Rakuten Investment Management Inc. Makes New $9.11 Million Investment in Edwards Lifesciences Corporation $EW

Key Points

• Rakuten Investment Management opened a new position in Edwards Lifesciences, buying 103,418 shares valued at approximately $9.11 million.
• Edwards beat quarterly estimates, with EPS of $0.80 versus $0.74 expected and revenue of $1.72 billion, up 10.5% year over year; the company also raised its full-year sales outlook.
• Analysts have generally turned more positive, with several raising price targets, though the company’s CEO has flagged increasing competition in its TAVR business as a potential challenge.

Rakuten Investment Management Inc. purchased a new stake in Edwards Lifesciences Corporation (NYSE:EW - Free Report) in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 103,418 shares of the medical research company's stock, valued at approximately $9,109,000.

Other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Edwards Lifesciences in the 2nd quarter valued at about $5,318,092,000. Varma Mutual Pension Insurance Co acquired a new position in Edwards Lifesciences during the 2nd quarter worth approximately $11,168,000. Conway Capital Management Inc. acquired a new position in Edwards Lifesciences during the 2nd quarter worth approximately $954,000. Commerce Bank bought a new position in Edwards Lifesciences in the second quarter worth approximately $3,121,000. Finally, Assenagon Asset Management S.A. boosted its holdings in Edwards Lifesciences by 50.0% in the third quarter. Assenagon Asset Management S.A. now owns 2,719,271 shares of the medical research company's stock worth $234,727,000 after acquiring an additional 906,345 shares in the last quarter. Institutional investors and hedge funds own 79.46% of the company's stock.

Edwards Lifesciences Trading Up 1.3%

EW opened at $100.70 on Friday. Edwards Lifesciences Corporation has a fifty-two week low of $74.66 and a fifty-two week high of $104.17. The firm has a market capitalization of $57.99 billion, a PE ratio of 56.90, a P/E/G ratio of 2.60 and a beta of 0.85. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.52 and a quick ratio of 3.77. The company's 50-day moving average is $88.68 and its 200 day moving average is $85.69.

Edwards Lifesciences (NYSE:EW - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The medical research company reported $0.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.06. The business had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.68 billion. Edwards Lifesciences had a return on equity of 16.25% and a net margin of 15.30%. The company's quarterly revenue was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.67 EPS. As a group, research analysts predict that Edwards Lifesciences Corporation will post 3.00 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on EW. Leerink Partners boosted their price objective on Edwards Lifesciences from $101.00 to $112.00 and gave the company an "outperform" rating in a report on Thursday. Citigroup upped their target price on Edwards Lifesciences from $110.00 to $117.00 and gave the stock a "buy" rating in a research report on Thursday. Wall Street Zen cut Edwards Lifesciences from a "buy" rating to a "hold" rating in a report on Saturday, October 31st. Deutsche Bank Aktiengesellschaft set a $104.00 price target on shares of Edwards Lifesciences in a research report on Tuesday, October 27th. Finally, UBS Group lifted their price target on shares of Edwards Lifesciences from $110.00 to $118.00 and gave the company a "buy" rating in a research report on Thursday. Twenty-three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, Edwards Lifesciences has an average rating of "Moderate Buy" and a consensus price target of $108.88.

Key Headlines Impacting Edwards Lifesciences

Here are the key news stories impacting Edwards Lifesciences this week:

• Positive Sentiment: Edwards beat Q3 estimates, reporting adjusted EPS of $0.80 versus $0.74 expected and revenue of $1.72 billion, up about 11% year over year. It raised its full-year sales outlook and set adjusted EPS guidance of $2.97–$3.05. TAVR sales grew 8.8%, while transcatheter mitral and tricuspid therapies (TMTT) grew 45.6%, supporting the growth outlook. Q3 earnings and outlook
• Positive Sentiment: New PROGRESS Trial data found TAVR performed better than active surveillance for at-risk patients with moderate aortic stenosis, including fewer combined death or heart-failure events and better quality-of-life measures. The findings could support broader future use, though they do not by themselves establish a change in treatment or reimbursement. PROGRESS Trial data
• Positive Sentiment: Analysts responded favorably to the results: UBS raised its target to $118 and JPMorgan to $120, while other firms also increased targets and several upgraded the shares. The revisions signal improved expectations, but are analyst opinions rather than guaranteed returns. UBS price-target increase JPMorgan price-target increase
• Negative Sentiment: Edwards’ CEO acknowledged that more competition is coming in TAVR, a potential challenge to market share and growth. CEO comments on TAVR competition

Insider Transactions at Edwards Lifesciences

In related news, VP Annette Brüls sold 2,644 shares of Edwards Lifesciences stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $89.98, for a total transaction of $237,907.12. Following the transaction, the vice president owned 17,984 shares of the company's stock, valued at $1,618,200.32. The trade was a 12.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Daniel J. Lippis sold 619 shares of the company's stock in a transaction on Thursday, October 8th. The stock was sold at an average price of $85.65, for a total value of $53,017.35. Following the sale, the vice president owned 40,034 shares of the company's stock, valued at $3,428,912.10. This trade represents a 1.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 5,045 shares of company stock valued at $451,596 over the last ninety days. 0.31% of the stock is currently owned by insiders.

Edwards Lifesciences Profile

Edwards Lifesciences Corporation NYSE: EW is a medical technology company focused on therapies for structural heart disease and critical care. The company develops and manufactures products designed to treat conditions affecting the heart's valves, including aortic, mitral and tricuspid valve disorders.

Its portfolio includes transcatheter aortic valve replacement systems, transcatheter mitral and tricuspid therapies, surgical heart valves and valve-repair technologies. Edwards also provides related delivery systems and other medical devices used by physicians in minimally invasive and open-heart procedures.

Founded in 1958 by Miles Lowell Edwards, the company is headquartered in Irvine, California, and serves healthcare providers and patients internationally.

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