Zimmer Biomet Holdings, Inc. (ZBH) Downgraded by Zacks Investment Research to Strong Sell
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday.
According to Zacks, “Zimmer Biomet ended the second quarter on a mixed note. While earnings topped the Zacks Consensus Estimate, revenues remained in line with the same. We are disappointed by the company's declining sales performance within several of its core segments. Moreover, the market seems to be apprehensive about the departure of Zimmer’s decade old CEO David C. Dvorak. Zimmer Biomet has been lagging the broader industry with respect to share price movement over the last three months. The trimmed 2017 guidance adds to our concerns indicating little chances of recovery ahead. Nevertheless, improved gross and operating margin performance was encouraging. We look forward to the expected synergy from the LDR Holding acquisition, which should broaden and complement the company's musculoskeletal offering. We are also impressed by the strong strategic and financial goals which the combined entity expects to reach, now that the deal has been closed.”
A number of other equities analysts have also issued reports on the stock. Needham & Company LLC raised their target price on shares of Zimmer Biomet Holdings from $151.00 to $153.00 and gave the stock a “strong-buy” rating in a research report on Friday, April 28th. Oppenheimer Holdings, Inc. set a $132.00 target price on shares of Zimmer Biomet Holdings and gave the stock a “buy” rating in a research report on Friday, April 28th. Goldman Sachs Group, Inc. (The) started coverage on shares of Zimmer Biomet Holdings in a research report on Tuesday, May 16th. They set a “sell” rating and a $92.00 target price on the stock. Wells Fargo & Company lowered shares of Zimmer Biomet Holdings from an “outperform” rating to a “market perform” rating in a research report on Friday, April 28th. Finally, BMO Capital Markets restated a “buy” rating and set a $136.00 target price on shares of Zimmer Biomet Holdings in a research report on Tuesday, July 11th. Four investment analysts have rated the stock with a sell rating, seven have issued a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the stock. Zimmer Biomet Holdings has an average rating of “Hold” and a consensus target price of $137.76.
Zimmer Biomet Holdings (NYSE ZBH) traded down 1.41% during mid-day trading on Tuesday, reaching $115.54. 781,789 shares of the company’s stock traded hands. The stock’s 50 day moving average is $127.65 and its 200-day moving average is $121.39. Zimmer Biomet Holdings has a 52 week low of $95.63 and a 52 week high of $133.49. The stock has a market capitalization of $23.32 billion, a PE ratio of 32.91 and a beta of 1.20.
Zimmer Biomet Holdings (NYSE:ZBH) last announced its earnings results on Thursday, July 27th. The medical equipment provider reported $2.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.10 by $0.02. The business had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.95 billion. Zimmer Biomet Holdings had a return on equity of 16.70% and a net margin of 9.12%. The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business posted $2.02 earnings per share. On average, equities analysts anticipate that Zimmer Biomet Holdings will post $8.24 EPS for the current year.
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In other news, insider Sang Yi sold 17,731 shares of Zimmer Biomet Holdings stock in a transaction on Monday, June 12th. The stock was sold at an average price of $124.56, for a total transaction of $2,208,573.36. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Tony W. Collins sold 16,986 shares of Zimmer Biomet Holdings stock in a transaction on Monday, July 31st. The stock was sold at an average price of $121.74, for a total value of $2,067,875.64. The disclosure for this sale can be found here. Insiders own 1.07% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Farmers & Merchants Investments Inc. increased its position in Zimmer Biomet Holdings by 3.2% in the first quarter. Farmers & Merchants Investments Inc. now owns 2,555 shares of the medical equipment provider’s stock valued at $312,000 after buying an additional 80 shares during the period. Heritage Investors Management Corp increased its position in Zimmer Biomet Holdings by 3.6% in the first quarter. Heritage Investors Management Corp now owns 110,855 shares of the medical equipment provider’s stock valued at $13,537,000 after buying an additional 3,837 shares during the period. Fox Run Management L.L.C. purchased a new position in Zimmer Biomet Holdings during the first quarter valued at about $232,000. Baldwin Brothers Inc. MA purchased a new position in Zimmer Biomet Holdings during the first quarter valued at about $1,671,000. Finally, Guild Investment Management Inc. purchased a new position in Zimmer Biomet Holdings during the first quarter valued at about $3,362,000. 83.62% of the stock is owned by institutional investors and hedge funds.
Zimmer Biomet Holdings Company Profile
Zimmer Biomet Holdings, Inc is engaged in designing, manufacturing and marketing of orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; office-based technologies; spine, craniomaxillofacial and thoracic products; dental implants, and related surgical products.
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