Stryker (SYK) Downgraded by Zacks Investment Research to Sell

Stryker (NYSE:SYK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Saturday.

According to Zacks, “Despite trading above the broader industry in the last year, Stryker has been grappling with supply side issues in its spine business since long. Adding to our concerns, Stryker announced the voluntary product recall of the Oral Care lineup. The recall is likely to adversely impact the company’s sales and operating income. Moreover, volatility in foreign currency exchange is likely to impede Stryker’s growth in the coming quarters. On a brighter note, solid performance in the MAKO platform has been boosting Stryker’s revenues since long. An upbeat guidance for the full year instills investor confidence on the stock. Stryker’s acquisition-driven strategy is expected to expand existing product offerings across all business segments. Continued strong demand for hemorrhagic and ischemic stroke products and neuro-powered instruments are also likely to boost sales in the neurotechnology segment.”

Several other brokerages have also issued reports on SYK. Piper Jaffray Companies raised their price target on shares of Stryker from $156.00 to $166.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 9th. Royal Bank of Canada restated a “buy” rating and set a $175.00 price target on shares of Stryker in a research note on Tuesday, January 9th. Cowen set a $166.00 price target on shares of Stryker and gave the stock a “buy” rating in a research note on Sunday, October 29th. Needham & Company LLC restated a “hold” rating on shares of Stryker in a research note on Wednesday. Finally, Cantor Fitzgerald restated a “neutral” rating and set a $163.00 price target on shares of Stryker in a research note on Friday, January 5th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and thirteen have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $156.60.

Stryker (NYSE SYK) traded up $1.00 during trading hours on Friday, reaching $161.28. 1,191,723 shares of the company’s stock traded hands, compared to its average volume of 1,090,000. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.61 and a current ratio of 2.37. The stock has a market cap of $60,360.00, a price-to-earnings ratio of 34.39, a price-to-earnings-growth ratio of 2.30 and a beta of 0.78. Stryker has a 52-week low of $119.17 and a 52-week high of $164.20.

Stryker (NYSE:SYK) last posted its quarterly earnings data on Thursday, October 26th. The medical technology company reported $1.52 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.50 by $0.02. Stryker had a net margin of 14.67% and a return on equity of 24.11%. The firm had revenue of $3.01 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same quarter last year, the business posted $1.39 EPS. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. analysts expect that Stryker will post 6.49 earnings per share for the current year.

In related news, insider Lonny J. Carpenter sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, November 3rd. The shares were sold at an average price of $155.34, for a total value of $776,700.00. Following the completion of the transaction, the insider now directly owns 83,207 shares of the company’s stock, valued at approximately $12,925,375.38. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 7.40% of the stock is currently owned by company insiders.

A number of large investors have recently made changes to their positions in SYK. Beach Investment Management LLC. bought a new position in Stryker in the 2nd quarter valued at $1,924,000. Canandaigua National Bank & Trust Co. raised its position in shares of Stryker by 9.5% during the 2nd quarter. Canandaigua National Bank & Trust Co. now owns 7,169 shares of the medical technology company’s stock valued at $995,000 after buying an additional 623 shares in the last quarter. Boys Arnold & Co. Inc. raised its position in shares of Stryker by 1.0% during the 2nd quarter. Boys Arnold & Co. Inc. now owns 18,373 shares of the medical technology company’s stock valued at $2,550,000 after buying an additional 184 shares in the last quarter. Robeco Institutional Asset Management B.V. raised its position in shares of Stryker by 10.4% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 109,515 shares of the medical technology company’s stock valued at $15,199,000 after buying an additional 10,272 shares in the last quarter. Finally, Andra AP fonden raised its position in shares of Stryker by 55.9% during the 2nd quarter. Andra AP fonden now owns 167,900 shares of the medical technology company’s stock valued at $23,301,000 after buying an additional 60,200 shares in the last quarter. 74.88% of the stock is owned by hedge funds and other institutional investors.

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About Stryker

Stryker Corporation is a medical technology company. The Company offers a range of medical technologies, including orthopedic, medical and surgical, and neurotechnology and spine products. The Company’s segments include Orthopaedics; MedSurg; Neurotechnology and Spine, and Corporate and Other. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems and other related products.

Analyst Recommendations for Stryker (NYSE:SYK)

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