Engine Capital Management LP Acquires 137,858 Shares of Orthofix Medical Inc. $OFIX

Key Points

• Engine Capital Management increased its Orthofix Medical stake by 3.2%, purchasing 137,858 shares to reach 4.39 million shares, or approximately 10.86% of the company. Institutional investors and hedge funds collectively own 89.76% of OFIX.
• Analyst sentiment remains mixed: Barrington Research raised its price target to $17, while other firms maintained hold or sell ratings. The stock carries an average rating of “Hold” and an average price target of $16.
• Orthofix reported quarterly revenue of $196.71 million and an adjusted loss of $0.52 per share, exceeding analysts’ expectations. Shares opened at $11.90, up 5.8%, but the company continues to post negative margins and analysts expect a full-year loss.

Engine Capital Management LP lifted its holdings in Orthofix Medical Inc. (NASDAQ:OFIX - Free Report) by 3.2% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 4,390,779 shares of the medical device company's stock after buying an additional 137,858 shares during the quarter. Orthofix Medical makes up 6.1% of Engine Capital Management LP's portfolio, making the stock its 7th biggest position. Engine Capital Management LP owned approximately 10.86% of Orthofix Medical worth $50,362,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of OFIX. Kestra Advisory Services LLC acquired a new stake in Orthofix Medical during the fourth quarter worth about $56,000. CWM LLC boosted its stake in Orthofix Medical by 136.4% in the fourth quarter. CWM LLC now owns 4,538 shares of the medical device company's stock valued at $69,000 after acquiring an additional 2,618 shares during the period. Strs Ohio acquired a new position in Orthofix Medical in the first quarter valued at approximately $150,000. Mackenzie Financial Corp bought a new position in shares of Orthofix Medical during the third quarter valued at approximately $148,000. Finally, Diversified Trust Co. bought a new position in shares of Orthofix Medical during the fourth quarter valued at approximately $159,000. 89.76% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on OFIX. Barrington Research raised their price target on Orthofix Medical from $15.00 to $17.00 and gave the stock an "outperform" rating in a report on Monday, July 6th. Wall Street Zen lowered Orthofix Medical from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Orthofix Medical in a research report on Friday, July 17th. TD Cowen reiterated a "hold" rating on shares of Orthofix Medical in a research note on Thursday, May 21st. Finally, Stifel Nicolaus reduced their price target on shares of Orthofix Medical from $18.00 to $15.00 and set a "buy" rating for the company in a report on Friday, May 22nd. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Orthofix Medical currently has an average rating of "Hold" and an average target price of $16.00.

Orthofix Medical Stock Up 5.8%

Shares of Orthofix Medical stock opened at $11.90 on Tuesday. The business's fifty day moving average price is $10.32 and its two-hundred day moving average price is $11.91. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.87 and a quick ratio of 1.76. The company has a market capitalization of $481.00 million, a P/E ratio of -7.88 and a beta of 0.71. Orthofix Medical Inc. has a 1-year low of $8.85 and a 1-year high of $16.99.

Orthofix Medical (NASDAQ:OFIX - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The medical device company reported ($0.52) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.68) by $0.16. Orthofix Medical had a negative return on equity of 13.44% and a negative net margin of 7.27%.The company had revenue of $196.71 million during the quarter, compared to analyst estimates of $196.40 million. As a group, research analysts forecast that Orthofix Medical Inc. will post -1.4 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Engine Capital Management, Lp bought 30,000 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was purchased at an average price of $12.18 per share, for a total transaction of $365,400.00. Following the transaction, the insider directly owned 3,848,573 shares of the company's stock, valued at approximately $46,875,619.14. This represents a 0.79% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Aviva Mcpherron sold 3,670 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $9.38, for a total transaction of $34,424.60. Following the sale, the insider owned 66,330 shares in the company, valued at $622,175.40. This trade represents a 5.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders purchased 189,896 shares of company stock valued at $2,293,970 over the last 90 days. 2.70% of the stock is currently owned by company insiders.

About Orthofix Medical

Orthofix Medical Inc NASDAQ: OFIX is a global medical device company focused on the design and development of innovative orthopedic and spinal solutions. The company's core business is divided into two segments: spine and orthopedics. In the spine segment, Orthofix offers a range of titanium implants, biologics and portable bone growth stimulation devices designed to support spinal fusion, deformity correction and minimally invasive procedures. Its orthopedic segment encompasses products for fracture fixation, external fixation systems, trauma care and sports medicine, providing surgeons with implantable devices and instruments for complex bone reconstruction and healing.

Orthofix's product portfolio includes strut systems, bone growth stimulators, interbody fusion devices and fixation hardware that address various indications such as degenerative disc disease, spinal deformities, non-unions and long-bone fractures.

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