Stryker (SYK) Downgraded to “Hold” at Zacks Investment Research

Stryker (NYSE:SYK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Stryker exited the first quarter of 2019 on a solid note, with earnings surpassing the consensus mark and revenues increasing on a year-over-year basis. The company continues to gain from its core MedSurg unit which put up a strong show in the reported quarter. Additionally, strength in flagship Mako platform continues to favor the company. Moreover, its K2M acquisition drove the core Neurotechnology & Spine unit in the quarter under review. Solid international growth also buoys optimism. Expansion in operating margin is a positive while strong outlook for 2019 is indicative of bright prospects. Stryker has outperformed the industry in a year. However, contraction in gross margin raises concern. Additionally, revenues in the first quarter were impacted by unfavorable foreign currency movement. Pricing pressure also continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.”

SYK has been the subject of a number of other reports. Canaccord Genuity boosted their price target on shares of Stryker from $185.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, January 30th. Deutsche Bank boosted their price target on shares of Stryker from $181.00 to $208.00 and gave the stock a “buy” rating in a research note on Wednesday, April 24th. ValuEngine raised shares of Stryker from a “hold” rating to a “buy” rating in a research note on Friday, May 3rd. Royal Bank of Canada boosted their price target on shares of Stryker from $184.00 to $204.00 and gave the stock an “outperform” rating in a research note on Monday, March 11th. Finally, Cantor Fitzgerald reissued a “neutral” rating on shares of Stryker in a research note on Friday, January 18th. Seven research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. Stryker currently has an average rating of “Buy” and an average price target of $196.89.

Shares of SYK stock traded up $1.42 during trading hours on Tuesday, reaching $185.62. 15,973 shares of the company were exchanged, compared to its average volume of 1,394,182. Stryker has a fifty-two week low of $144.75 and a fifty-two week high of $199.85. The firm has a market capitalization of $70.15 billion, a price-to-earnings ratio of 25.38, a PEG ratio of 2.29 and a beta of 0.84. The company has a current ratio of 2.12, a quick ratio of 1.30 and a debt-to-equity ratio of 0.68.

Stryker (NYSE:SYK) last posted its quarterly earnings results on Tuesday, April 23rd. The medical technology company reported $1.88 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.84 by $0.04. The business had revenue of $3.52 billion during the quarter, compared to the consensus estimate of $3.51 billion. Stryker had a net margin of 25.38% and a return on equity of 26.72%. Stryker’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.68 earnings per share. On average, equities research analysts forecast that Stryker will post 8.15 earnings per share for the current fiscal year.

In other news, VP Katherine Ann Owen sold 29,247 shares of the stock in a transaction on Friday, March 8th. The shares were sold at an average price of $185.62, for a total transaction of $5,428,828.14. Following the completion of the sale, the vice president now owns 11,131 shares of the company’s stock, valued at $2,066,136.22. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Timothy J. Scannell sold 4,666 shares of the stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $186.25, for a total transaction of $869,042.50. The disclosure for this sale can be found here. Insiders sold 111,550 shares of company stock valued at $21,374,171 in the last ninety days. Insiders own 7.20% of the company’s stock.

Several hedge funds have recently modified their holdings of SYK. Oregon Public Employees Retirement Fund increased its position in shares of Stryker by 8,029.5% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 6,075,473 shares of the medical technology company’s stock worth $39,000 after acquiring an additional 6,000,739 shares in the last quarter. Norges Bank bought a new stake in shares of Stryker during the fourth quarter worth $474,132,000. BlackRock Inc. increased its position in shares of Stryker by 4.1% during the fourth quarter. BlackRock Inc. now owns 24,882,912 shares of the medical technology company’s stock worth $3,900,399,000 after acquiring an additional 975,678 shares in the last quarter. GQG Partners LLC bought a new stake in shares of Stryker during the fourth quarter worth $116,175,000. Finally, Ellis Investment Partners LLC increased its position in shares of Stryker by 19,658.9% during the first quarter. Ellis Investment Partners LLC now owns 367,318 shares of the medical technology company’s stock worth $367,000 after acquiring an additional 365,459 shares in the last quarter. 74.68% of the stock is owned by institutional investors.

Stryker Company Profile

Stryker Corporation operates as a medical technology company. The company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries. The MedSurg segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical devices for use in various medical specialties.

Further Reading: Support Level

Get a free copy of the Zacks research report on Stryker (SYK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Stryker (NYSE:SYK)

Receive News & Ratings for Stryker Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stryker and related companies with MarketBeat.com's FREE daily email newsletter.