Neo Ivy Capital Management Purchases Shares of 6,160 Globus Medical, Inc. (NYSE:GMED)

Key Points

• Neo Ivy Capital Management has acquired 6,160 shares of Globus Medical, Inc. for approximately $451,000, highlighting growing investment interest in the company.
• Globus Medical recently announced a $500 million share buyback plan, indicating management's belief that the stock may be undervalued.
• Analysts have mixed ratings on Globus Medical, with a consensus rating of "Moderate Buy" and a target price of $90.09, despite the company's recent earnings miss.

Neo Ivy Capital Management purchased a new stake in Globus Medical, Inc. (NYSE:GMED - Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 6,160 shares of the medical device company's stock, valued at approximately $451,000.

A number of other institutional investors have also modified their holdings of the business. American Century Companies Inc. boosted its position in Globus Medical by 255.9% during the 4th quarter. American Century Companies Inc. now owns 103,833 shares of the medical device company's stock worth $8,588,000 after acquiring an additional 74,659 shares during the period. Envestnet Asset Management Inc. lifted its holdings in shares of Globus Medical by 49.5% during the first quarter. Envestnet Asset Management Inc. now owns 413,366 shares of the medical device company's stock valued at $30,258,000 after purchasing an additional 136,955 shares during the last quarter. Illinois Municipal Retirement Fund acquired a new position in shares of Globus Medical in the first quarter worth about $587,000. New York State Teachers Retirement System boosted its stake in Globus Medical by 1.2% in the 1st quarter. New York State Teachers Retirement System now owns 88,143 shares of the medical device company's stock worth $6,452,000 after purchasing an additional 1,027 shares during the period. Finally, Allspring Global Investments Holdings LLC purchased a new position in shares of Globus Medical during the first quarter valued at $753,000. Institutional investors own 95.16% of the company's stock.

Globus Medical Stock Performance

Shares of NYSE GMED traded up $0.38 during midday trading on Wednesday, reaching $54.42. The company's stock had a trading volume of 161,081 shares, compared to its average volume of 1,429,398. The company has a market cap of $7.37 billion, a P/E ratio of 40.61, a P/E/G ratio of 1.59 and a beta of 1.19. Globus Medical, Inc. has a fifty-two week low of $51.87 and a fifty-two week high of $94.93. The business's 50 day moving average price is $57.90 and its two-hundred day moving average price is $70.45.

Globus Medical (NYSE:GMED - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The medical device company reported $0.68 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.74 by ($0.06). Globus Medical had a net margin of 7.39% and a return on equity of 10.52%. The firm had revenue of $598.12 million during the quarter, compared to the consensus estimate of $629.74 million. During the same period last year, the business earned $0.72 earnings per share. The business's revenue was down 1.4% compared to the same quarter last year. Sell-side analysts forecast that Globus Medical, Inc. will post 3.44 earnings per share for the current fiscal year.

Globus Medical announced that its board has approved a stock repurchase program on Thursday, May 15th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the medical device company to purchase up to 6.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Morgan Stanley dropped their price objective on shares of Globus Medical from $75.00 to $68.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 15th. Piper Sandler reduced their target price on Globus Medical from $100.00 to $80.00 and set an "overweight" rating for the company in a report on Friday, May 9th. Wall Street Zen raised Globus Medical from a "hold" rating to a "buy" rating in a research report on Monday, May 12th. Truist Financial lowered their price objective on shares of Globus Medical from $80.00 to $68.00 and set a "hold" rating on the stock in a research note on Monday, May 12th. Finally, JMP Securities reissued a "market perform" rating on shares of Globus Medical in a research report on Tuesday, May 27th. Five research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company's stock. According to MarketBeat.com, Globus Medical currently has an average rating of "Moderate Buy" and a consensus target price of $90.09.

About Globus Medical

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.