Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Downgraded to “Sell” at Zacks Investment Research
Zacks Investment Research downgraded shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH) from a hold rating to a sell rating in a report issued on Tuesday, July 4th.
According to Zacks, “Over the last three months, Zimmer Biomet was trading below the Zacks categorized Medical Product industry on factors like macroeconomic uncertainties, pricing pressure and unfavorable currency fluctuations. Situation deteriorated further with the company lowering a disappointing 2017 outlook. According to the company, lower-than-expected manufacturing output of certain legacy Biomet brands during the first quarter 2017 which may lead to declining product availability in the second quarter, required Zimmer Biomet to lower its guidance. However, we are hopeful about the synergy from LDR Holding buyout, which should complement the company’s musculoskeletal offering. Emerging market expansion is another upside.”
A number of other research firms have also recently commented on ZBH. Jefferies Group LLC reaffirmed a buy rating and set a $148.00 price objective on shares of Zimmer Biomet Holdings in a research report on Friday, June 30th. Cantor Fitzgerald started coverage on shares of Zimmer Biomet Holdings in a research report on Thursday, June 29th. They issued a neutral rating and a $137.00 target price for the company. Royal Bank Of Canada boosted their target price on shares of Zimmer Biomet Holdings from $133.00 to $140.00 and gave the company an outperform rating in a research report on Wednesday, June 21st. Citigroup Inc. boosted their target price on shares of Zimmer Biomet Holdings from $108.00 to $130.00 and gave the company a neutral rating in a research report on Friday, June 9th. Finally, ValuEngine cut shares of Zimmer Biomet Holdings from a buy rating to a hold rating in a research report on Friday, June 2nd. Four analysts have rated the stock with a sell rating, seven have given a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company. The stock currently has a consensus rating of Hold and a consensus price target of $137.76.
Shares of Zimmer Biomet Holdings (NYSE:ZBH) traded up 0.66% during mid-day trading on Tuesday, reaching $117.93. 1,698,086 shares of the company’s stock were exchanged. Zimmer Biomet Holdings has a 52-week low of $95.63 and a 52-week high of $133.49. The stock has a market cap of $23.80 billion, a price-to-earnings ratio of 33.59 and a beta of 1.20. The stock’s 50-day moving average is $127.65 and its 200-day moving average is $121.39.
Zimmer Biomet Holdings (NYSE:ZBH) last released its quarterly earnings data on Thursday, July 27th. The medical equipment provider reported $2.08 EPS for the quarter, missing the Zacks’ consensus estimate of $2.10 by $0.02. Zimmer Biomet Holdings had a return on equity of 16.70% and a net margin of 9.12%. The company had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $1.95 billion. During the same period last year, the firm earned $2.02 earnings per share. The company’s revenue for the quarter was up 1.1% compared to the same quarter last year. On average, equities analysts expect that Zimmer Biomet Holdings will post $8.24 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, July 28th. Stockholders of record on Friday, June 23rd were paid a $0.24 dividend. This represents a $0.96 annualized dividend and a dividend yield of 0.81%. The ex-dividend date was Wednesday, June 21st. Zimmer Biomet Holdings’s dividend payout ratio is currently 27.59%.
In other Zimmer Biomet Holdings news, VP Tony W. Collins sold 16,986 shares of the stock in a transaction that occurred on Monday, July 31st. The shares were sold at an average price of $121.74, for a total transaction of $2,067,875.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Sang Yi sold 17,731 shares of the stock in a transaction that occurred on Monday, June 12th. The shares were sold at an average price of $124.56, for a total transaction of $2,208,573.36. The disclosure for this sale can be found here. Corporate insiders own 1.07% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in ZBH. MARSHALL WACE ASIA Ltd purchased a new stake in Zimmer Biomet Holdings during the first quarter worth $38,621,000. Cibc World Markets Corp increased its stake in Zimmer Biomet Holdings by 52.9% in the first quarter. Cibc World Markets Corp now owns 21,007 shares of the medical equipment provider’s stock worth $2,565,000 after buying an additional 7,269 shares in the last quarter. Norges Bank purchased a new stake in Zimmer Biomet Holdings during the fourth quarter worth $234,271,000. Caxton Associates LP purchased a new stake in Zimmer Biomet Holdings during the first quarter worth $403,000. Finally, Thrivent Financial for Lutherans increased its stake in Zimmer Biomet Holdings by 6.7% in the fourth quarter. Thrivent Financial for Lutherans now owns 7,144 shares of the medical equipment provider’s stock worth $737,000 after buying an additional 450 shares in the last quarter. 84.13% of the stock is owned by institutional investors and hedge funds.
About Zimmer Biomet Holdings
Zimmer Biomet Holdings, Inc is engaged in designing, manufacturing and marketing of orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; office-based technologies; spine, craniomaxillofacial and thoracic products; dental implants, and related surgical products.
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