Truist Financial Upgrades Edwards Lifesciences (NYSE:EW) to Strong-Buy

Key Points

• Truist Financial upgraded Edwards Lifesciences from “hold” to “strong buy.” Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $101.88.
• Edwards beat quarterly estimates, reporting earnings of $0.80 per share versus $0.74 expected and revenue of $1.72 billion versus $1.68 billion expected. Revenue increased 10.5% year over year.
• Clinical updates offered potential growth support: trial results showed benefits from Edwards’ PASCAL tricuspid repair system and TAVR for moderate aortic stenosis, though RBC questioned whether the TAVR findings would significantly expand the market.

Edwards Lifesciences (NYSE:EW - Get Free Report) was upgraded by research analysts at Truist Financial from a "hold" rating to a "strong-buy" rating in a note issued to investors on Wednesday, Zacks reports.

Several other brokerages also recently commented on EW. Deutsche Bank Aktiengesellschaft set a $104.00 target price on shares of Edwards Lifesciences in a research note on Tuesday, October 27th. Rothschild & Co Redburn lifted their price target on shares of Edwards Lifesciences from $99.00 to $102.00 and gave the company a "buy" rating in a report on Monday, July 27th. Leerink Partners raised shares of Edwards Lifesciences from a "market perform" rating to an "outperform" rating and lifted their price target for the company from $87.00 to $101.00 in a report on Friday, July 24th. Barclays raised shares of Edwards Lifesciences to a "strong-buy" rating in a research note on Wednesday, October 7th. Finally, The Goldman Sachs Group raised their price objective on shares of Edwards Lifesciences from $98.00 to $102.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Edwards Lifesciences has an average rating of "Moderate Buy" and an average target price of $101.88.

Edwards Lifesciences Price Performance

Edwards Lifesciences stock opened at $99.39 on Wednesday. The business has a 50 day simple moving average of $88.48 and a 200 day simple moving average of $85.61. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.52 and a quick ratio of 3.77. The company has a market capitalization of $57.23 billion, a PE ratio of 57.12, a price-to-earnings-growth ratio of 2.49 and a beta of 0.85. Edwards Lifesciences has a one year low of $74.66 and a one year high of $100.25.

Edwards Lifesciences (NYSE:EW - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The medical research company reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.74 by $0.06. Edwards Lifesciences had a return on equity of 15.68% and a net margin of 15.43%. The firm had revenue of $1.72 billion for the quarter, compared to analysts' expectations of $1.68 billion. During the same period in the prior year, the business posted $0.67 earnings per share. The business's revenue was up 10.5% compared to the same quarter last year. On average, sell-side analysts forecast that Edwards Lifesciences will post 3.00 EPS for the current fiscal year.

Insider Activity at Edwards Lifesciences

In related news, SVP Andrew M. Dahl sold 544 shares of the business's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $91.06, for a total value of $49,536.64. Following the completion of the transaction, the senior vice president owned 14,868 shares in the company, valued at $1,353,880.08. The trade was a 3.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Annette Brüls sold 2,644 shares of the company's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $89.98, for a total value of $237,907.12. Following the transaction, the vice president directly owned 17,984 shares in the company, valued at approximately $1,618,200.32. This represents a 12.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 5,045 shares of company stock valued at $451,596 over the last quarter. Corporate insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Edwards Lifesciences

Large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Edwards Lifesciences during the 2nd quarter worth approximately $5,318,092,000. Bank of New York Mellon Corp bought a new stake in shares of Edwards Lifesciences in the 2nd quarter valued at about $1,274,082,000. Bank of America Corp DE bought a new position in shares of Edwards Lifesciences during the 2nd quarter worth approximately $605,397,000. Deutsche Bank AG acquired a new position in shares of Edwards Lifesciences in the second quarter valued at $516,552,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Edwards Lifesciences by 0.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,488,643 shares of the medical research company's stock valued at $496,503,000 after acquiring an additional 30,495 shares during the period. Institutional investors and hedge funds own 79.46% of the company's stock.

Key Headlines Impacting Edwards Lifesciences

Here are the key news stories impacting Edwards Lifesciences this week:

• Positive Sentiment: Edwards reported third-quarter adjusted earnings of $0.80 per share, above the $0.74 consensus, and revenue of $1.72 billion versus $1.68 billion expected. Revenue grew 10.5% year over year, providing a fundamental boost to sentiment. Earnings results
• Positive Sentiment: New CLASP II TR data showed the PASCAL system for tricuspid valve repair outperformed medical therapy, with benefits sustained through one year. The findings may strengthen the case for the product and support future growth. PASCAL trial results
• Positive Sentiment: Results from the PROGRESS trial indicated TAVR reduced the risk of death or heart-failure events in patients with moderate aortic stenosis, potentially supporting use of the procedure in additional patients. PROGRESS trial results
• Negative Sentiment: RBC said the PROGRESS findings are unlikely to meaningfully expand the market for transcatheter aortic valve replacement, tempering expectations for the trial’s commercial impact. RBC analysis

Edwards Lifesciences Company Profile

Edwards Lifesciences Corporation NYSE: EW is a medical technology company focused on therapies for structural heart disease and critical care. The company develops and manufactures products designed to treat conditions affecting the heart's valves, including aortic, mitral and tricuspid valve disorders.

Its portfolio includes transcatheter aortic valve replacement systems, transcatheter mitral and tricuspid therapies, surgical heart valves and valve-repair technologies. Edwards also provides related delivery systems and other medical devices used by physicians in minimally invasive and open-heart procedures.

Founded in 1958 by Miles Lowell Edwards, the company is headquartered in Irvine, California, and serves healthcare providers and patients internationally.

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