Capital International Investors Decreases Stake in Zimmer Biomet Holdings, Inc. $ZBH

Key Points

• Capital International Investors trimmed its Zimmer Biomet stake by 5.6% in the fourth quarter, selling 422,841 shares and leaving it with 7.13 million shares valued at about $640.9 million.
• Insider selling also occurred, with SVP Lori Winkler and insider Sang Yi both reducing their holdings in separate transactions.
• Zimmer Biomet’s latest results beat expectations, posting $2.09 EPS on $2.09 billion in revenue, while the company also reiterated FY2026 EPS guidance of 8.40 to 8.55 and declared a quarterly dividend of $0.24 per share.

Capital International Investors reduced its position in Zimmer Biomet Holdings, Inc. (NYSE:ZBH - Free Report) by 5.6% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 7,127,913 shares of the medical equipment provider's stock after selling 422,841 shares during the period. Capital International Investors owned approximately 3.60% of Zimmer Biomet worth $640,942,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC purchased a new position in Zimmer Biomet in the 4th quarter valued at about $87,000. Havemeyer Place LP bought a new position in shares of Zimmer Biomet during the fourth quarter worth about $254,000. Lowe Brockenbrough & Co. Inc. lifted its position in shares of Zimmer Biomet by 15.9% during the fourth quarter. Lowe Brockenbrough & Co. Inc. now owns 7,107 shares of the medical equipment provider's stock worth $639,000 after purchasing an additional 976 shares during the last quarter. Magellan Asset Management Ltd lifted its position in shares of Zimmer Biomet by 6.1% during the fourth quarter. Magellan Asset Management Ltd now owns 636,734 shares of the medical equipment provider's stock worth $57,255,000 after purchasing an additional 36,609 shares during the last quarter. Finally, Daiwa Securities Group Inc. lifted its position in shares of Zimmer Biomet by 3.6% during the fourth quarter. Daiwa Securities Group Inc. now owns 32,066 shares of the medical equipment provider's stock worth $2,883,000 after purchasing an additional 1,100 shares during the last quarter. 88.89% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Zimmer Biomet

In other Zimmer Biomet news, SVP Lori Winkler sold 2,650 shares of the firm's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $94.66, for a total value of $250,849.00. Following the transaction, the senior vice president owned 10,224 shares of the company's stock, valued at $967,803.84. This trade represents a 20.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Sang Yi sold 5,000 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $82.64, for a total transaction of $413,200.00. Following the completion of the transaction, the insider directly owned 27,251 shares in the company, valued at $2,252,022.64. This represents a 15.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.28% of the company's stock.

Wall Street Analyst Weigh In

ZBH has been the topic of several research analyst reports. William Blair initiated coverage on shares of Zimmer Biomet in a research report on Friday, February 20th. They set a "market perform" rating on the stock. UBS Group reaffirmed a "sell" rating and set a $89.00 price target on shares of Zimmer Biomet in a research report on Wednesday, February 11th. Stifel Nicolaus reduced their price target on shares of Zimmer Biomet from $110.00 to $105.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Leerink Partners initiated coverage on shares of Zimmer Biomet in a research report on Monday, April 13th. They set a "hold" rating and a $101.00 price target on the stock. Finally, Citigroup reduced their price target on shares of Zimmer Biomet from $95.00 to $93.00 and set a "neutral" rating on the stock in a research report on Thursday, May 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $102.70.

Zimmer Biomet Stock Performance

Shares of NYSE ZBH opened at $87.50 on Monday. The company has a quick ratio of 0.95, a current ratio of 1.73 and a debt-to-equity ratio of 0.50. The firm's 50-day moving average price is $87.68 and its two-hundred day moving average price is $90.49. Zimmer Biomet Holdings, Inc. has a 52-week low of $79.12 and a 52-week high of $108.29. The stock has a market capitalization of $16.93 billion, a P/E ratio of 22.73, a P/E/G ratio of 2.02 and a beta of 0.47.

Zimmer Biomet (NYSE:ZBH - Get Free Report) last issued its earnings results on Tuesday, April 28th. The medical equipment provider reported $2.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.86 by $0.23. Zimmer Biomet had a net margin of 9.05% and a return on equity of 13.24%. The firm had revenue of $2.09 billion for the quarter, compared to analysts' expectations of $2.07 billion. During the same quarter last year, the company posted $1.81 earnings per share. Zimmer Biomet's revenue was up 9.3% on a year-over-year basis. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. As a group, sell-side analysts forecast that Zimmer Biomet Holdings, Inc. will post 8.49 earnings per share for the current year.

Zimmer Biomet Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, June 25th will be issued a $0.24 dividend. The ex-dividend date of this dividend is Thursday, June 25th. This represents a $0.96 dividend on an annualized basis and a yield of 1.1%. Zimmer Biomet's dividend payout ratio (DPR) is currently 24.94%.

Zimmer Biomet Profile

Zimmer Biomet NYSE: ZBH is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company's product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

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