Zacks Investment Research Downgrades Stryker Corp. (SYK) to Hold
Stryker Corp. (NYSE:SYK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
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.”
Several other research analysts have also weighed in on SYK. Canaccord Genuity set a $127.00 price target on Stryker Corp. and gave the company a “buy” rating in a research report on Sunday, October 30th. Oppenheimer Holdings Inc. set a $122.00 price target on Stryker Corp. and gave the company a “hold” rating in a research report on Sunday, October 30th. Jefferies Group reissued a “hold” rating and set a $120.00 price target (up from $113.00) on shares of Stryker Corp. in a research report on Monday, July 25th. BMO Capital Markets raised Stryker Corp. from an “underperform” rating to a “market perform” rating and set a $125.00 price target on the stock in a research report on Tuesday, November 1st. They noted that the move was a valuation call. Finally, Needham & Company LLC reissued a “hold” rating on shares of Stryker Corp. in a research report on Sunday, November 13th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and twelve have issued a buy rating to the stock. The company has an average rating of “Buy” and an average price target of $122.38.
Stryker Corp. (NYSE:SYK) opened at 111.75 on Tuesday. The stock has a 50 day moving average price of $113.79 and a 200 day moving average price of $114.99. Stryker Corp. has a 1-year low of $86.68 and a 1-year high of $123.55. The firm has a market capitalization of $41.84 billion, a price-to-earnings ratio of 25.43 and a beta of 0.86.
Stryker Corp. (NYSE:SYK) last announced its earnings results on Thursday, October 27th. The medical technology company reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.37 by $0.02. The company had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.81 billion. Stryker Corp. had a return on equity of 23.61% and a net margin of 15.24%. Stryker Corp.’s revenue for the quarter was up 17.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.25 earnings per share. Analysts predict that Stryker Corp. will post $5.78 EPS for the current year.
In other news, Director Ronda E. Stryker sold 12,000 shares of the stock in a transaction that occurred on Wednesday, November 23rd. The stock was sold at an average price of $109.89, for a total value of $1,318,680.00. Following the completion of the transaction, the director now directly owns 193,142 shares of the company’s stock, valued at approximately $21,224,374.38. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Ronda E. Stryker sold 18,000 shares of the stock in a transaction that occurred on Tuesday, November 15th. The stock was sold at an average price of $109.53, for a total value of $1,971,540.00. Following the completion of the transaction, the director now directly owns 193,142 shares of the company’s stock, valued at $21,154,843.26. The disclosure for this sale can be found here. 7.80% of the stock is owned by company insiders.
Several institutional investors have recently modified their holdings of SYK. Winslow Capital Management LLC bought a new position in shares of Stryker Corp. during the second quarter worth about $174,599,000. Capital Research Global Investors boosted its position in shares of Stryker Corp. by 3.4% in the second quarter. Capital Research Global Investors now owns 32,980,782 shares of the medical technology company’s stock worth $3,952,087,000 after buying an additional 1,095,549 shares during the last quarter. BlackRock Fund Advisors boosted its position in shares of Stryker Corp. by 20.1% in the second quarter. BlackRock Fund Advisors now owns 6,280,516 shares of the medical technology company’s stock worth $752,594,000 after buying an additional 1,051,648 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Stryker Corp. by 6.2% in the third quarter. Price T Rowe Associates Inc. MD now owns 17,503,094 shares of the medical technology company’s stock worth $2,037,535,000 after buying an additional 1,022,233 shares during the last quarter. Finally, Emerald Acquisition Ltd. bought a new position in shares of Stryker Corp. during the second quarter worth about $104,111,000. 73.55% of the stock is owned by institutional investors and hedge funds.
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About Stryker Corp.
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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