Stryker (SYK) Stock Rating Lowered by Zacks Investment Research

Stryker (NYSE:SYK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Stryker continues to gain from its core MedSurg unit which put up a strong show in the reported quarter. Additionally, strength in flagship Mako platform continues to favor the company. Moreover, its K2M acquisition drove the core Neurotechnology & Spine unit in the quarter under review. Solid international growth also buoys optimism. Expansion in operating margin is a positive while strong outlook for 2019 is indicative of bright prospects. Stryker has outperformed the industry in a year’s time. Stryker exited the first quarter of 2019 on a solid note, with earnings surpassing the consensus mark and revenues increasing on a year-over-year basis. However, contraction in gross margin raises concern. Additionally, revenues in the first quarter were impacted by unfavorable foreign currency movement. Pricing pressure also continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.”

SYK has been the topic of a number of other reports. SunTrust Banks lifted their price objective on shares of Stryker to $205.00 and gave the company a “positive” rating in a research report on Monday, February 4th. Royal Bank of Canada lifted their price objective on shares of Stryker from $184.00 to $204.00 and gave the company an “outperform” rating in a research report on Monday, March 11th. Credit Suisse Group upgraded shares of Stryker to an “outperform” rating in a research report on Thursday, January 31st. Wells Fargo & Co lifted their price objective on shares of Stryker from $214.00 to $219.00 and gave the company an “outperform” rating in a research report on Monday, April 1st. Finally, Piper Jaffray Companies reiterated an “overweight” rating and issued a $205.00 price objective on shares of Stryker in a research report on Friday, March 1st. Seven equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $196.85.

Shares of SYK traded up $1.73 during mid-day trading on Tuesday, reaching $186.04. 19,622 shares of the company’s stock were exchanged, compared to its average volume of 1,367,305. The company has a current ratio of 2.12, a quick ratio of 1.30 and a debt-to-equity ratio of 0.68. The firm has a market cap of $68.70 billion, a PE ratio of 25.41, a price-to-earnings-growth ratio of 2.24 and a beta of 0.84. Stryker has a 52-week low of $144.75 and a 52-week high of $199.85.

Stryker (NYSE:SYK) last announced its earnings results on Tuesday, April 23rd. The medical technology company reported $1.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04. The business had revenue of $3.52 billion for the quarter, compared to analyst estimates of $3.51 billion. Stryker had a net margin of 25.38% and a return on equity of 26.72%. The company’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period last year, the firm posted $1.68 earnings per share. As a group, equities research analysts forecast that Stryker will post 8.15 EPS for the current fiscal year.

In other Stryker news, insider Timothy J. Scannell sold 4,666 shares of the firm’s stock in a transaction on Thursday, May 16th. The stock was sold at an average price of $186.71, for a total value of $871,188.86. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Yin C. Becker sold 15,240 shares of the firm’s stock in a transaction on Thursday, March 21st. The shares were sold at an average price of $198.03, for a total value of $3,017,977.20. Following the completion of the sale, the vice president now directly owns 16,577 shares of the company’s stock, valued at approximately $3,282,743.31. The disclosure for this sale can be found here. In the last three months, insiders sold 111,550 shares of company stock valued at $21,376,317. 7.20% of the stock is owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in the business. Oregon Public Employees Retirement Fund raised its stake in shares of Stryker by 8,029.5% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 6,075,473 shares of the medical technology company’s stock worth $39,000 after buying an additional 6,000,739 shares during the last quarter. Norges Bank acquired a new position in shares of Stryker during the 4th quarter worth $474,132,000. BlackRock Inc. raised its stake in shares of Stryker by 4.1% during the 4th quarter. BlackRock Inc. now owns 24,882,912 shares of the medical technology company’s stock worth $3,900,399,000 after buying an additional 975,678 shares during the last quarter. FMR LLC raised its stake in shares of Stryker by 13.4% during the 1st quarter. FMR LLC now owns 6,728,182 shares of the medical technology company’s stock worth $1,328,951,000 after buying an additional 793,560 shares during the last quarter. Finally, GQG Partners LLC acquired a new position in shares of Stryker during the 4th quarter worth $116,175,000. 74.71% of the stock is owned by institutional investors.

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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