Merit Medical Systems (NASDAQ:MMSI) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Merit Medical Systems from “strong buy” to “hold,” although broader analyst sentiment remains positive with a consensus “moderate buy” rating and an average price target of $100.
• Merit Medical reported quarterly EPS of $1.19, beating estimates of $0.96, while revenue rose 9.5% year over year to $418.84 million.
• The stock opened at $91.18, near its 12-month high of $94.75, and institutional investors own 99.66% of outstanding shares.

Merit Medical Systems (NASDAQ:MMSI - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday, Zacks reports.

Several other equities research analysts have also recently issued reports on MMSI. BTIG Research reissued a "buy" rating and issued a $105.00 target price on shares of Merit Medical Systems in a research report on Tuesday, August 11th. Bank of America boosted their target price on shares of Merit Medical Systems from $92.00 to $97.00 and gave the company a "neutral" rating in a report on Thursday, August 13th. Barrington Research set a $114.00 price target on shares of Merit Medical Systems in a research report on Friday, July 31st. Wells Fargo & Company upped their price target on shares of Merit Medical Systems from $74.00 to $83.00 and gave the stock an "equal weight" rating in a research report on Friday, July 31st. Finally, Weiss Ratings raised shares of Merit Medical Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, October 12th. Eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $100.00.

Merit Medical Systems Stock Performance

NASDAQ MMSI opened at $91.18 on Monday. The business's 50-day moving average price is $88.30 and its 200 day moving average price is $76.33. Merit Medical Systems has a twelve month low of $59.74 and a twelve month high of $94.75. The company has a market capitalization of $5.44 billion, a PE ratio of 37.68, a price-to-earnings-growth ratio of 2.25 and a beta of 0.51. The company has a current ratio of 4.20, a quick ratio of 2.79 and a debt-to-equity ratio of 0.44.

Merit Medical Systems (NASDAQ:MMSI - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The medical instruments supplier reported $1.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.96 by $0.23. Merit Medical Systems had a return on equity of 13.75% and a net margin of 9.22%. The firm had revenue of $418.84 million for the quarter, compared to analyst estimates of $405.25 million. During the same period last year, the company earned $1.01 EPS. The firm's quarterly revenue was up 9.5% on a year-over-year basis. Merit Medical Systems has set its FY 2026 guidance at 4.250-4.350 EPS. On average, research analysts predict that Merit Medical Systems will post 3.84 earnings per share for the current year.

Institutional Investors Weigh In On Merit Medical Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. William Blair Investment Management LLC purchased a new position in Merit Medical Systems in the 2nd quarter worth approximately $78,894,000. Irenic Capital Management LP acquired a new stake in Merit Medical Systems in the second quarter valued at approximately $37,623,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Merit Medical Systems during the second quarter valued at approximately $33,591,000. Bank of New York Mellon Corp purchased a new stake in shares of Merit Medical Systems during the second quarter valued at approximately $28,470,000. Finally, Fifth Third Bancorp lifted its position in shares of Merit Medical Systems by 24,625.6% during the first quarter. Fifth Third Bancorp now owns 313,026 shares of the medical instruments supplier's stock worth $21,577,000 after purchasing an additional 311,760 shares in the last quarter. 99.66% of the stock is currently owned by institutional investors and hedge funds.

Merit Medical Systems Company Profile

Merit Medical Systems, Inc is a medical device company that develops, manufactures and distributes disposable products used in interventional, diagnostic and therapeutic procedures. Its devices are designed for use by healthcare professionals in hospitals, outpatient facilities and other clinical settings.

The company's product portfolio includes devices for vascular access, angiography, intervention, drainage, embolization, oncology and cardiac procedures. Merit also offers products used in peripheral intervention, spine procedures and other specialized areas of minimally invasive medicine, including kits, accessories and related procedural equipment.

Founded in 1987 and headquartered in South Jordan, Utah, Merit Medical serves healthcare providers through a global commercial and manufacturing network.

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