Zacks Investment Research Lowers Globus Medical (GMED) to Sell

Globus Medical (NYSE:GMED) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

According to Zacks, “Globus Medical, Inc. is a medical device company focused on the design, development and commercialization of products that promote healing in patients with spine disorders. The Company’s products fall into one of two categories: innovative fusion or disruptive technologies. Its innovative fusion products address a broad range of spinal fusion surgical procedures. Its disruptive technology products include minimally invasive surgical, motion preservation and advanced biomaterials technologies. Globus Medical, Inc. is based in Audubon, Pennsylvania. “

A number of other analysts also recently commented on the company. ValuEngine downgraded Globus Medical from a “buy” rating to a “hold” rating in a research note on Tuesday, March 5th. Cantor Fitzgerald reissued a “buy” rating and issued a $60.00 price objective on shares of Globus Medical in a research note on Friday, March 1st. UBS Group raised Globus Medical from a “neutral” rating to a “buy” rating and set a $55.00 price objective on the stock in a research note on Thursday, February 28th. Morgan Stanley cut Globus Medical from an “overweight” rating to an “equal weight” rating and decreased their target price for the stock from $64.00 to $49.00 in a report on Wednesday, January 2nd. Finally, Credit Suisse Group began coverage on Globus Medical in a report on Monday, December 17th. They issued an “outperform” rating and a $53.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $56.36.

GMED opened at $47.86 on Tuesday. Globus Medical has a one year low of $38.01 and a one year high of $57.83. The firm has a market capitalization of $4.68 billion, a PE ratio of 28.66, a PEG ratio of 2.42 and a beta of 0.86.

Globus Medical (NYSE:GMED) last posted its quarterly earnings data on Thursday, February 21st. The medical device company reported $0.43 EPS for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.03. Globus Medical had a return on equity of 15.22% and a net margin of 21.95%. The company had revenue of $195.94 million for the quarter, compared to the consensus estimate of $195.50 million. On average, research analysts forecast that Globus Medical will post 1.72 earnings per share for the current fiscal year.

In other news, Director James R. Tobin sold 8,900 shares of Globus Medical stock in a transaction on Tuesday, February 26th. The stock was sold at an average price of $47.10, for a total transaction of $419,190.00. Following the transaction, the director now owns 8,900 shares in the company, valued at $419,190. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, President Anthony L. Williams sold 212,082 shares of Globus Medical stock in a transaction on Thursday, March 7th. The shares were sold at an average price of $46.83, for a total value of $9,931,800.06. Following the transaction, the president now owns 89,583 shares in the company, valued at approximately $4,195,171.89. The disclosure for this sale can be found here. Insiders sold a total of 423,852 shares of company stock worth $19,916,004 over the last 90 days. Insiders own 28.44% of the company’s stock.

Several hedge funds have recently modified their holdings of GMED. Investec Asset Management LTD purchased a new position in shares of Globus Medical during the fourth quarter valued at $64,761,000. Oregon Public Employees Retirement Fund grew its holdings in shares of Globus Medical by 4,284.6% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 1,250,619 shares of the medical device company’s stock valued at $29,000 after buying an additional 1,222,096 shares in the last quarter. Norges Bank purchased a new position in Globus Medical in the fourth quarter valued at about $43,840,000. Marshall Wace LLP purchased a new position in Globus Medical in the third quarter valued at about $48,854,000. Finally, BlackRock Inc. grew its stake in Globus Medical by 2.8% in the third quarter. BlackRock Inc. now owns 9,456,276 shares of the medical device company’s stock valued at $536,739,000 after purchasing an additional 254,550 shares in the last quarter. Institutional investors and hedge funds own 68.22% of the company’s stock.

Globus Medical Company Profile

Globus Medical, Inc, a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company offers products that address a variety of musculoskeletal pathologies, anatomies, and surgical approaches.

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