Edwards Lifesciences (NYSE:EW) Trading Down 4.2% - Should You Sell?

Key Points

• Edwards Lifesciences shares fell 4.2% to $74.50, with trading volume declining significantly to 832,660 shares, down 81% from the average volume.
• Analyst ratings are mixed, with a majority rating the stock as a "Moderate Buy", while target prices range from $80.00 to $86.61.
• In its latest earnings report, Edwards Lifesciences posted $1.53 billion in revenue for the quarter, exceeding estimates, and reported an EPS of $0.67, beating expectations of $0.62.

Edwards Lifesciences Corporation (NYSE:EW - Get Free Report) shares traded down 4.2% during mid-day trading on Wednesday . The stock traded as low as $74.30 and last traded at $74.50. 832,660 shares changed hands during trading, a decline of 81% from the average session volume of 4,474,511 shares. The stock had previously closed at $77.77.

Analyst Upgrades and Downgrades

EW has been the topic of several analyst reports. William Blair raised shares of Edwards Lifesciences to a "strong-buy" rating in a research note on Friday, July 25th. Wall Street Zen downgraded shares of Edwards Lifesciences from a "strong-buy" rating to a "buy" rating in a research note on Monday. Daiwa America raised Edwards Lifesciences from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 29th. Evercore ISI boosted their target price on Edwards Lifesciences from $77.00 to $80.00 and gave the company an "in-line" rating in a research note on Friday, July 25th. Finally, Canaccord Genuity Group upped their target price on Edwards Lifesciences from $75.00 to $81.00 and gave the company a "hold" rating in a report on Friday, July 25th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Edwards Lifesciences presently has an average rating of "Moderate Buy" and a consensus price target of $86.61.

Edwards Lifesciences Price Performance

The firm has a market cap of $44.99 billion, a P/E ratio of 11.01, a price-to-earnings-growth ratio of 3.71 and a beta of 1.07. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.68 and a quick ratio of 3.87. The firm's 50 day moving average is $78.54 and its 200 day moving average is $75.84.

Edwards Lifesciences (NYSE:EW - Get Free Report) last released its earnings results on Thursday, July 24th. The medical research company reported $0.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.05. Edwards Lifesciences had a net margin of 72.96% and a return on equity of 15.01%. The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same period last year, the business earned $0.70 earnings per share. The business's revenue was up 11.9% on a year-over-year basis. Edwards Lifesciences has set its Q3 2025 guidance at 0.540-0.60 EPS. FY 2025 guidance at 2.400-2.500 EPS. As a group, analysts anticipate that Edwards Lifesciences Corporation will post 2.45 earnings per share for the current year.

Insider Transactions at Edwards Lifesciences

In related news, insider Larry L. Wood sold 8,950 shares of the stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $78.06, for a total transaction of $698,637.00. Following the completion of the sale, the insider owned 206,900 shares in the company, valued at approximately $16,150,614. This trade represents a 4.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Daniel J. Lippis sold 4,114 shares of the firm's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $79.46, for a total transaction of $326,898.44. Following the transaction, the vice president directly owned 22,002 shares of the company's stock, valued at $1,748,278.92. The trade was a 15.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.34% of the company's stock.

Institutional Trading of Edwards Lifesciences

Several hedge funds have recently modified their holdings of the company. Parkside Financial Bank & Trust grew its holdings in shares of Edwards Lifesciences by 9.8% in the second quarter. Parkside Financial Bank & Trust now owns 1,455 shares of the medical research company's stock valued at $114,000 after purchasing an additional 130 shares in the last quarter. Prosperity Consulting Group LLC increased its holdings in shares of Edwards Lifesciences by 3.2% in the 2nd quarter. Prosperity Consulting Group LLC now owns 4,304 shares of the medical research company's stock worth $337,000 after buying an additional 132 shares during the last quarter. NewSquare Capital LLC raised its position in shares of Edwards Lifesciences by 57.8% during the 2nd quarter. NewSquare Capital LLC now owns 366 shares of the medical research company's stock valued at $29,000 after buying an additional 134 shares in the last quarter. Empirical Finance LLC lifted its holdings in shares of Edwards Lifesciences by 0.6% in the 2nd quarter. Empirical Finance LLC now owns 21,329 shares of the medical research company's stock valued at $1,668,000 after acquiring an additional 134 shares during the last quarter. Finally, Arlington Trust Co LLC grew its position in Edwards Lifesciences by 1.2% in the first quarter. Arlington Trust Co LLC now owns 11,092 shares of the medical research company's stock worth $804,000 after acquiring an additional 135 shares in the last quarter. 79.46% of the stock is owned by hedge funds and other institutional investors.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names.

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