Zimmer Biomet Holdings, Inc. $ZBH Position Trimmed by Morningstar Investment Management LLC

Key Points

• Morningstar Investment Management cut its Zimmer Biomet stake by 57.6% in Q1, selling 33,328 shares and leaving it with 24,537 shares worth about $2.2 million.
• Zimmer Biomet beat earnings expectations in its latest quarter, reporting $2.09 EPS versus $1.86 expected, on revenue of $2.09 billion, up 9.3% year over year.
• The company announced a quarterly dividend of $0.24 per share and saw analysts mostly maintain cautious views, with a consensus rating of Hold and a consensus price target of $100.70.

Morningstar Investment Management LLC trimmed its holdings in shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH - Free Report) by 57.6% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 24,537 shares of the medical equipment provider's stock after selling 33,328 shares during the period. Morningstar Investment Management LLC's holdings in Zimmer Biomet were worth $2,219,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Compound Planning Inc. bought a new stake in shares of Zimmer Biomet during the 1st quarter valued at about $250,000. Arrowstreet Capital Limited Partnership lifted its holdings in Zimmer Biomet by 62.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,104,218 shares of the medical equipment provider's stock worth $99,843,000 after acquiring an additional 425,349 shares during the last quarter. Bank of Nova Scotia boosted its stake in Zimmer Biomet by 38.3% in the first quarter. Bank of Nova Scotia now owns 42,877 shares of the medical equipment provider's stock valued at $3,877,000 after acquiring an additional 11,876 shares during the period. Sei Investments Co. grew its holdings in shares of Zimmer Biomet by 33.2% during the first quarter. Sei Investments Co. now owns 411,962 shares of the medical equipment provider's stock valued at $37,249,000 after purchasing an additional 102,694 shares during the last quarter. Finally, Lido Advisors LLC grew its holdings in shares of Zimmer Biomet by 6.1% during the first quarter. Lido Advisors LLC now owns 323,507 shares of the medical equipment provider's stock valued at $29,322,000 after purchasing an additional 18,656 shares during the last quarter. 88.89% of the stock is currently owned by institutional investors.

Zimmer Biomet Stock Performance

Shares of NYSE ZBH opened at $91.35 on Friday. Zimmer Biomet Holdings, Inc. has a 1 year low of $79.12 and a 1 year high of $108.29. The firm has a market cap of $17.67 billion, a P/E ratio of 23.73, a PEG ratio of 2.69 and a beta of 0.46. The stock has a fifty day moving average price of $87.90 and a two-hundred day moving average price of $89.81. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.95 and a current ratio of 1.73.

Zimmer Biomet (NYSE:ZBH - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The medical equipment provider reported $2.09 EPS for the quarter, topping analysts' consensus estimates of $1.86 by $0.23. The company had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.07 billion. Zimmer Biomet had a return on equity of 13.24% and a net margin of 9.05%.The company's quarterly revenue was up 9.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.81 EPS. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. Research analysts forecast that Zimmer Biomet Holdings, Inc. will post 8.48 EPS for the current fiscal year.

Zimmer Biomet Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, June 25th will be issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, June 25th. Zimmer Biomet's payout ratio is presently 24.94%.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Citizens Jmp cut their price target on Zimmer Biomet from $120.00 to $105.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 29th. Truist Financial reaffirmed a "hold" rating and issued a $92.00 target price (down from $98.00) on shares of Zimmer Biomet in a research report on Wednesday, April 29th. Stifel Nicolaus cut their target price on Zimmer Biomet from $110.00 to $105.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Wells Fargo & Company reduced their price target on shares of Zimmer Biomet from $98.00 to $90.00 and set an "equal weight" rating for the company in a report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Zimmer Biomet from $100.00 to $95.00 and set a "neutral" rating on the stock in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $100.70.

Insider Buying and Selling

In related news, insider Sang Yi sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $82.64, for a total transaction of $413,200.00. Following the completion of the sale, the insider directly owned 27,251 shares in the company, valued at approximately $2,252,022.64. This trade represents a 15.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.28% of the stock is currently owned by corporate insiders.

About Zimmer Biomet

Zimmer Biomet NYSE: ZBH is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company's product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

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