Nantahala Capital Management LLC Buys New Shares in OrthoPediatrics Corp. $KIDS

Key Points

• Nantahala Capital Management bought 242,342 OrthoPediatrics shares worth approximately $4.64 million, giving it a 0.93% stake. Institutional investors and hedge funds collectively own 69.05% of KIDS.
• Analysts maintain a generally positive outlook, with nine Buy ratings, one Hold and one Sell; the consensus rating is Moderate Buy with a $26.44 price target. BTIG and Needham recently raised their targets to $29 and $35, respectively.
• OrthoPediatrics exceeded quarterly expectations, reporting revenue of $70.51 million and an adjusted loss of $0.26 per share versus estimates of $68.21 million and a $0.30 loss. However, insiders sold 114,900 shares worth $2.83 million over the past 90 days, while the stock recently traded at $23.65.

Nantahala Capital Management LLC purchased a new stake in shares of OrthoPediatrics Corp. (NASDAQ:KIDS - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 242,342 shares of the company's stock, valued at approximately $4,636,002. Nantahala Capital Management LLC owned about 0.93% of OrthoPediatrics as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. Russell Investments Group Ltd. increased its holdings in OrthoPediatrics by 433.1% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,402 shares of the company's stock worth $26,000 after buying an additional 1,139 shares during the period. Legal & General Group Plc acquired a new position in shares of OrthoPediatrics in the 2nd quarter valued at about $34,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of OrthoPediatrics by 5,226.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,610 shares of the company's stock worth $46,000 after buying an additional 2,561 shares during the last quarter. Caption Management LLC purchased a new stake in shares of OrthoPediatrics in the third quarter worth about $54,000. Finally, BNP Paribas Financial Markets grew its holdings in OrthoPediatrics by 60.2% during the third quarter. BNP Paribas Financial Markets now owns 3,288 shares of the company's stock worth $61,000 after acquiring an additional 1,235 shares during the period. 69.05% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

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

Insider Activity

In other OrthoPediatrics news, Director David R. Pelizzon sold 18,000 shares of OrthoPediatrics stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $24.28, for a total transaction of $437,040.00. Following the completion of the sale, the director directly owned 6,863,464 shares in the company, valued at $166,644,905.92. This trade represents a 0.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Jennifer N. Pritzker sold 18,000 shares of the firm's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $24.28, for a total value of $437,040.00. Following the transaction, the insider owned 6,863,464 shares of the company's stock, valued at $166,644,905.92. This trade represents a 0.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 114,900 shares of company stock valued at $2,829,906 in the last 90 days. Company insiders own 32.50% of the company's stock.

OrthoPediatrics Trading Up 1.4%

Shares of KIDS opened at $23.65 on Friday. OrthoPediatrics Corp. has a 52-week low of $14.42 and a 52-week high of $26.74. The company has a quick ratio of 2.17, a current ratio of 4.78 and a debt-to-equity ratio of 0.28. The firm's fifty day moving average is $21.41 and its two-hundred day moving average is $18.66. The stock has a market cap of $617.50 million, a PE ratio of -14.08 and a beta of 0.98.

OrthoPediatrics (NASDAQ:KIDS - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.26) earnings per share 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 company had revenue of $70.51 million for the quarter, compared to analyst estimates of $68.21 million. Research analysts forecast that OrthoPediatrics Corp. will post -1.14 earnings per share for the current fiscal year.

OrthoPediatrics Company 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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