Stryker (SYK) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of Stryker (NYSE:SYK) from a hold rating to a sell rating in a research report report published on Saturday morning.
According to Zacks, “Despite trading above the broader industry in the last year, Stryker has been grappling with supply side issues in its spine business since long. Adding to our concerns, Stryker announced the voluntary product recall of the Oral Care lineup. The recall is likely to adversely impact the company’s sales and operating income. Moreover, volatility in foreign currency exchange is likely to impede Stryker’s growth in the coming quarters. On a brighter note, solid performance in the MAKO platform has been boosting Stryker’s revenues since long. An upbeat guidance for the full year instills investor confidence on the stock. Stryker’s acquisition-driven strategy is expected to expand existing product offerings across all business segments. Continued strong demand for hemorrhagic and ischemic stroke products and neuro-powered instruments are also likely to boost sales in the neurotechnology segment.”
A number of other brokerages have also recently commented on SYK. Piper Jaffray Companies upped their price target on shares of Stryker from $156.00 to $166.00 and gave the company an overweight rating in a research note on Tuesday, January 9th. Royal Bank of Canada restated a buy rating and set a $175.00 price target on shares of Stryker in a research note on Tuesday, January 9th. Cowen set a $166.00 price target on shares of Stryker and gave the company a buy rating in a research note on Sunday, October 29th. Needham & Company LLC restated a hold rating on shares of Stryker in a research note on Wednesday. Finally, Cantor Fitzgerald restated a neutral rating and set a $163.00 price target on shares of Stryker in a research note on Friday, January 5th. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and thirteen have given a buy rating to the stock. Stryker presently has an average rating of Hold and an average price target of $156.60.
Stryker (NYSE:SYK) last released its earnings results on Thursday, October 26th. The medical technology company reported $1.52 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.50 by $0.02. The firm had revenue of $3.01 billion for the quarter, compared to analysts’ expectations of $2.97 billion. Stryker had a net margin of 14.67% and a return on equity of 24.11%. The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the company earned $1.39 earnings per share. sell-side analysts expect that Stryker will post 6.49 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 31st. Investors of record on Friday, December 29th will be issued a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a yield of 1.17%. The ex-dividend date is Thursday, December 28th. This is a positive change from Stryker’s previous quarterly dividend of $0.43. Stryker’s dividend payout ratio is 40.17%.
In related news, insider Lonny J. Carpenter sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, November 3rd. The shares were sold at an average price of $155.34, for a total transaction of $776,700.00. Following the sale, the insider now owns 83,207 shares of the company’s stock, valued at approximately $12,925,375.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 7.40% of the company’s stock.
Several large investors have recently modified their holdings of the company. State of Alaska Department of Revenue increased its holdings in shares of Stryker by 216.4% in the 4th quarter. State of Alaska Department of Revenue now owns 48,095 shares of the medical technology company’s stock worth $7,445,000 after buying an additional 32,892 shares during the last quarter. McCollum Christoferson Group LLC bought a new position in shares of Stryker in the 4th quarter worth $7,221,000. Alta Capital Management LLC bought a new position in shares of Stryker in the 4th quarter worth $206,000. BKD Wealth Advisors LLC increased its holdings in shares of Stryker by 16.4% in the 4th quarter. BKD Wealth Advisors LLC now owns 3,770 shares of the medical technology company’s stock worth $584,000 after buying an additional 530 shares during the last quarter. Finally, Smithbridge Asset Management Inc. DE increased its holdings in shares of Stryker by 3.1% in the 4th quarter. Smithbridge Asset Management Inc. DE now owns 14,106 shares of the medical technology company’s stock worth $2,184,000 after buying an additional 428 shares during the last quarter. 74.88% of the stock is currently owned by hedge funds and other institutional investors.
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Stryker Corporation is a medical technology company. The Company offers a range of medical technologies, including orthopedic, medical and surgical, and neurotechnology and spine products. The Company’s segments include Orthopaedics; MedSurg; Neurotechnology and Spine, and Corporate and Other. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems and other related products.
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