Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) Sets New 12-Month Low Following Weak Earnings

Key Points

• Shares hit a new 52-week low after Fresenius reported Q earnings with EPS $0.53 versus analysts' $0.59 and revenue $5.34B versus $5.41B, sending the stock down to about $20.02 (roughly an 11% drop).
• The company increased its annual dividend to $0.8716 per share, payable June 8 to holders of record May 22, with a dividend payout ratio around 29.8%.
• Analyst sentiment has weakened, with multiple downgrades and MarketBeat showing an average rating of "Reduce" and an average price target of $28.00.

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS - Get Free Report) shares hit a new 52-week low on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $20.02 and last traded at $20.1560, with a volume of 2653090 shares changing hands. The stock had previously closed at $22.65.

The company reported $0.53 earnings per share for the quarter, missing analysts' consensus estimates of $0.59 by ($0.06). The firm had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.41 billion. Fresenius Medical Care AG & Co. KGaA had a net margin of 5.03% and a return on equity of 8.73%.

Fresenius Medical Care AG & Co. KGaA Increases Dividend

The company also recently declared an annual dividend, which will be paid on Monday, June 8th. Investors of record on Friday, May 22nd will be issued a dividend of $0.8716 per share. This represents a yield of 385.0%. The ex-dividend date of this dividend is Friday, May 22nd. This is a positive change from Fresenius Medical Care AG & Co. KGaA's previous annual dividend of $0.79. Fresenius Medical Care AG & Co. KGaA's dividend payout ratio (DPR) is 29.84%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Erste Group Bank lowered shares of Fresenius Medical Care AG & Co. KGaA from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 5th. Citigroup reaffirmed a "neutral" rating on shares of Fresenius Medical Care AG & Co. KGaA in a report on Friday, April 24th. Wall Street Zen lowered shares of Fresenius Medical Care AG & Co. KGaA from a "strong-buy" rating to a "buy" rating in a report on Sunday, April 26th. The Goldman Sachs Group lowered shares of Fresenius Medical Care AG & Co. KGaA from a "buy" rating to a "neutral" rating in a report on Tuesday, January 20th. Finally, Morgan Stanley reiterated an "underweight" rating on shares of Fresenius Medical Care AG & Co. KGaA in a research note on Tuesday, January 27th. Six equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $28.00.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Advisors Preferred LLC boosted its stake in Fresenius Medical Care AG & Co. KGaA by 6.1% during the 1st quarter. Advisors Preferred LLC now owns 10,226 shares of the company's stock valued at $231,000 after acquiring an additional 589 shares during the last quarter. Sequoia Financial Advisors LLC bought a new position in Fresenius Medical Care AG & Co. KGaA during the 1st quarter valued at $457,000. DMC Group LLC boosted its stake in Fresenius Medical Care AG & Co. KGaA by 15.3% during the 1st quarter. DMC Group LLC now owns 22,460 shares of the company's stock valued at $507,000 after acquiring an additional 2,986 shares during the last quarter. Kathmere Capital Management LLC bought a new position in Fresenius Medical Care AG & Co. KGaA during the 1st quarter valued at $219,000. Finally, QRG Capital Management Inc. boosted its stake in Fresenius Medical Care AG & Co. KGaA by 13.8% during the 1st quarter. QRG Capital Management Inc. now owns 77,128 shares of the company's stock valued at $1,740,000 after acquiring an additional 9,357 shares during the last quarter. 8.37% of the stock is currently owned by institutional investors.

Fresenius Medical Care AG & Co. KGaA Stock Down 11.0%

The company has a current ratio of 1.26, a quick ratio of 0.92 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $11.26 billion, a P/E ratio of 10.55, a P/E/G ratio of 2.76 and a beta of 0.81. The stock's 50 day simple moving average is $22.77 and its 200 day simple moving average is $23.51.

About Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG & Co KGaA is the world's largest integrated provider of products and services for individuals with renal diseases. The company's primary business activities encompass the operation of dialysis clinics and the manufacture and distribution of dialysis equipment, dialysis machines, dialyzers, consumables and related therapies. Through its global network of clinics, Fresenius Medical Care delivers comprehensive kidney care, including hemodialysis and peritoneal dialysis treatments, patient education and support services.

In its products segment, the company designs and produces dialysis machines, water treatment systems and disposables such as high‐flux dialyzers and bloodlines.

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