Stryker Corporation (SYK) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts remain broadly positive: Twenty-four firms give Stryker a consensus “Moderate Buy” rating, with 17 buys, six holds and one strong buy. The average 12-month price target is $370.68, although several firms recently lowered targets or downgraded the stock.
• Recent results exceeded expectations: Stryker reported quarterly EPS of $3.69 versus the $3.49 consensus, while revenue rose 9.4% year over year to $6.59 billion. The company also declared a quarterly dividend of $0.88, representing a 1.3% yield.
• Investors face both recovery potential and risks: The stock has declined sharply from its 52-week high, attracting value-oriented interest, but near-term growth concerns, planned CEO succession, insider selling and a law-firm investigation continue to weigh on sentiment.

Shares of Stryker Corporation (NYSE:SYK - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-four ratings firms that are currently covering the company, MarketBeat reports. Six research analysts have rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $370.68.

Several research firms have recently issued reports on SYK. Wolfe Research downgraded Stryker from an "outperform" rating to a "peer perform" rating in a research note on Thursday, August 13th. BTIG Research reduced their target price on Stryker from $371.00 to $358.00 and set a "buy" rating for the company in a report on Friday, July 31st. Canaccord Genuity Group decreased their target price on Stryker from $400.00 to $385.00 and set a "buy" rating for the company in a research report on Friday, September 18th. Weiss Ratings reiterated a "hold (c)" rating on shares of Stryker in a report on Friday, July 31st. Finally, Wall Street Zen cut shares of Stryker from a "buy" rating to a "hold" rating in a report on Saturday, October 3rd.

Stryker Stock Up 0.1%

Stryker stock opened at $277.27 on Friday. The company has a current ratio of 2.16, a quick ratio of 1.33 and a debt-to-equity ratio of 0.59. Stryker has a 1-year low of $267.00 and a 1-year high of $392.55. The firm's fifty day simple moving average is $304.41 and its 200-day simple moving average is $314.34. The company has a market capitalization of $106.35 billion, a P/E ratio of 28.73, a P/E/G ratio of 1.75 and a beta of 0.78.

Stryker (NYSE:SYK - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The medical technology company reported $3.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.49 by $0.20. Stryker had a net margin of 14.43% and a return on equity of 23.63%. The firm had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $6.58 billion. During the same period in the prior year, the company posted $3.13 earnings per share. Stryker's revenue for the quarter was up 9.4% on a year-over-year basis. Stryker has set its FY 2026 guidance at 14.950-15.100 EPS. Sell-side analysts forecast that Stryker will post 14.96 earnings per share for the current fiscal year.

Stryker Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be given a $0.88 dividend. This represents a $3.52 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Wednesday, September 30th. Stryker's payout ratio is currently 36.48%.

Key Stryker News

Here are the key news stories impacting Stryker this week:

• Positive Sentiment: Barclays turned bullish on Stryker. Barclays initiated coverage with an “Overweight” rating and separately upgraded the stock to “Strong Buy,” signaling confidence in the company’s long-term medical-device growth prospects. Barclays initiates coverage of Stryker Corporation
• Positive Sentiment: The steep selloff has attracted value-oriented interest. Commentary suggests Stryker may be undervalued after its approximately 26% slide, with its established market position and long-term earnings potential offering support for a recovery thesis. Stryker stock could be cheap after its slide
• Neutral Sentiment: CEO succession is planned for January 1. Kevin Lobo will become executive chairman while Spencer Stiles becomes chief executive. The orderly transition could provide continuity, but investors may remain cautious while assessing Stiles’ strategy and execution. Stryker is changing CEOs
• Negative Sentiment: Near-term growth concerns remain the key overhang. Mar Vista Investment Partners said macroeconomic pressures and worries about Stryker’s near-term growth have overshadowed the company’s long-term quality and competitive strengths. Stryker near-term growth concerns
• Negative Sentiment: A law firm investigation adds headline risk. Pomerantz LLP is investigating potential claims on behalf of Stryker investors. The announcement does not establish wrongdoing, but it could increase uncertainty and weigh on sentiment following the stock’s substantial decline. Pomerantz investigation of Stryker

Insider Activity

In other news, insider Dylan Crotty sold 441 shares of the firm's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $328.61, for a total value of $144,917.01. Following the sale, the insider owned 6,102 shares in the company, valued at approximately $2,005,178.22. This trade represents a 6.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Ronda Stryker sold 50,000 shares of the business's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $340.10, for a total transaction of $17,005,000.00. Following the transaction, the director directly owned 2,251,375 shares in the company, valued at $765,692,637.50. This trade represents a 2.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 351,267 shares of company stock valued at $118,197,701. 4.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Stryker

Several hedge funds have recently made changes to their positions in SYK. Rockland Trust Co. boosted its stake in Stryker by 1.1% during the third quarter. Rockland Trust Co. now owns 3,365 shares of the medical technology company's stock worth $927,000 after buying an additional 36 shares in the last quarter. Envestnet Portfolio Solutions Inc. raised its stake in shares of Stryker by 22.5% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 10,436 shares of the medical technology company's stock valued at $3,286,000 after buying an additional 1,915 shares in the last quarter. Envestnet Asset Management Inc. lifted its holdings in shares of Stryker by 12.2% during the 2nd quarter. Envestnet Asset Management Inc. now owns 650,461 shares of the medical technology company's stock worth $204,790,000 after acquiring an additional 70,634 shares during the period. State Street Corp boosted its position in shares of Stryker by 1.2% during the 2nd quarter. State Street Corp now owns 15,532,565 shares of the medical technology company's stock valued at $4,903,772,000 after acquiring an additional 183,400 shares in the last quarter. Finally, Security National Bank of Sioux City Iowa IA bought a new stake in Stryker in the second quarter valued at about $62,000. Institutional investors own 77.09% of the company's stock.

About Stryker

Stryker Corporation NYSE: SYK is a global medical technology company that develops and manufactures products used in hospitals, surgical centers and other healthcare settings. Founded in 1941 by Dr. Homer Stryker in Kalamazoo, Michigan, the company has grown from an orthopedic device business into a diversified provider of medical technologies.

Stryker's product portfolio includes orthopedic implants and instruments, surgical equipment, neurovascular devices, spine products, patient-handling and emergency-care equipment, operating-room systems, and digital and robotic technologies.

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