Stryker (SYK) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of Stryker (NYSE:SYK) from a buy rating to a hold rating in a report issued on Thursday.

According to Zacks, “Stryker exited the third quarter on a mixed note, with earnings beating estimates and revenues missing the same. The company continues to gain from its flagship Mako Total Knee platform, which drove its core Orthopaedic segment. In fact, the company witnessed solid growth in Mako robot installations in the quarter. Surging domestic sales is another positive. Moreover, solid performance in emerging markets and Europe paints a bright picture. Solid expansion in operating margin is encouraging as well. A raised guidance for 2018 buoys optimism. Stryker outperformed the industry in a year’s time. On the flip side, gross margin has been declining. Total debt on the balance sheet remains unchanged, adding to the company’s woes. The Trauma & Extremities business had moderate growth and was affected by softness in the market and product supply issues. Stiff competition is likely to mar Stryker’s prospects.”

SYK has been the topic of a number of other research reports. Barclays began coverage on shares of Stryker in a report on Monday, October 15th. They issued an overweight rating and a $198.00 price target on the stock. Cowen set a $195.00 price objective on shares of Stryker and gave the company a buy rating in a research note on Friday, November 9th. Citigroup lifted their price objective on shares of Stryker from $171.00 to $173.00 and gave the company a neutral rating in a research note on Wednesday, July 25th. Cantor Fitzgerald lifted their price objective on shares of Stryker from $170.00 to $175.00 and gave the company a neutral rating in a research note on Wednesday, July 25th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Stryker to $200.00 and gave the company an overweight rating in a research note on Thursday, September 13th. Eight investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. The stock presently has an average rating of Buy and a consensus target price of $181.86.

Shares of NYSE:SYK traded up $0.84 during mid-day trading on Thursday, reaching $165.18. The company had a trading volume of 11,708 shares, compared to its average volume of 1,434,256. The company has a current ratio of 1.91, a quick ratio of 1.21 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $61.49 billion, a PE ratio of 25.50, a price-to-earnings-growth ratio of 2.26 and a beta of 0.64. Stryker has a one year low of $146.80 and a one year high of $179.84.

Stryker (NYSE:SYK) last posted its quarterly earnings results on Thursday, October 25th. The medical technology company reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $1.68 by $0.01. The company had revenue of $3.24 billion for the quarter, compared to analysts’ expectations of $3.26 billion. Stryker had a net margin of 9.31% and a return on equity of 28.00%. Research analysts predict that Stryker will post 7.28 earnings per share for the current year.

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 31st. Stockholders of record on Friday, September 28th were given a dividend of $0.47 per share. The ex-dividend date of this dividend was Thursday, September 27th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 1.14%. Stryker’s dividend payout ratio (DPR) is currently 28.97%.

In other news, CFO Glenn S. Boehnlein sold 750 shares of the business’s stock in a transaction on Monday, October 1st. The shares were sold at an average price of $178.17, for a total transaction of $133,627.50. Following the completion of the transaction, the chief financial officer now directly owns 2,785 shares in the company, valued at approximately $496,203.45. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP M Kathryn Fink sold 415 shares of the business’s stock in a transaction on Monday, November 5th. The shares were sold at an average price of $166.56, for a total transaction of $69,122.40. The disclosure for this sale can be found here. Insiders have sold a total of 39,031 shares of company stock valued at $6,520,313 over the last 90 days. Company insiders own 7.40% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Atlantic Trust LLC bought a new stake in shares of Stryker during the 2nd quarter worth $105,000. Centaurus Financial Inc. bought a new stake in shares of Stryker during the 2nd quarter worth $110,000. NuWave Investment Management LLC lifted its holdings in shares of Stryker by 3,245.0% during the 3rd quarter. NuWave Investment Management LLC now owns 669 shares of the medical technology company’s stock worth $119,000 after acquiring an additional 649 shares during the last quarter. Kaizen Advisory LLC lifted its holdings in shares of Stryker by 142.6% during the 2nd quarter. Kaizen Advisory LLC now owns 752 shares of the medical technology company’s stock worth $127,000 after acquiring an additional 442 shares during the last quarter. Finally, NumerixS Investment Technologies Inc bought a new stake in shares of Stryker during the 2nd quarter worth $135,000. Hedge funds and other institutional investors own 74.87% 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.

Further Reading: Institutional Investors

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