ABC Arbitrage SA Buys New Shares in Stryker Corporation (NYSE:SYK)

Key Points

• ABC Arbitrage SA has acquired a new stake in Stryker Corporation, purchasing 3,280 shares valued at approximately $1.22 million in the first quarter.
• Stryker's most recent quarterly earnings report showed earnings per share of $3.13, exceeding expectations, with revenue of $6.02 billion and an 11.1% increase compared to the prior year.
• Analysts have set new price targets for Stryker, with Wells Fargo raising its target to $445 and an average price target of $430.10 across multiple ratings.

ABC Arbitrage SA bought a new position in shares of Stryker Corporation (NYSE:SYK - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 3,280 shares of the medical technology company's stock, valued at approximately $1,221,000.

A number of other hedge funds also recently added to or reduced their stakes in the business. Capital A Wealth Management LLC purchased a new position in shares of Stryker in the 4th quarter valued at $26,000. Goodman Advisory Group LLC purchased a new position in shares of Stryker in the 1st quarter valued at $32,000. City Holding Co. grew its position in shares of Stryker by 528.6% in the 1st quarter. City Holding Co. now owns 88 shares of the medical technology company's stock valued at $33,000 after buying an additional 74 shares during the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in shares of Stryker in the 1st quarter valued at $40,000. Finally, Itau Unibanco Holding S.A. purchased a new position in shares of Stryker in the 4th quarter valued at $42,000. 77.09% of the stock is currently owned by institutional investors and hedge funds.

Stryker Price Performance

SYK stock traded up $1.36 during midday trading on Friday, hitting $377.73. 972,332 shares of the stock were exchanged, compared to its average volume of 1,333,167. The stock's 50-day moving average price is $387.17 and its 200-day moving average price is $380.08. The stock has a market cap of $144.41 billion, a price-to-earnings ratio of 50.03, a PEG ratio of 2.74 and a beta of 0.91. Stryker Corporation has a fifty-two week low of $322.03 and a fifty-two week high of $406.19. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.06 and a current ratio of 1.78.

Stryker (NYSE:SYK - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The medical technology company reported $3.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.07 by $0.06. The firm had revenue of $6.02 billion during the quarter, compared to analysts' expectations of $5.92 billion. Stryker had a return on equity of 23.94% and a net margin of 12.25%. Stryker's revenue was up 11.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.81 earnings per share. Research analysts predict that Stryker Corporation will post 13.47 earnings per share for the current year.

Stryker Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th will be given a $0.84 dividend. This represents a $3.36 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, September 30th. Stryker's payout ratio is currently 44.50%.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Wells Fargo & Company increased their target price on shares of Stryker from $435.00 to $445.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Sanford C. Bernstein set a $450.00 price objective on shares of Stryker in a research report on Monday, May 5th. BTIG Research reissued a "buy" rating on shares of Stryker in a research report on Monday, July 14th. Citigroup reissued a "buy" rating and set a $455.00 price objective (up from $443.00) on shares of Stryker in a research report on Thursday, May 22nd. Finally, Needham & Company LLC raised their price objective on shares of Stryker from $442.00 to $448.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Four equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $430.10.

Insider Buying and Selling at Stryker

In other news, Director Ronda E. Stryker sold 200,000 shares of the business's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $376.45, for a total value of $75,290,000.00. Following the completion of the transaction, the director owned 3,222,108 shares of the company's stock, valued at $1,212,962,556.60. The trade was a 5.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 5.90% of the stock is currently owned by corporate insiders.

About Stryker

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries.