Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) Shares Gap Down - Here's Why

Key Points

• Shares gapped down: FMS opened at $21.08 after closing at $22.65 and last traded near $20.43 on volume of 541,188, reflecting a roughly 10.4% drop.
• Analyst sentiment turned negative: Multiple downgrades left a MarketBeat consensus rating of "Reduce" with a $28.00 consensus target after several firms cut their ratings recently.
• Dividend increase announced: Fresenius Medical Care raised its annual dividend to $0.8716 (from $0.79), payable June 8 with an ex-dividend date of May 22.

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $22.65, but opened at $21.08. Fresenius Medical Care AG & Co. KGaA shares last traded at $20.4280, with a volume of 541,188 shares traded.

Wall Street Analyst Weigh In

FMS has been the subject of several research reports. The Goldman Sachs Group downgraded Fresenius Medical Care AG & Co. KGaA from a "buy" rating to a "neutral" rating in a research note on Tuesday, January 20th. Jefferies Financial Group downgraded Fresenius Medical Care AG & Co. KGaA from a "moderate sell" rating to a "strong sell" rating in a research note on Tuesday, February 24th. Morgan Stanley reaffirmed an "underweight" rating on shares of Fresenius Medical Care AG & Co. KGaA in a research note on Tuesday, January 27th. Erste Group Bank downgraded Fresenius Medical Care AG & Co. KGaA from a "strong-buy" rating to a "hold" rating in a research note on Thursday, February 5th. Finally, Wall Street Zen downgraded shares of Fresenius Medical Care AG & Co. KGaA from a "strong-buy" rating to a "buy" rating in a research note on Sunday, April 26th. Six research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $28.00.

Fresenius Medical Care AG & Co. KGaA Stock Down 10.4%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.92 and a current ratio of 1.26. The company has a market cap of $11.34 billion, a PE ratio of 10.63, a PEG ratio of 2.74 and a beta of 0.81. The firm has a fifty day simple moving average of $22.86 and a 200 day simple moving average of $23.56.

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The company reported $1.69 EPS for the quarter. The company had revenue of $5.95 billion during the quarter. Fresenius Medical Care AG & Co. KGaA had a return on equity of 8.73% and a net margin of 5.03%. Equities research analysts predict that Fresenius Medical Care AG & Co. KGaA will post 2.45 EPS for the current year.

Fresenius Medical Care AG & Co. KGaA Increases Dividend

The company also recently announced an annual dividend, which will be paid on Monday, June 8th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.8716 per share. This represents a dividend yield of 385.0%. The ex-dividend date is Friday, May 22nd. This is an increase 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 presently 29.84%.

Institutional Trading of Fresenius Medical Care AG & Co. KGaA

Institutional investors and hedge funds have recently bought and sold shares of the business. Factory Mutual Insurance Co. acquired a new stake in Fresenius Medical Care AG & Co. KGaA during the 3rd quarter worth approximately $1,769,000. Pzena Investment Management LLC increased its position in Fresenius Medical Care AG & Co. KGaA by 1.0% during the 3rd quarter. Pzena Investment Management LLC now owns 14,816,852 shares of the company's stock worth $390,128,000 after purchasing an additional 153,870 shares in the last quarter. Teachers Retirement System of The State of Kentucky increased its position in Fresenius Medical Care AG & Co. KGaA by 8.3% during the 3rd quarter. Teachers Retirement System of The State of Kentucky now owns 816,200 shares of the company's stock worth $21,491,000 after purchasing an additional 62,700 shares in the last quarter. Todd Asset Management LLC increased its position in Fresenius Medical Care AG & Co. KGaA by 5.2% during the 3rd quarter. Todd Asset Management LLC now owns 1,303,424 shares of the company's stock worth $34,319,000 after purchasing an additional 64,311 shares in the last quarter. Finally, Moran Wealth Management LLC increased its position in Fresenius Medical Care AG & Co. KGaA by 67.4% during the 4th quarter. Moran Wealth Management LLC now owns 264,462 shares of the company's stock worth $6,299,000 after purchasing an additional 106,438 shares in the last quarter. Institutional investors and hedge funds own 8.37% of the company's stock.

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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