Zacks Investment Research Downgrades Globus Medical (GMED) to Hold

Zacks Investment Research downgraded shares of Globus Medical (NYSE:GMED) from a buy rating to a hold rating in a report issued on Monday morning.

According to Zacks, “Globus Medical, Inc. is a medical device company focused on the design, development and commercialization of products that promote healing in patients with spine disorders. The Company’s products fall into one of two categories: innovative fusion or disruptive technologies. Its innovative fusion products address a broad range of spinal fusion surgical procedures. Its disruptive technology products include minimally invasive surgical, motion preservation and advanced biomaterials technologies. Globus Medical, Inc. is based in Audubon, Pennsylvania. “

Several other equities research analysts have also recently weighed in on the stock. Needham & Company LLC increased their price objective on shares of Globus Medical from $57.00 to $58.00 and gave the stock a buy rating in a research report on Thursday, May 3rd. Oppenheimer set a $52.00 price objective on shares of Globus Medical and gave the stock a hold rating in a research report on Thursday, May 3rd. Morgan Stanley increased their price objective on shares of Globus Medical from $53.00 to $58.00 and gave the stock a buy rating in a research report on Thursday, May 3rd. ValuEngine upgraded shares of Globus Medical from a buy rating to a strong-buy rating in a research report on Thursday, April 26th. Finally, Cantor Fitzgerald assumed coverage on shares of Globus Medical in a research report on Thursday, May 31st. They set an overweight rating and a $65.00 price objective for the company. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Globus Medical has an average rating of Buy and a consensus price target of $54.36.

NYSE GMED traded down $0.52 on Monday, hitting $51.89. The company’s stock had a trading volume of 3,261 shares, compared to its average volume of 659,159. Globus Medical has a 1-year low of $27.79 and a 1-year high of $57.55. The stock has a market cap of $5.14 billion, a P/E ratio of 40.02, a price-to-earnings-growth ratio of 2.68 and a beta of 0.57.

Globus Medical (NYSE:GMED) last announced its quarterly earnings results on Wednesday, August 1st. The medical device company reported $0.44 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.35 by $0.09. Globus Medical had a net margin of 19.91% and a return on equity of 15.14%. The firm had revenue of $173.40 million during the quarter, compared to analysts’ expectations of $168.03 million. During the same period in the prior year, the company posted $0.32 EPS. The company’s revenue was up 13.8% on a year-over-year basis. analysts expect that Globus Medical will post 1.55 EPS for the current year.

In other Globus Medical news, VP Eric Schwartz sold 10,000 shares of the firm’s stock in a transaction on Monday, June 25th. The shares were sold at an average price of $53.79, for a total value of $537,900.00. Following the transaction, the vice president now directly owns 10,000 shares of the company’s stock, valued at $537,900. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, President Anthony L. Williams sold 121,667 shares of the firm’s stock in a transaction on Monday, June 11th. The shares were sold at an average price of $56.14, for a total transaction of $6,830,385.38. Following the completion of the transaction, the president now directly owns 10,000 shares in the company, valued at $561,400. The disclosure for this sale can be found here. Insiders sold 159,279 shares of company stock worth $8,889,746 over the last ninety days. Insiders own 28.44% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. lifted its position in shares of Globus Medical by 14.9% during the second quarter. BlackRock Inc. now owns 9,201,726 shares of the medical device company’s stock valued at $464,318,000 after purchasing an additional 1,190,681 shares in the last quarter. Victory Capital Management Inc. lifted its position in shares of Globus Medical by 19.9% during the second quarter. Victory Capital Management Inc. now owns 1,335,595 shares of the medical device company’s stock valued at $67,394,000 after purchasing an additional 221,613 shares in the last quarter. FMR LLC bought a new position in shares of Globus Medical during the second quarter valued at about $46,806,000. Renaissance Technologies LLC lifted its position in shares of Globus Medical by 69.7% during the second quarter. Renaissance Technologies LLC now owns 854,900 shares of the medical device company’s stock valued at $43,138,000 after purchasing an additional 351,100 shares in the last quarter. Finally, Point72 Asset Management L.P. lifted its position in shares of Globus Medical by 23.0% during the first quarter. Point72 Asset Management L.P. now owns 556,998 shares of the medical device company’s stock valued at $27,750,000 after purchasing an additional 104,195 shares in the last quarter. 62.77% of the stock is currently owned by institutional investors.

About Globus Medical

Globus Medical, Inc, a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company offers products that address an array of spinal pathologies, anatomies, and surgical approaches. Its fusion products include a range of implant and surgical approach options to treat degenerative, deformity, tumor, and trauma conditions along the spine from the occiput to the sacrum.

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