Needham & Company LLC Reiterates Hold Rating for Stryker (SYK)
Stryker (NYSE:SYK)‘s stock had its “hold” rating reaffirmed by Needham & Company LLC in a report released on Tuesday.
The analysts wrote, “SYK is acquiring Invuity (IVTY) for $7.40 per share (a 29% premium) or ~$190M of cash which is 3.4x consensus 2019E sales (vs. 6.4x EV/2019E sales for its medical supplies peers). IVTY makes disposable lighted instruments which increase visibility during minimally invasive surgical (MIS) procedures. We believe IVTY fits well with SYK’s Instruments business and note that IVTY’s products are applicable to a large number of surgical procedures. While the deal may be slightly dilutive in 2019, we believe that SYK can absorb this and still deliver on its 9%+ EPS growth target. And the deal should start to become increasingly accretive in 2020 and beyond.””
Other research analysts also recently issued research reports about the stock. Zacks Investment Research upgraded shares of Stryker from a “hold” rating to a “buy” rating and set a $192.00 price objective for the company in a research report on Monday, May 21st. ValuEngine upgraded shares of Stryker from a “hold” rating to a “buy” rating in a research report on Tuesday, June 26th. Royal Bank of Canada reissued a “buy” rating and set a $184.00 target price on shares of Stryker in a research note on Wednesday, July 25th. Canaccord Genuity reissued a “buy” rating and set a $185.00 target price on shares of Stryker in a research note on Wednesday, July 25th. Finally, BTIG Research initiated coverage on shares of Stryker in a research note on Thursday, August 16th. They set a “buy” rating and a $187.00 target price for the company. One research analyst has rated the stock with a sell rating, eight have given a hold rating and fifteen have issued a buy rating to the stock. The stock has an average rating of “Buy” and a consensus price target of $177.25.
Stryker (NYSE:SYK) last issued its quarterly earnings data on Tuesday, July 24th. The medical technology company reported $1.76 earnings per share for the quarter, topping analysts’ consensus estimates of $1.73 by $0.03. The business had revenue of $3.32 billion during the quarter, compared to the consensus estimate of $3.31 billion. Stryker had a net margin of 8.28% and a return on equity of 26.93%. The company’s revenue was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.53 earnings per share. sell-side analysts predict that Stryker will post 7.25 earnings per share for the current year.
In related news, VP Katherine Ann Owen sold 37,866 shares of the company’s stock in a transaction dated Wednesday, September 5th. The shares were sold at an average price of $166.84, for a total transaction of $6,317,563.44. Following the completion of the sale, the vice president now owns 11,367 shares of the company’s stock, valued at approximately $1,896,470.28. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 7.30% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in SYK. Atlantic Trust LLC purchased a new stake in Stryker during the 2nd quarter valued at about $105,000. Centaurus Financial Inc. purchased a new stake in Stryker during the 2nd quarter valued at about $110,000. Kaizen Advisory LLC grew its stake in Stryker by 142.6% during the 2nd quarter. Kaizen Advisory LLC now owns 752 shares of the medical technology company’s stock valued at $127,000 after acquiring an additional 442 shares in the last quarter. CX Institutional purchased a new stake in Stryker during the 2nd quarter valued at about $133,000. Finally, NumerixS Investment Technologies Inc purchased a new stake in Stryker during the 2nd quarter valued at about $135,000. 75.08% of the stock is owned by institutional investors.
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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