Stryker (SYK) Upgraded by Zacks Investment Research to Buy

Stryker (NYSE:SYK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage currently has a $185.00 price target on the medical technology company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 12.05% from the stock’s current price.

According to Zacks, “Stryker outperformed the industry in a year’s time. 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 recent times. 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. On the flip side, Stryker’s 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 lately as it was affected by softness in the market and product supply issues. Stiff competition is likely to mar Stryker’s prospects.”

Several other research firms have also commented on SYK. Needham & Company LLC reaffirmed a “hold” rating on shares of Stryker in a report on Tuesday, September 11th. Oppenheimer set a $170.00 target price on Stryker and gave the company a “hold” rating in a report on Friday, November 9th. BTIG Research reaffirmed a “buy” rating and set a $187.00 target price on shares of Stryker in a report on Wednesday, September 12th. Citigroup upped their target price on Stryker from $173.00 to $174.00 and gave the company a “neutral” rating in a report on Thursday, November 15th. Finally, JPMorgan Chase & Co. upped their target price on Stryker to $200.00 and gave the company an “overweight” rating in a report on Thursday, September 13th. Seven investment analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $182.10.

Stryker stock traded up $0.30 during midday trading on Monday, hitting $165.10. The stock had a trading volume of 48,156 shares, compared to its average volume of 1,200,279. The company has a quick ratio of 1.21, a current ratio of 1.91 and a debt-to-equity ratio of 0.60. The firm has a market cap of $61.67 billion, a P/E ratio of 25.47, a P/E/G ratio of 2.27 and a beta of 0.64. Stryker has a 12 month low of $146.80 and a 12 month high of $179.84.

Stryker (NYSE:SYK) last posted its earnings results on Thursday, October 25th. The medical technology company reported $1.69 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.68 by $0.01. The company had revenue of $3.24 billion during the quarter, compared to analyst estimates of $3.26 billion. Stryker had a return on equity of 28.00% and a net margin of 9.31%. As a group, equities research analysts anticipate that Stryker will post 7.28 earnings per share for the current year.

In other news, CFO Glenn S. Boehnlein sold 750 shares of the business’s stock in a transaction that occurred on Monday, October 1st. The stock was 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 $496,203.45. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Katherine Ann Owen sold 37,866 shares of the business’s stock in a transaction that occurred on Wednesday, September 5th. The stock was sold at an average price of $166.84, for a total value of $6,317,563.44. Following the transaction, the vice president now owns 11,367 shares of the company’s stock, valued at $1,896,470.28. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 39,031 shares of company stock valued at $6,520,313. Insiders own 7.30% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SYK. Janney Montgomery Scott LLC lifted its position in Stryker by 1.5% in the second quarter. Janney Montgomery Scott LLC now owns 21,307 shares of the medical technology company’s stock worth $3,598,000 after purchasing an additional 316 shares during the period. Alps Advisors Inc. acquired a new stake in Stryker in the second quarter worth approximately $508,000. Kaizen Advisory LLC lifted its position in Stryker by 142.6% in the second quarter. Kaizen Advisory LLC now owns 752 shares of the medical technology company’s stock worth $127,000 after purchasing an additional 442 shares during the period. Pinnacle Financial Partners Inc. lifted its position in Stryker by 21.9% in the second quarter. Pinnacle Financial Partners Inc. now owns 2,494 shares of the medical technology company’s stock worth $421,000 after purchasing an additional 448 shares during the period. Finally, BP PLC lifted its position in Stryker by 8.9% in the second quarter. BP PLC now owns 43,000 shares of the medical technology company’s stock worth $7,261,000 after purchasing an additional 3,500 shares during the period. Hedge funds and other institutional investors own 74.87% of the company’s stock.

About Stryker

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.

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