Zimmer Biomet (ZBH) Downgraded to “Sell” at Zacks Investment Research

Zimmer Biomet (NYSE:ZBH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.

According to Zacks, “In the past three months, Zimmer Biomet has been observed to outperform its industry. The company’s consistent efforts in product and renovation through research and development raise hopes. The improvement within the company’s global Knee and Hip sales performance and ongoing growth within the Asia Pacific region are encouraging. Banking on its firm focus on priority areas like quality remediation, supply recovery efforts and product launches, Zimmer Biomet once again reported strong topline numbers within its S.E.T. On the flip side, the year-over-year decline in earnings made investors jittery.  Also, declining sales at Dental affected by price completion was a major disappointment. Further, escalating costs and expenses impacted margins.”

ZBH has been the topic of several other research reports. Raymond James lifted their target price on shares of Zimmer Biomet from $135.00 to $145.00 and gave the company an “outperform” rating in a research report on Monday, July 30th. Morgan Stanley raised their price target on shares of Zimmer Biomet from $140.00 to $149.00 and gave the stock an “overweight” rating in a research note on Thursday, October 11th. Oppenheimer reissued a “buy” rating on shares of Zimmer Biomet in a research note on Monday, August 27th. Robert W. Baird raised their price target on shares of Zimmer Biomet from $121.00 to $132.00 and gave the stock a “neutral” rating in a research note on Monday, July 30th. Finally, ValuEngine raised shares of Zimmer Biomet from a “sell” rating to a “hold” rating in a research note on Wednesday, July 25th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and fifteen have assigned a buy rating to the company’s stock. Zimmer Biomet has an average rating of “Hold” and an average target price of $135.33.

Shares of NYSE ZBH traded down $0.02 during trading on Wednesday, hitting $127.66. The company had a trading volume of 71,069 shares, compared to its average volume of 1,161,164. Zimmer Biomet has a fifty-two week low of $104.28 and a fifty-two week high of $134.55. The firm has a market cap of $26.75 billion, a price-to-earnings ratio of 15.90, a price-to-earnings-growth ratio of 2.41 and a beta of 1.08. The company has a quick ratio of 1.25, a current ratio of 2.41 and a debt-to-equity ratio of 0.78.

Zimmer Biomet (NYSE:ZBH) last announced its earnings results on Friday, July 27th. The medical equipment provider reported $1.92 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.88 by $0.04. Zimmer Biomet had a net margin of 21.67% and a return on equity of 13.53%. The business had revenue of $2.01 billion for the quarter, compared to analyst estimates of $1.99 billion. During the same quarter last year, the business earned $2.08 earnings per share. The company’s revenue for the quarter was up 3.0% compared to the same quarter last year. Equities research analysts anticipate that Zimmer Biomet will post 7.66 EPS for the current fiscal year.

In other Zimmer Biomet news, VP Chad F. Phipps sold 30,100 shares of Zimmer Biomet stock in a transaction dated Friday, September 21st. The shares were sold at an average price of $132.37, for a total transaction of $3,984,337.00. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Bryan C. Hanson bought 410 shares of Zimmer Biomet stock in a transaction on Friday, August 31st. The shares were purchased at an average cost of $123.03 per share, for a total transaction of $50,442.30. Following the completion of the purchase, the chief executive officer now directly owns 25,487 shares of the company’s stock, valued at $3,135,665.61. The disclosure for this purchase can be found here. 0.71% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of the business. MainStreet Investment Advisors LLC grew its holdings in Zimmer Biomet by 8.9% during the 2nd quarter. MainStreet Investment Advisors LLC now owns 4,881 shares of the medical equipment provider’s stock worth $544,000 after acquiring an additional 399 shares in the last quarter. Boltwood Capital Management grew its holdings in Zimmer Biomet by 5.7% during the 3rd quarter. Boltwood Capital Management now owns 7,788 shares of the medical equipment provider’s stock worth $1,023,000 after acquiring an additional 420 shares in the last quarter. Bradley Foster & Sargent Inc. CT grew its holdings in Zimmer Biomet by 6.7% during the 2nd quarter. Bradley Foster & Sargent Inc. CT now owns 6,773 shares of the medical equipment provider’s stock worth $755,000 after acquiring an additional 423 shares in the last quarter. TD Asset Management Inc. grew its holdings in Zimmer Biomet by 0.7% during the 2nd quarter. TD Asset Management Inc. now owns 61,859 shares of the medical equipment provider’s stock worth $6,894,000 after acquiring an additional 425 shares in the last quarter. Finally, MUFG Americas Holdings Corp grew its holdings in Zimmer Biomet by 18.0% during the 2nd quarter. MUFG Americas Holdings Corp now owns 2,906 shares of the medical equipment provider’s stock worth $324,000 after acquiring an additional 443 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc, together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental.

See Also: Compound Annual Growth Rate (CAGR)

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