Zacks Investment Research upgraded shares of Stryker (NYSE:SYK) from a hold rating to a buy rating in a research note released on Friday morning, Zacks.com reports. They currently have $208.00 target price on the medical technology company’s stock.
According to Zacks, “Stryker 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’s time. 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. 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.”
Several other research firms have also weighed in on SYK. Credit Suisse Group upgraded Stryker to an outperform rating in a research note on Thursday, January 31st. JPMorgan Chase & Co. upped their price objective on Stryker from $200.00 to $215.00 and gave the company an overweight rating in a research note on Tuesday, March 19th. ValuEngine lowered Stryker from a buy rating to a hold rating in a research note on Thursday, April 18th. Canaccord Genuity upped their price objective on Stryker from $190.00 to $195.00 and gave the company a buy rating in a research note on Wednesday, April 24th. Finally, Barclays set a $203.00 price objective on Stryker and gave the company a buy rating in a research note on Friday, March 8th. Six equities research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. The stock has a consensus rating of Buy and an average price target of $196.85.
Stryker (NYSE:SYK) last released its quarterly earnings data on Tuesday, April 23rd. The medical technology company reported $1.88 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.04. Stryker had a return on equity of 26.72% and a net margin of 25.38%. The company had revenue of $3.52 billion for the quarter, compared to analyst estimates of $3.51 billion. During the same period in the prior year, the company posted $1.68 EPS. The company’s revenue was up 8.5% compared to the same quarter last year. Analysts forecast that Stryker will post 8.15 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 31st. Investors of record on Friday, June 28th will be given a dividend of $0.52 per share. The ex-dividend date of this dividend is Thursday, June 27th. This represents a $2.08 dividend on an annualized basis and a yield of 1.13%. Stryker’s dividend payout ratio (DPR) is presently 28.45%.
In related news, Chairman Kevin Lobo sold 41,750 shares of the stock in a transaction that occurred on Monday, March 25th. The stock was sold at an average price of $194.11, for a total transaction of $8,104,092.50. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Yin C. Becker sold 15,240 shares of the stock in a transaction that occurred on Thursday, March 21st. The stock was sold at an average price of $198.03, for a total value of $3,017,977.20. Following the sale, the vice president now owns 16,577 shares in the company, valued at $3,282,743.31. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 111,550 shares of company stock worth $21,376,317. 7.20% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SYK. Farmers National Bank acquired a new position in Stryker during the 1st quarter worth $25,000. Cable Hill Partners LLC acquired a new position in Stryker during the 1st quarter worth $30,000. RPG Investment Advisory LLC lifted its holdings in Stryker by 160.0% during the 1st quarter. RPG Investment Advisory LLC now owns 156 shares of the medical technology company’s stock worth $31,000 after buying an additional 96 shares in the last quarter. ERTS Wealth Advisors LLC acquired a new position in Stryker during the 4th quarter worth $25,000. Finally, Northwest Wealth Management LLC lifted its holdings in Stryker by 103.6% during the 4th quarter. Northwest Wealth Management LLC now owns 169 shares of the medical technology company’s stock worth $26,000 after buying an additional 86 shares in the last quarter. Institutional investors and hedge funds own 74.71% of the company’s stock.
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.
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