Stryker (SYK) Cut to Sell at Zacks Investment Research

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

SYK has been the topic of several other reports. SunTrust Banks reaffirmed a “buy” rating and issued a $161.00 target price on shares of Stryker in a research note on Monday, October 2nd. Oppenheimer set a $156.00 price objective on shares of Stryker and gave the company a “hold” rating in a research report on Monday, October 30th. Canaccord Genuity boosted their price objective on shares of Stryker from $155.00 to $162.00 and gave the company a “buy” rating in a research report on Friday, October 27th. Cowen set a $160.00 price objective on shares of Stryker and gave the company a “buy” rating in a research report on Friday, October 6th. Finally, Royal Bank of Canada reissued a “buy” rating and set a $155.00 price objective on shares of Stryker in a research report on Monday, October 2nd. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and thirteen have given a buy rating to the stock. Stryker has an average rating of “Hold” and an average price target of $156.60.

Shares of Stryker (NYSE:SYK) traded up $1.00 during midday trading on Friday, hitting $161.28. 1,191,723 shares of the company traded hands, compared to its average volume of 1,090,000. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.63. Stryker has a 12 month low of $119.17 and a 12 month high of $164.20. The stock has a market capitalization of $60,360.00, a P/E ratio of 34.39, a price-to-earnings-growth ratio of 2.30 and a beta of 0.78.

Stryker (NYSE:SYK) last issued its earnings results on Thursday, October 26th. The medical technology company reported $1.52 EPS for the quarter, topping the 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 company had revenue of $3.01 billion for the quarter, compared to the consensus estimate of $2.97 billion. During the same period in the previous year, the firm earned $1.39 earnings per share. The firm’s revenue for the quarter was up 6.1% on a year-over-year basis. equities analysts predict that Stryker will post 6.49 EPS for the current year.

In other news, insider Lonny J. Carpenter sold 5,000 shares of the company’s stock in a transaction dated Friday, November 3rd. The shares were sold at an average price of $155.34, for a total value of $776,700.00. Following the sale, 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 Securities & Exchange Commission, which can be accessed through this link. 7.40% of the stock is owned by corporate insiders.

Large investors have recently added to or reduced their stakes in the company. Acrospire Investment Management LLC purchased a new stake in shares of Stryker in the 2nd quarter worth about $111,000. Motco boosted its stake in Stryker by 50.7% in the 2nd quarter. Motco now owns 826 shares of the medical technology company’s stock worth $115,000 after purchasing an additional 278 shares in the last quarter. Sawyer & Company Inc bought a new position in Stryker in the 4th quarter worth about $125,000. Sit Investment Associates Inc. boosted its stake in Stryker by 114.3% in the 4th quarter. Sit Investment Associates Inc. now owns 825 shares of the medical technology company’s stock worth $128,000 after purchasing an additional 440 shares in the last quarter. Finally, San Francisco Sentry Investment Group CA boosted its stake in Stryker by 47.8% in the 3rd quarter. San Francisco Sentry Investment Group CA now owns 1,005 shares of the medical technology company’s stock worth $143,000 after purchasing an additional 325 shares in the last quarter. 74.88% of the stock is currently 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.

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