Globus Medical (NYSE:GMED) Downgraded by BMO Capital Markets to Market Perform

Key Points

• BMO Capital Markets downgraded Globus Medical from Outperform to Market Perform and cut its price target from $94 to $78, implying 3.85% downside from the stock’s current price.
• Third-quarter EPS of $1.23 beat the $1.20 consensus, but revenue of $763.7 million missed estimates of $792.4 million and fell 0.7% year over year. Full-year revenue guidance also came in below analyst expectations, while EPS guidance of $4.95–$5.05 was broadly in line.
• Analyst views remain mixed: MarketBeat reports an average rating of Moderate Buy and an average price target of $98.23.

Globus Medical (NYSE:GMED - Get Free Report) was downgraded by BMO Capital Markets from an "outperform" rating to a "market perform" rating in a research note issued on Friday, MarketBeat reports. They presently have a $78.00 price target on the medical device company's stock, down from their previous price target of $94.00. BMO Capital Markets's price target would suggest a potential downside of 3.85% from the stock's current price.

GMED has been the subject of a number of other reports. Wells Fargo & Company decreased their price objective on Globus Medical from $103.00 to $99.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. UBS Group initiated coverage on shares of Globus Medical in a research report on Tuesday, July 28th. They issued a "neutral" rating and a $82.00 price target for the company. Zacks Research raised shares of Globus Medical from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 10th. BTIG Research restated a "neutral" rating on shares of Globus Medical in a report on Friday, September 18th. Finally, Truist Financial lowered their price objective on shares of Globus Medical from $115.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Globus Medical has an average rating of "Moderate Buy" and an average price target of $98.23.

Globus Medical Stock Performance

NYSE GMED opened at $81.13 on Friday. The firm's 50 day moving average price is $77.44 and its two-hundred day moving average price is $83.29. Globus Medical has a twelve month low of $60.36 and a twelve month high of $101.40. The stock has a market cap of $10.89 billion, a price-to-earnings ratio of 20.75, a PEG ratio of 1.40 and a beta of 0.98.

Globus Medical (NYSE:GMED - Get Free Report) last released its earnings results on Thursday, November 5th. The medical device company reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.20 by $0.03. The company had revenue of $763.72 million during the quarter, compared to analyst estimates of $792.39 million. Globus Medical had a return on equity of 14.57% and a net margin of 17.02%. The company's revenue for the quarter was down .7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.18 earnings per share. Globus Medical has set its FY 2026 guidance at 4.950-5.050 EPS. On average, research analysts forecast that Globus Medical will post 4.99 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director James R. Tobin sold 30,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $74.58, for a total transaction of $2,237,400.00. Following the completion of the sale, the director directly owned 15,000 shares in the company, valued at approximately $1,118,700. This trade represents a 66.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ann Rhoads sold 5,000 shares of Globus Medical stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $85.00, for a total value of $425,000.00. Following the sale, the director directly owned 35,384 shares of the company's stock, valued at approximately $3,007,640. The trade was a 12.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 60,000 shares of company stock worth $4,838,400. Corporate insiders own 18.38% of the company's stock.

Institutional Investors Weigh In On Globus Medical

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Sanctuary Advisors LLC lifted its holdings in Globus Medical by 2.3% in the 1st quarter. Sanctuary Advisors LLC now owns 6,611 shares of the medical device company's stock worth $570,000 after purchasing an additional 151 shares during the last quarter. Summitry LLC boosted its position in Globus Medical by 2.6% during the first quarter. Summitry LLC now owns 8,205 shares of the medical device company's stock worth $707,000 after purchasing an additional 211 shares during the period. Central Pacific Bank Trust Division boosted its position in Globus Medical by 7.8% during the third quarter. Central Pacific Bank Trust Division now owns 3,057 shares of the medical device company's stock worth $229,000 after purchasing an additional 220 shares during the period. Arizona State Retirement System grew its holdings in Globus Medical by 0.8% during the second quarter. Arizona State Retirement System now owns 31,077 shares of the medical device company's stock valued at $2,455,000 after purchasing an additional 252 shares during the last quarter. Finally, Angeles Wealth Management LLC grew its holdings in Globus Medical by 5.0% during the second quarter. Angeles Wealth Management LLC now owns 5,894 shares of the medical device company's stock valued at $466,000 after purchasing an additional 280 shares during the last quarter. 95.16% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Globus Medical

Here are the key news stories impacting Globus Medical this week:

• Positive Sentiment: Third-quarter EPS was $1.23, above the $1.20 consensus and up from $1.18 a year earlier. Globus also increased its share-repurchase authorization by $500 million, potentially supporting shareholder returns. Third-quarter results and repurchase announcement
• Positive Sentiment: The recently announced acquisition of Synaptive Medical adds cranial-neurosurgery technology and could broaden Globus Medical’s position in that market. Synaptive Medical acquisition
• Neutral Sentiment: Director Ann Rhoads sold 5,000 shares for $425,000, reducing her holdings by 12.38%. One director’s sale is not necessarily a signal about the company’s outlook. SEC ownership filing
• Negative Sentiment: Third-quarter revenue of $763.7 million missed the $792.4 million analyst estimate and declined 0.7% year over year. Full-year revenue guidance of $3.1 billion is also below the $3.2 billion consensus. EPS guidance of $4.95–$5.05 is broadly in line with expectations, but the sales miss and softer revenue outlook may outweigh the earnings beat. Q3 sales and earnings report

Globus Medical Company Profile

Globus Medical, Inc develops and commercializes musculoskeletal solutions for surgeons, hospitals and patients. The company focuses primarily on spinal, orthopedic trauma and other orthopedic procedures, offering implants, instruments and related technologies designed to support surgical treatment and improve clinical outcomes.

Its product portfolio includes spinal implants and enabling technologies, including the ExcelsiusGPS robotic navigation platform and Excelsius3D imaging system.

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