th will be paid a $0.52 dividend. The ex-dividend date is Thursday, June 27th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.07%. Stryker’s payout ratio is 28.45%.
In other Stryker news, insider Timothy J. Scannell sold 4,666 shares of the company’s stock in a transaction on Thursday, May 16th. The stock was sold at an average price of $186.71, for a total value of $871,188.86. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Glenn S. Boehnlein sold 2,700 shares of the company’s 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 completion of the sale, the chief financial officer now owns 23,333 shares in the company, valued at $4,391,503.93. The disclosure for this sale can be found here. Insiders sold 82,303 shares of company stock valued at $15,947,489 over the last 90 days. 7.20% of the stock is currently owned by corporate insiders.
A number of large investors have recently made changes to their positions in SYK. Oregon Public Employees Retirement Fund grew its position in Stryker by 8,029.5% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 6,075,473 shares of the medical technology company’s stock valued at $39,000 after acquiring an additional 6,000,739 shares during the period. Norges Bank bought a new stake in Stryker in the fourth quarter valued at $474,132,000. BlackRock Inc. grew its position in Stryker by 4.1% in the fourth quarter. BlackRock Inc. now owns 24,882,912 shares of the medical technology company’s stock valued at $3,900,399,000 after acquiring an additional 975,678 shares during the period. FMR LLC grew its position in Stryker by 13.4% in the first quarter. FMR LLC now owns 6,728,182 shares of the medical technology company’s stock valued at $1,328,951,000 after acquiring an additional 793,560 shares during the period. Finally, GQG Partners LLC bought a new stake in Stryker in the fourth quarter valued at $116,175,000. Hedge funds and other institutional investors own 73.61% 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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