Zacks Investment Research Downgrades CONMED (CNMD) to Hold

Zacks Investment Research downgraded shares of CONMED (NASDAQ:CNMD) from a buy rating to a hold rating in a research report report published on Tuesday morning.

According to Zacks, “CONMED outperformed the industry in a year’s time. Strong performances by Advanced Surgical and Endoscopic Technologies consistently drive the company’s top-line. We are also upbeat about the continued innovation undertaken by the company to enhance its R&D stature. Solid revenue guidance is indicative of brighter prospects. CONMED is also benefiting from the increasing trend of using minimally invasive techniques as a large percentage of the company’s products are designed for these procedures. However, CONMED operates in a highly competitive environment, especially in the General Surgery business. Lower healthcare spending buoyed by the foreign exchange volatility is a headwind. Moreover, CONMED’s stock looks much overvalued at the moment. Pricing pressures add to the woes. The company’s high long-term debt also raises concern.”

CNMD has been the subject of a number of other reports. BidaskClub downgraded CONMED from a strong-buy rating to a buy rating in a research report on Wednesday, April 4th. Needham & Company LLC upped their target price on CONMED from $71.00 to $73.00 and gave the company a buy rating in a research report on Thursday, April 26th. Finally, ValuEngine upgraded CONMED from a hold rating to a buy rating in a research report on Thursday, March 1st. Three equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average target price of $67.67.

NASDAQ:CNMD opened at $73.91 on Tuesday. The firm has a market cap of $2.11 billion, a PE ratio of 36.77, a P/E/G ratio of 3.02 and a beta of 0.60. The company has a quick ratio of 1.23, a current ratio of 2.15 and a debt-to-equity ratio of 0.69. CONMED has a fifty-two week low of $47.41 and a fifty-two week high of $76.63.

CONMED (NASDAQ:CNMD) last released its earnings results on Wednesday, April 25th. The medical technology company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.10. The firm had revenue of $202.10 million during the quarter, compared to the consensus estimate of $196.51 million. CONMED had a return on equity of 9.46% and a net margin of 8.71%. The company’s revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.38 EPS. research analysts expect that CONMED will post 2.17 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 5th. Investors of record on Friday, June 15th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Thursday, June 14th. This represents a $0.80 annualized dividend and a dividend yield of 1.08%. CONMED’s dividend payout ratio is currently 42.33%.

In related news, EVP Daniel Jonas sold 2,000 shares of the company’s stock in a transaction on Friday, April 27th. The stock was sold at an average price of $65.58, for a total transaction of $131,160.00. Following the completion of the sale, the executive vice president now directly owns 23,245 shares in the company, valued at approximately $1,524,407.10. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Terence M. Berge sold 673 shares of the company’s stock in a transaction on Wednesday, June 13th. The stock was sold at an average price of $73.00, for a total value of $49,129.00. Following the sale, the vice president now owns 19,908 shares of the company’s stock, valued at $1,453,284. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 18,780 shares of company stock valued at $1,243,985. 3.13% of the stock is owned by corporate insiders.

Several hedge funds have recently made changes to their positions in the stock. BlackRock Inc. lifted its position in shares of CONMED by 8.4% during the 1st quarter. BlackRock Inc. now owns 3,558,330 shares of the medical technology company’s stock worth $225,348,000 after buying an additional 276,513 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of CONMED by 6.1% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,067,319 shares of the medical technology company’s stock worth $54,401,000 after buying an additional 61,617 shares during the last quarter. Macquarie Group Ltd. lifted its position in shares of CONMED by 3.2% during the 4th quarter. Macquarie Group Ltd. now owns 755,724 shares of the medical technology company’s stock worth $38,519,000 after buying an additional 23,767 shares during the last quarter. Westwood Holdings Group Inc. lifted its position in shares of CONMED by 6.3% during the 4th quarter. Westwood Holdings Group Inc. now owns 368,745 shares of the medical technology company’s stock worth $18,795,000 after buying an additional 21,800 shares during the last quarter. Finally, Epoch Investment Partners Inc. lifted its position in shares of CONMED by 6.9% during the 1st quarter. Epoch Investment Partners Inc. now owns 252,845 shares of the medical technology company’s stock worth $16,013,000 after buying an additional 16,359 shares during the last quarter. Institutional investors and hedge funds own 95.43% of the company’s stock.

CONMED Company Profile

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for minimally invasive procedures in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers orthopedic surgery products, including sports medicine products comprising powered resection instruments, arthroscopes, reconstructive systems, tissue repair sets, and metal and bioabsorbable implants, as well as related disposable products and fluid management systems; powered surgical instruments for use in bone orthopedic, arthroscopic, oral/maxillofacial, podiatric, plastic, ENT, neurological, spinal, and cardiothoracic surgeries; sports biologics and tissue products; and surgical visualization products.

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