Stryker Corp. (SYK) Rating Lowered to Hold at Zacks Investment Research
Stryker Corp. (NYSE:SYK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Stryker ended the third quarter of 2016 on a solid note, squarely beating the Zacks Consensus Estimate. We believe the company’s innovative product pipeline will be a key catalyst in the near term. Additionally, growing adoption of MAKO will drive sales in the orthopedic and reconstructive surgery market. The acquisition of Sage Products and Physio Control, accompanied by strong performance by the company’s Total Knee platform delivers considerable promise for Stryker. However, on the flip side, China might prove to be a challenging market for the company. Coming to supply side headwinds, the company has been grappling with supply issues in the spine business for long. We believe this may prove to be a major drawback in the quarters ahead. Additionally, challenging global economic conditions, fluctuations in foreign currency exchange rates, lower reimbursements, and a strengthening U.S. dollar pose major headwinds.”
Other equities research analysts have also recently issued reports about the stock. Canaccord Genuity set a $127.00 price objective on shares of Stryker Corp. and gave the stock a “buy” rating in a research report on Sunday, October 30th. Oppenheimer Holdings Inc. set a $122.00 price target on shares of Stryker Corp. and gave the stock a “hold” rating in a research note on Sunday, October 30th. Needham & Company LLC reiterated a “hold” rating on shares of Stryker Corp. in a research note on Sunday, July 24th. Jefferies Group reiterated a “hold” rating and issued a $120.00 price target (up previously from $113.00) on shares of Stryker Corp. in a research note on Monday, July 25th. Finally, Piper Jaffray Cos. lifted their price target on shares of Stryker Corp. from $120.00 to $135.00 and gave the stock an “overweight” rating in a research note on Friday, July 22nd. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and thirteen have assigned a buy rating to the company’s stock. Stryker Corp. currently has an average rating of “Buy” and a consensus target price of $122.38.
Stryker Corp. (NYSE:SYK) opened at 109.74 on Monday. The firm has a market capitalization of $41.09 billion, a PE ratio of 24.97 and a beta of 0.86. Stryker Corp. has a 52-week low of $86.68 and a 52-week high of $123.55. The stock’s 50 day moving average price is $115.24 and its 200 day moving average price is $114.92.
Stryker Corp. (NYSE:SYK) last released its quarterly earnings data on Thursday, October 27th. The medical technology company reported $1.39 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.37 by $0.02. Stryker Corp. had a net margin of 15.24% and a return on equity of 23.61%. The firm earned $2.83 billion during the quarter, compared to analysts’ expectations of $2.81 billion. During the same period last year, the business earned $1.25 earnings per share. Stryker Corp.’s revenue was up 17.1% compared to the same quarter last year. On average, analysts predict that Stryker Corp. will post $5.78 EPS for the current fiscal year.
In other news, Chairman Kevin Lobo sold 26,306 shares of the stock in a transaction dated Thursday, November 3rd. The shares were sold at an average price of $115.74, for a total transaction of $3,044,656.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ronda E. Stryker sold 18,000 shares of the firm’s stock in a transaction dated Tuesday, November 15th. The stock was sold at an average price of $109.53, for a total transaction of $1,971,540.00. Following the completion of the sale, the director now owns 193,142 shares of the company’s stock, valued at $21,154,843.26. The disclosure for this sale can be found here. Company insiders own 7.80% of the company’s stock.
A number of hedge funds have recently modified their holdings of SYK. Mosaic Family Wealth LLC raised its stake in shares of Stryker Corp. by 10.4% in the third quarter. Mosaic Family Wealth LLC now owns 1,256 shares of the medical technology company’s stock valued at $146,000 after buying an additional 118 shares during the period. Covington Capital Management raised its stake in shares of Stryker Corp. by 2.9% in the third quarter. Covington Capital Management now owns 121,369 shares of the medical technology company’s stock valued at $14,129,000 after buying an additional 3,437 shares during the period. Nelson Van Denburg & Campbell Wealth Management Group LLC raised its stake in shares of Stryker Corp. by 7.4% in the third quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 12,616 shares of the medical technology company’s stock valued at $1,468,000 after buying an additional 869 shares during the period. Ameritas Investment Partners Inc. raised its stake in shares of Stryker Corp. by 19.6% in the third quarter. Ameritas Investment Partners Inc. now owns 7,427 shares of the medical technology company’s stock valued at $865,000 after buying an additional 1,217 shares during the period. Finally, Salem Investment Counselors Inc. bought a new stake in shares of Stryker Corp. during the third quarter valued at approximately $116,000. Institutional investors and hedge funds own 74.46% of the company’s stock.
Stryker Corp. Company Profile
Stryker Corporation (Stryker) is a medical technology company. The Company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Company’s Orthopaedics segment products consist of implants used in hip and knee joint replacements and trauma and surgeries. The Company’s MedSurg segment products consist of surgical equipment and surgical navigation systems (Instruments); endoscopic and communications systems (Endoscopy); patient handling and emergency medical equipment (Medical), and reprocessed and remanufactured medical devices (Sustainability), as well as other medical device products used in a range of medical specialties.
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