BlackRock Inc. Takes Position in OrthoPediatrics Corp. $KIDS

Key Points

• BlackRock acquired 1.27 million shares of OrthoPediatrics during the second quarter, worth approximately $24.3 million and representing about 4.96% of the company. Institutional investors collectively own roughly 69.05% of KIDS.
• OrthoPediatrics exceeded quarterly expectations, reporting $70.51 million in revenue and a $0.26-per-share loss versus estimates of $68.21 million and a $0.30 loss. Analysts maintain a Moderate Buy consensus with an average price target of $26.44.
• Insider selling remains a concern: insiders sold 1.13 million shares worth approximately $26.1 million over the past 90 days, including recent sales by major shareholders and a director.

BlackRock Inc. purchased a new stake in shares of OrthoPediatrics Corp. (NASDAQ:KIDS - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 1,272,714 shares of the company's stock, valued at approximately $24,347,000. BlackRock Inc. owned approximately 4.96% of OrthoPediatrics at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Millennium Management LLC grew its position in OrthoPediatrics by 48.0% in the 4th quarter. Millennium Management LLC now owns 1,396,495 shares of the company's stock worth $24,802,000 after purchasing an additional 452,840 shares in the last quarter. AIGH Capital Management LLC bought a new position in shares of OrthoPediatrics in the second quarter valued at approximately $5,161,000. Granahan Investment Management LLC increased its position in shares of OrthoPediatrics by 35.1% during the first quarter. Granahan Investment Management LLC now owns 896,741 shares of the company's stock valued at $14,231,000 after acquiring an additional 232,760 shares during the last quarter. Wasatch Advisors LP increased its position in shares of OrthoPediatrics by 56.6% during the second quarter. Wasatch Advisors LP now owns 515,677 shares of the company's stock valued at $9,865,000 after acquiring an additional 186,357 shares during the last quarter. Finally, Deerfield Management Company L.P. lifted its holdings in OrthoPediatrics by 1,153.4% during the third quarter. Deerfield Management Company L.P. now owns 194,109 shares of the company's stock worth $3,597,000 after acquiring an additional 178,623 shares during the period. 69.05% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting OrthoPediatrics

Here are the key news stories impacting OrthoPediatrics this week:

• Positive Sentiment: Wall Street’s consensus rating remains Moderate Buy, with an average price target of $26.44. Piper Sandler maintained an Overweight rating and raised its target to $25, while Needham increased its target to $35 and reiterated Buy. OrthoPediatrics analyst coverage
• Positive Sentiment: Several institutions increased their positions during the first half of the year. Millennium Management raised its stake by 55.3%, Goldman Sachs more than doubled its holdings, and institutional investors collectively own approximately 69.05% of outstanding shares.
• Positive Sentiment: OrthoPediatrics recently exceeded quarterly expectations, reporting revenue of $70.51 million versus the $68.21 million consensus estimate and a loss of $0.26 per share, better than the expected $0.30 loss. This suggests operating results are progressing ahead of forecasts, despite the company remaining unprofitable.
• Neutral Sentiment: The reported transactions appear in multiple director, major-shareholder and beneficial-ownership filings, so some disclosures may represent overlapping ownership records rather than separate sales. The reporting holders still controlled roughly 6.53 million shares after the transactions. SEC ownership filing
• Negative Sentiment: Director David Pelizzon and major shareholder Jennifer N. Pritzker reported sales totaling 326,700 shares on August 28 at an average price of $23.04, worth approximately $7.53 million. The sales reduced reported ownership by 4.76% and may weigh on sentiment by creating an insider-selling overhang.
• Negative Sentiment: The same ownership group also reported sales of 10,131 shares on September 1 at $23.10, valued at about $234,000 per filing. While the 0.15% reduction is modest, the additional selling reinforces the near-term supply concern. OrthoPediatrics insider sale report

OrthoPediatrics Price Performance

Shares of NASDAQ KIDS opened at $22.80 on Thursday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.17 and a current ratio of 4.78. OrthoPediatrics Corp. has a fifty-two week low of $14.42 and a fifty-two week high of $26.74. The stock has a market cap of $595.31 million, a PE ratio of -13.57 and a beta of 0.99. The stock has a fifty day moving average of $21.68 and a 200-day moving average of $18.80.

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

Insider Activity

In related news, major shareholder Squadron Capital Llc sold 10,131 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $23.10, for a total transaction of $234,026.10. Following the completion of the transaction, the insider owned 6,526,633 shares of the company's stock, valued at approximately $150,765,222.30. The trade was a 0.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David R. Pelizzon sold 10,131 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $23.10, for a total transaction of $234,026.10. Following the sale, the director directly owned 6,526,633 shares in the company, valued at $150,765,222.30. This trade represents a 0.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,125,393 shares of company stock worth $26,113,488 over the last ninety days. Company insiders own 32.50% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on KIDS. Weiss Ratings raised OrthoPediatrics from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, August 5th. BTIG Research raised their target price on OrthoPediatrics from $24.00 to $29.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Needham & Company LLC lifted their target price on OrthoPediatrics from $30.00 to $35.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. TD Cowen reiterated a "buy" rating on shares of OrthoPediatrics in a research note on Monday, June 15th. Finally, Truist Financial set a $22.00 price objective on OrthoPediatrics in a report on Wednesday, August 5th. Nine analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $26.44.

OrthoPediatrics Profile

OrthoPediatrics Corp., founded in 2007 and headquartered in Warsaw, Indiana, is a medical device company dedicated exclusively to providing orthopedic solutions for children. The company focuses on developing, manufacturing and marketing a broad portfolio of implants and instruments designed to address a wide range of pediatric conditions, including trauma, deformity correction, spine disorders and sports injuries.

The company's product lines include locking plates and screws for upper and lower extremity reconstruction, intramedullary nails for femur and tibia stabilization, and specialized systems such as the MAGEC Magnetic Growth Rod for treatment of early-onset scoliosis.

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