Stryker (SYK) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Stryker (NYSE:SYK) from a buy rating to a hold rating in a research report released on Friday morning, Zacks.com reports.

According to Zacks, “Stryker has outperformed the industry in a year. The company continues to gain from its core MedSurg unit which put up a solid show in recent times. Additionally, strength in flagship Mako platform has consistently favored the company. Management is optimistic about the recent K2M acquisition which drove the core Neurotechnology & Spine unit in recent times. Solid international growth also buoys optimism. Expansion in operating margin is a positive while a strong view for 2019 is indicative of brighter prospects ahead. On the flip side, contraction in gross margin raises concern. Additionally, revenues in the last reported quarter were impacted by unfavorable foreign currency movement. Pricing pressure also continues to plague Stryker. Stiff competition in the MedTech space remains a headwind for the company. The stock is overvalued at the moment.”

A number of other brokerages have also recently commented on SYK. BTIG Research lifted their price target on Stryker to $211.00 and gave the stock a buy rating in a research report on Monday, March 18th. Deutsche Bank started coverage on Stryker in a research report on Wednesday, January 2nd. They set a buy rating and a $179.00 price target for the company. Evercore ISI raised Stryker from an in-line rating to an outperform rating and set a $156.75 price target for the company in a research report on Wednesday, January 2nd. JPMorgan Chase & Co. lifted their price target on Stryker from $200.00 to $215.00 and gave the stock an overweight rating in a research report on Tuesday, March 19th. Finally, Barclays set a $203.00 price target on Stryker and gave the stock a buy rating in a research report on Friday, March 8th. Eight equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. The company currently has an average rating of Buy and an average price target of $192.13.

Stryker stock opened at $193.42 on Friday. The company has a quick ratio of 1.41, a current ratio of 2.02 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $72.88 billion, a PE ratio of 26.46, a price-to-earnings-growth ratio of 2.40 and a beta of 0.88. Stryker has a 1-year low of $144.75 and a 1-year high of $199.85.

Stryker (NYSE:SYK) last posted its quarterly earnings data on Tuesday, January 29th. The medical technology company reported $2.18 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.15 by $0.03. The firm had revenue of $3.80 billion during the quarter, compared to analysts’ expectations of $3.73 billion. Stryker had a return on equity of 27.60% and a net margin of 26.12%. As a group, equities research analysts expect that Stryker will post 8.13 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Friday, March 29th will be issued a $0.52 dividend. The ex-dividend date of this dividend is Thursday, March 28th. This represents a $2.08 annualized dividend and a dividend yield of 1.08%. Stryker’s dividend payout ratio (DPR) is presently 28.45%.

In other news, VP Katherine Ann Owen sold 29,247 shares of the business’s stock in a transaction dated Friday, March 8th. The stock was sold at an average price of $185.62, for a total value of $5,428,828.14. Following the completion of the transaction, the vice president now owns 11,131 shares of the company’s stock, valued at approximately $2,066,136.22. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Kevin Lobo sold 41,750 shares of the business’s stock in a transaction dated Monday, March 25th. The shares were sold at an average price of $194.11, for a total value of $8,104,092.50. The disclosure for this sale can be found here. In the last three months, insiders sold 131,071 shares of company stock valued at $24,689,161. Insiders own 7.20% of the company’s stock.

Several hedge funds have recently modified their holdings of SYK. ERTS Wealth Advisors LLC acquired a new position in shares of Stryker in the 4th quarter valued at about $25,000. Northwest Wealth Management LLC lifted its holdings in shares of Stryker by 103.6% in the 4th quarter. Northwest Wealth Management LLC now owns 169 shares of the medical technology company’s stock valued at $26,000 after buying an additional 86 shares during the period. Semmax Financial Advisors Inc. acquired a new position in shares of Stryker in the 4th quarter valued at about $28,000. Horan Securities Inc. acquired a new position in shares of Stryker in the 4th quarter valued at about $30,000. Finally, Truehand Inc acquired a new position in shares of Stryker in the 4th quarter valued at about $30,000. 74.58% of the stock is owned by institutional investors and hedge funds.

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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