Zacks Investment Research Upgrades Globus Medical (GMED) to Buy

Globus Medical (NYSE:GMED) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, Zacks.com reports. The firm presently has a $51.00 price target on the medical device company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 11.99% from the stock’s previous close.

According to Zacks, “Globus Medical ended the fourth quarter 2019 on a positive note with better-than-expected earnings and revenue performances. The company witnessed strength in the United States and the international regions as well as in the Musculoskeletal solutions and Enabling Technologies segments. Supported by its focus on the priority areas like efforts in innovation and research and development, the company has again delivered strong top-line numbers for its Spine arm. Implant pull-through from ExcelsiusGPS placements and back-to-back record sales force recruiting years were the primary growth drivers. However, escalating costs and expenses weighed on the company’s margins. This apart, the pricing scenario is persistently tough for Globus Medical. Overall, the stock has underperformed its industry in the past three months.”

A number of other equities analysts also recently commented on GMED. ValuEngine downgraded shares of Globus Medical from a “buy” rating to a “hold” rating in a research note on Tuesday, March 5th. Oppenheimer restated a “hold” rating on shares of Globus Medical in a research note on Tuesday, March 19th. UBS Group upgraded shares of Globus Medical from a “neutral” rating to a “buy” rating and set a $55.00 target price on the stock in a research note on Thursday, February 28th. Cantor Fitzgerald restated a “buy” rating and issued a $65.00 target price on shares of Globus Medical in a research note on Wednesday, January 9th. Finally, Morgan Stanley downgraded shares of Globus Medical from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $64.00 to $49.00 in a research note on Wednesday, January 2nd. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and seven have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $57.60.

Shares of GMED stock opened at $45.54 on Wednesday. The stock has a market capitalization of $4.47 billion, a price-to-earnings ratio of 27.27, a P/E/G ratio of 2.32 and a beta of 0.86. Globus Medical has a one year low of $38.01 and a one year high of $57.83.

Globus Medical (NYSE:GMED) last issued its earnings results on Thursday, February 21st. The medical device company reported $0.43 EPS for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.03. The business had revenue of $195.94 million for the quarter, compared to the consensus estimate of $195.50 million. Globus Medical had a net margin of 21.95% and a return on equity of 15.22%. On average, sell-side analysts anticipate that Globus Medical will post 1.71 earnings per share for the current fiscal year.

In related news, Director James R. Tobin sold 8,900 shares of the stock in a transaction that occurred on Tuesday, February 26th. The shares were sold at an average price of $47.10, for a total transaction of $419,190.00. Following the completion of the sale, the director now owns 8,900 shares of the company’s stock, valued at $419,190. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Kelly Huller sold 3,000 shares of the stock in a transaction that occurred on Thursday, March 28th. The shares were sold at an average price of $48.59, for a total transaction of $145,770.00. Following the sale, the senior vice president now directly owns 12,384 shares of the company’s stock, valued at approximately $601,738.56. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 426,852 shares of company stock worth $20,061,774. Insiders own 28.44% of the company’s stock.

A number of large investors have recently bought and sold shares of the stock. BNP Paribas Arbitrage SA lifted its position in Globus Medical by 848.4% during the first quarter. BNP Paribas Arbitrage SA now owns 16,123 shares of the medical device company’s stock valued at $797,000 after acquiring an additional 14,423 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. lifted its position in Globus Medical by 8.6% during the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 85,352 shares of the medical device company’s stock valued at $4,217,000 after acquiring an additional 6,730 shares during the last quarter. Virginia Retirement Systems ET AL lifted its position in Globus Medical by 9.0% during the first quarter. Virginia Retirement Systems ET AL now owns 39,900 shares of the medical device company’s stock valued at $1,971,000 after acquiring an additional 3,300 shares during the last quarter. Brinker Capital Inc. lifted its position in Globus Medical by 73.0% during the first quarter. Brinker Capital Inc. now owns 9,392 shares of the medical device company’s stock valued at $464,000 after acquiring an additional 3,963 shares during the last quarter. Finally, Pennsylvania Trust Co purchased a new stake in Globus Medical during the first quarter valued at approximately $344,000. 69.26% of the stock is owned by institutional investors.

Globus Medical Company Profile

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 a variety of musculoskeletal pathologies, anatomies, and surgical approaches.

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