OrthoPediatrics Corp. (KIDS) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Seven brokerages rate OrthoPediatrics a consensus “Moderate Buy,” with five buy ratings, one hold and one sell. The average 12-month price target is $26.50, with recent targets ranging from $25 to $35.
• Quarterly results exceeded expectations: OrthoPediatrics reported an adjusted loss of $0.26 per share versus the expected $0.30 loss, while revenue reached $70.51 million compared with the $68.21 million consensus estimate. Analysts expect a full-year loss of $1.14 per share.
• Insiders have been selling shares: Company insiders sold approximately 2.1 million shares worth $46.7 million over the past 90 days, while insiders retain a 32.5% ownership stake. Institutional investors own 69.05% of the company.

Shares of OrthoPediatrics Corp. (NASDAQ:KIDS - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the seven research firms that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, one has issued a hold recommendation and five have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $26.50.

A number of research analysts recently weighed in on KIDS shares. BTIG Research reiterated a "buy" rating and issued a $29.00 target price on shares of OrthoPediatrics in a report on Monday, September 14th. Piper Sandler reissued an "overweight" rating and set a $25.00 price target (up from $22.00) on shares of OrthoPediatrics in a research report on Wednesday, August 5th. Needham & Company LLC upped their price target on OrthoPediatrics from $30.00 to $35.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Truist Financial upgraded OrthoPediatrics to a "hold" rating in a report on Thursday, October 1st. Finally, Weiss Ratings upgraded shares of OrthoPediatrics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, August 5th.

OrthoPediatrics Stock Performance

Shares of KIDS stock opened at $22.25 on Thursday. OrthoPediatrics has a one year low of $14.42 and a one year high of $26.74. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.17 and a current ratio of 4.78. The company has a 50 day moving average price of $23.10 and a 200 day moving average price of $19.86. The firm has a market capitalization of $580.95 million, a price-to-earnings ratio of -13.24 and a beta of 0.99.

OrthoPediatrics (NASDAQ:KIDS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.26) earnings per share for the quarter, topping analysts' consensus estimates of ($0.30) by $0.04. The company had revenue of $70.51 million for the quarter, compared to the consensus estimate of $68.21 million. OrthoPediatrics had a negative net margin of 15.72% and a negative return on equity of 8.10%. Sell-side analysts anticipate that OrthoPediatrics will post -1.14 EPS for the current year.

Insider Transactions at OrthoPediatrics

In related news, major shareholder Jennifer N. Pritzker sold 302,369 shares of the company's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $21.01, for a total transaction of $6,352,772.69. Following the completion of the sale, the insider directly owned 6,201,764 shares of the company's stock, valued at approximately $130,299,061.64. This represents a 4.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David R. Pelizzon sold 302,369 shares of the company's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $21.01, for a total transaction of $6,352,772.69. Following the sale, the director directly owned 6,201,764 shares of the company's stock, valued at approximately $130,299,061.64. This trade represents a 4.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 2,100,000 shares of company stock valued at $46,747,931 over the last 90 days. Corporate insiders own 32.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC increased its stake in OrthoPediatrics by 70.3% during the 3rd quarter. GAMMA Investing LLC now owns 1,165 shares of the company's stock worth $26,000 after buying an additional 481 shares during the period. Waverly Advisors LLC lifted its holdings in OrthoPediatrics by 6.7% in the 2nd quarter. Waverly Advisors LLC now owns 12,366 shares of the company's stock worth $237,000 after buying an additional 775 shares in the last quarter. Legal & General Group Plc purchased a new position in OrthoPediatrics in the 2nd quarter valued at about $34,000. Quantinno Capital Management LP purchased a new position in OrthoPediatrics in the 1st quarter valued at about $160,000. Finally, R Squared Ltd purchased a new position in OrthoPediatrics in the 1st quarter valued at about $212,000. Institutional investors and hedge funds own 69.05% of the company's stock.

OrthoPediatrics Company Profile

OrthoPediatrics Corp. is a medical device company focused exclusively on developing and commercializing orthopedic products for children. Headquartered in Warsaw, Indiana, the company designs implants and instruments intended to address the distinct anatomical and clinical needs of pediatric patients, including those whose bones are still growing.

Its product portfolio includes systems for pediatric trauma and deformity correction, scoliosis treatment, limb reconstruction, and pediatric sports medicine.

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