Avanos Medical (NYSE:AVNS) Reaches New 52-Week Low Following Weak Earnings

Key Points

• Avanos Medical shares dropped to a new 52-week low of $9.30 following a quarterly earnings report that failed to meet analyst expectations, with EPS at $0.17 compared to the forecast of $0.18.
• The company's revenue for the quarter was $175 million, exceeding the expected $165.5 million, but it also reported a significant net margin of -55.80%.
• Despite the poor performance, institutional investors continue to hold a majority stake, owning 95.17% of the company, with entities like JPMorgan increasing their holdings by 189.8% during the fourth quarter.

Avanos Medical, Inc. (NYSE:AVNS - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $9.30 and last traded at $9.98, with a volume of 1634728 shares traded. The stock had previously closed at $11.25.

The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.01). The firm had revenue of $175.00 million during the quarter, compared to analyst estimates of $165.50 million. Avanos Medical had a negative net margin of 66.89% and a positive return on equity of 6.16%. During the same period in the prior year, the firm earned $0.34 earnings per share.

Wall Street Analyst Weigh In

Separately, Wall Street Zen downgraded Avanos Medical from a "strong-buy" rating to a "buy" rating in a research report on Saturday.

Hedge Funds Weigh In On Avanos Medical

A number of institutional investors and hedge funds have recently made changes to their positions in AVNS. Armistice Capital LLC acquired a new position in shares of Avanos Medical during the first quarter worth about $28,660,000. T. Rowe Price Investment Management Inc. grew its position in shares of Avanos Medical by 24.8% during the first quarter. T. Rowe Price Investment Management Inc. now owns 3,757,576 shares of the company's stock worth $53,847,000 after buying an additional 746,264 shares in the last quarter. Clark Estates Inc. NY acquired a new position in shares of Avanos Medical during the first quarter worth about $7,077,000. Millennium Management LLC grew its position in shares of Avanos Medical by 508.3% during the first quarter. Millennium Management LLC now owns 547,740 shares of the company's stock worth $7,849,000 after buying an additional 457,703 shares in the last quarter. Finally, Pacer Advisors Inc. acquired a new position in shares of Avanos Medical during the first quarter worth about $6,056,000. 95.17% of the stock is owned by institutional investors and hedge funds.

Avanos Medical Stock Performance

The firm has a market capitalization of $499.96 million, a price-to-earnings ratio of -1.07 and a beta of 1.12. The company has a quick ratio of 1.56, a current ratio of 2.64 and a debt-to-equity ratio of 0.12. The stock has a 50-day moving average price of $11.92 and a 200 day moving average price of $13.41.

About Avanos Medical

Avanos Medical, Inc, a medical technology company, offers medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers a portfolio of chronic care products that include digestive health products, such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions, and NeoMed neonatal and pediatric feeding solutions.