Stryker (SYK) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Stryker (NYSE:SYK) from a buy rating to a hold rating in a research report report published on Friday morning.

According to Zacks, “Stryker outperformed the industry in a year’s time. The company’s strong first-quarter 2018 show was largely backed by solid segmental performance. Moreover, high domestic and international growth in revenues is also encouraging. Continued demand for the Mako Total Knee Platform and a diversified product portfolio have consistently driven the company’s growth. A strong guidance for the second quarter and full year buoys optimism. Moreover, surging operating margins reflect the company’s bullish prospects. However, supply issues in the Puerto Rico facility and a declining gross margin raise concern. Furthermore, the recall of the Oral Care lineup is a major drawback. The company is currently being plagued by foreign currency volatility and reduced demand for healthcare products. Acquisition risks also add to the woes.”

Other equities analysts have also issued reports about the company. Needham & Company LLC restated a hold rating on shares of Stryker in a research report on Wednesday, January 31st. Piper Jaffray Companies restated a buy rating and set a $170.00 target price on shares of Stryker in a research report on Wednesday, January 31st. Guggenheim restated a buy rating on shares of Stryker in a research report on Wednesday, January 31st. Cantor Fitzgerald restated a hold rating and set a $163.00 target price on shares of Stryker in a research report on Tuesday, January 30th. Finally, Citigroup restated a market perform rating and set a $165.00 target price (up from $156.00) on shares of Stryker in a research report on Thursday, February 1st. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and fifteen have issued a buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $170.65.

Stryker stock opened at $172.81 on Friday. The stock has a market cap of $64.58 billion, a PE ratio of 26.63, a P/E/G ratio of 2.45 and a beta of 0.70. Stryker has a 1 year low of $134.79 and a 1 year high of $173.47. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.64 and a quick ratio of 1.08.

Stryker (NYSE:SYK) last posted its earnings results on Thursday, April 26th. The medical technology company reported $1.68 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.60 by $0.08. The company had revenue of $3.24 billion during the quarter, compared to analyst estimates of $3.20 billion. Stryker had a return on equity of 25.65% and a net margin of 8.00%. The company’s revenue for the quarter was up 9.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.48 EPS. equities analysts forecast that Stryker will post 7.23 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 31st. Stockholders of record on Friday, June 29th will be issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 1.09%. The ex-dividend date is Thursday, June 28th. Stryker’s dividend payout ratio (DPR) is presently 28.97%.

In other Stryker news, VP Yin C. Becker sold 23,221 shares of the business’s stock in a transaction that occurred on Friday, March 9th. The stock was sold at an average price of $165.96, for a total value of $3,853,757.16. Following the sale, the vice president now owns 10,499 shares in the company, valued at approximately $1,742,414.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Glenn S. Boehnlein sold 750 shares of the business’s stock in a transaction that occurred on Monday, April 16th. The shares were sold at an average price of $160.00, for a total value of $120,000.00. Following the completion of the sale, the chief financial officer now owns 3,535 shares in the company, valued at approximately $565,600. The disclosure for this sale can be found here. Insiders have sold a total of 134,200 shares of company stock worth $22,151,180 in the last quarter. 7.40% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SYK. AustralianSuper Pty Ltd bought a new stake in Stryker in the 1st quarter valued at approximately $133,467,000. BlackRock Inc. lifted its stake in Stryker by 2.0% in the 1st quarter. BlackRock Inc. now owns 23,905,172 shares of the medical technology company’s stock valued at $3,846,819,000 after acquiring an additional 458,485 shares in the last quarter. WCM Investment Management CA bought a new stake in Stryker in the 1st quarter valued at approximately $70,349,000. Carmignac Gestion lifted its stake in Stryker by 36.6% in the 1st quarter. Carmignac Gestion now owns 1,599,867 shares of the medical technology company’s stock valued at $257,451,000 after acquiring an additional 428,789 shares in the last quarter. Finally, Amundi Pioneer Asset Management Inc. bought a new stake in Stryker in the 4th quarter valued at approximately $49,056,000. Hedge funds and other institutional investors own 75.98% 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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