Burgundy Asset Management Ltd. Raises Holdings in Globus Medical, Inc. $GMED

Key Points

• Burgundy Asset Management Ltd. increased its stake in Globus Medical, Inc. by 7.0%, now owning 2,801,747 shares, making it the 8th largest holding of the firm.
• The company is reported to have a consensus rating of "Moderate Buy" with an average target price of $87.64, despite various analysts lowering their price targets recently.
• Globus Medical initiated a $500 million stock buyback plan, which is typically an indication that the company's board believes its stock is undervalued.

Burgundy Asset Management Ltd. increased its position in Globus Medical, Inc. (NYSE:GMED - Free Report) by 7.0% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,801,747 shares of the medical device company's stock after acquiring an additional 183,639 shares during the quarter. Globus Medical comprises about 2.1% of Burgundy Asset Management Ltd.'s holdings, making the stock its 8th biggest holding. Burgundy Asset Management Ltd. owned 2.04% of Globus Medical worth $205,088,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of GMED. Mariner LLC boosted its position in shares of Globus Medical by 10.8% in the fourth quarter. Mariner LLC now owns 13,784 shares of the medical device company's stock valued at $1,140,000 after acquiring an additional 1,342 shares during the period. Guggenheim Capital LLC bought a new stake in Globus Medical during the fourth quarter valued at approximately $907,000. NewEdge Advisors LLC lifted its position in Globus Medical by 24.6% during the fourth quarter. NewEdge Advisors LLC now owns 5,909 shares of the medical device company's stock valued at $489,000 after purchasing an additional 1,166 shares during the last quarter. Canada Pension Plan Investment Board bought a new stake in Globus Medical during the fourth quarter valued at approximately $943,000. Finally, First Trust Advisors LP lifted its position in Globus Medical by 24.6% during the fourth quarter. First Trust Advisors LP now owns 97,193 shares of the medical device company's stock valued at $8,039,000 after purchasing an additional 19,161 shares during the last quarter. 95.16% of the stock is currently owned by institutional investors.

Globus Medical Trading Down 0.4%

GMED stock traded down $0.2350 during midday trading on Thursday, hitting $60.4950. The company had a trading volume of 606,292 shares, compared to its average volume of 1,449,515. Globus Medical, Inc. has a 52 week low of $51.79 and a 52 week high of $94.93. The stock's 50 day moving average price is $57.22 and its 200 day moving average price is $66.84. The stock has a market cap of $8.17 billion, a price-to-earnings ratio of 23.27, a PEG ratio of 1.71 and a beta of 1.20.

Globus Medical (NYSE:GMED - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The medical device company reported $0.86 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.10. Globus Medical had a return on equity of 10.65% and a net margin of 13.58%.The firm had revenue of $745.34 million during the quarter, compared to the consensus estimate of $738.91 million. During the same quarter in the previous year, the company posted $0.75 earnings per share. The business's revenue was up 18.4% on a year-over-year basis. Analysts predict that Globus Medical, Inc. will post 3.44 earnings per share for the current year.

Globus Medical announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 15th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the medical device company to reacquire up to 6.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have issued reports on GMED. Morgan Stanley dropped their target price on shares of Globus Medical from $75.00 to $68.00 and set an "overweight" rating for the company in a research report on Tuesday, July 15th. BTIG Research reiterated a "neutral" rating on shares of Globus Medical in a research report on Tuesday, May 27th. Piper Sandler dropped their target price on shares of Globus Medical from $100.00 to $80.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. Needham & Company LLC reiterated a "hold" rating on shares of Globus Medical in a research report on Monday, July 21st. Finally, JMP Securities reiterated a "market perform" rating on shares of Globus Medical in a research report on Tuesday, May 27th. Eight research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $87.64.

Globus Medical Company Profile

Globus Medical, Inc, a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives.