Edwards Lifesciences (NYSE:EW) Sets New 52-Week High on Earnings Beat

Edwards Lifesciences Corporation (NYSE:EW) reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $99.68 and last traded at $99.1210, with a volume of 415,242 shares changing hands. The stock had previously closed at $95.19.

The medical research company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.06. The company had revenue of $1.72 billion for the quarter, compared to analysts’ expectations of $1.68 billion. Edwards Lifesciences had a net margin of 15.30% and a return on equity of 16.25%. The firm’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.67 EPS.

Key Headlines Impacting Edwards Lifesciences

Here are the key news stories impacting Edwards Lifesciences this week:

• Positive Sentiment: Edwards reported Q3 revenue of $1.72 billion, up 11.2% year over year, and adjusted EPS of $0.80, beating estimates of $1.68 billion and $0.74. Growth in structural heart therapies helped drive the results; TMTT sales rose 45.6% and TAVR sales 8.8%. The company raised its full-year outlook, including adjusted EPS guidance of $2.97–$3.05. Read More.
• Positive Sentiment: New PROGRESS Trial data found TAVR reduced combined death or heart-failure outcomes versus active surveillance in at-risk patients with moderate aortic stenosis, with fewer heart-failure hospitalizations and better quality-of-life measures. Positive data, alongside expanded Medicare reimbursement, could support earlier use and more procedures. Read More.
• Positive Sentiment: Analysts responded to the results by lifting price targets and, in some cases, upgrading ratings. JPMorgan raised its target to $120 from $105, UBS to $118 from $110, and several other firms also increased targets; Baird and Truist upgraded the stock. The cluster of revisions signals improved confidence in EW’s outlook. Read More.
• Negative Sentiment: Management expects greater competition in transcatheter aortic valve replacement (TAVR). Competitive pressure could weigh on future growth or margins, even as current sales and trial results are encouraging. Read More.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Edwards Lifesciences from $105.00 to $120.00 and gave the stock an “overweight” rating in a research note on Thursday. Argus increased their target price on Edwards Lifesciences from $105.00 to $115.00 and gave the company a “buy” rating in a research report on Friday, August 21st. Truist Financial set a $113.00 price target on Edwards Lifesciences and gave the company a “buy” rating in a report on Wednesday. Raymond James Financial boosted their price target on Edwards Lifesciences from $100.00 to $103.00 and gave the stock an “outperform” rating in a research report on Friday, July 24th. Finally, Barclays upped their price objective on Edwards Lifesciences from $110.00 to $120.00 and gave the stock an “overweight” rating in a research note on Thursday. Twenty-three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Edwards Lifesciences currently has an average rating of “Moderate Buy” and a consensus price target of $108.88.

Insider Transactions at Edwards Lifesciences

In other news, VP Daniel J. Lippis sold 619 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $92.03, for a total value of $56,966.57. Following the completion of the sale, the vice president owned 40,034 shares of the company’s stock, valued at $3,684,329.02. This trade represents a 1.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Andrew M. Dahl sold 544 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $91.06, for a total value of $49,536.64. Following the transaction, the senior vice president owned 14,868 shares in the company, valued at approximately $1,353,880.08. This trade represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 5,045 shares of company stock valued at $451,596. Corporate insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Edwards Lifesciences

A number of large investors have recently modified their holdings of EW. BlackRock Inc. purchased a new stake in shares of Edwards Lifesciences during the second quarter worth $5,318,092,000. Varma Mutual Pension Insurance Co acquired a new stake in shares of Edwards Lifesciences in the second quarter valued at about $11,168,000. Conway Capital Management Inc. acquired a new stake in shares of Edwards Lifesciences in the second quarter valued at about $954,000. Commerce Bank purchased a new position in shares of Edwards Lifesciences in the second quarter worth about $3,121,000. Finally, Assenagon Asset Management S.A. lifted its stake in shares of Edwards Lifesciences by 50.0% in the third quarter. Assenagon Asset Management S.A. now owns 2,719,271 shares of the medical research company’s stock worth $234,727,000 after buying an additional 906,345 shares in the last quarter. Hedge funds and other institutional investors own 79.46% of the company’s stock.

Edwards Lifesciences Trading Up 1.3%

The stock has a market capitalization of $57.99 billion, a PE ratio of 56.90, a P/E/G ratio of 2.60 and a beta of 0.85. The company’s 50 day moving average price is $88.68 and its two-hundred day moving average price is $85.69. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.52 and a quick ratio of 3.77.

About Edwards Lifesciences

Edwards Lifesciences Corporation (NYSE:EW) is a medical technology company focused on therapies for structural heart disease and critical care. The company develops and manufactures products designed to treat conditions affecting the heart’s valves, including aortic, mitral and tricuspid valve disorders.

Its portfolio includes transcatheter aortic valve replacement systems, transcatheter mitral and tricuspid therapies, surgical heart valves and valve-repair technologies. Edwards also provides related delivery systems and other medical devices used by physicians in minimally invasive and open-heart procedures.

Founded in 1958 by Miles Lowell Edwards, the company is headquartered in Irvine, California, and serves healthcare providers and patients internationally.