Globus Medical, Inc. (NYSE:GMED) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Globus Medical, Inc. has received a consensus recommendation of "Moderate Buy" from thirteen research firms, with an average 12-month target price of $87.64.
• In its latest quarterly earnings report, Globus Medical exceeded analyst expectations by posting an earnings per share of $0.86 and demonstrated an 18.4% year-over-year revenue growth.
• The company announced a $500 million share buyback program, indicating a confidence among leadership that the stock is currently undervalued.

Globus Medical, Inc. (NYSE:GMED - Get Free Report) has earned an average rating of "Moderate Buy" from the thirteen ratings firms that are currently covering the company, MarketBeat reports. Five analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 12-month price target among brokers that have covered the stock in the last year is $87.6364.

A number of analysts have weighed in on GMED shares. Wells Fargo & Company cut their target price on shares of Globus Medical from $76.00 to $66.00 and set an "overweight" rating on the stock in a research report on Friday, August 8th. JMP Securities reiterated a "market perform" rating on shares of Globus Medical in a report on Tuesday, May 27th. Piper Sandler dropped their price objective on shares of Globus Medical from $100.00 to $80.00 and set an "overweight" rating on the stock in a report on Friday, May 9th. BTIG Research restated a "neutral" rating on shares of Globus Medical in a report on Tuesday, May 27th. Finally, Morgan Stanley decreased their price objective on shares of Globus Medical from $75.00 to $68.00 and set an "overweight" rating for the company in a research note on Tuesday, July 15th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Farther Finance Advisors LLC increased its stake in shares of Globus Medical by 145.5% during the 1st quarter. Farther Finance Advisors LLC now owns 405 shares of the medical device company's stock worth $30,000 after purchasing an additional 240 shares during the last quarter. Larson Financial Group LLC increased its stake in shares of Globus Medical by 1,007.7% during the 1st quarter. Larson Financial Group LLC now owns 432 shares of the medical device company's stock worth $32,000 after purchasing an additional 393 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Globus Medical by 74.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 462 shares of the medical device company's stock worth $27,000 after purchasing an additional 197 shares during the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of Globus Medical during the 2nd quarter worth approximately $28,000. Finally, Parallel Advisors LLC increased its stake in shares of Globus Medical by 62.1% during the 1st quarter. Parallel Advisors LLC now owns 504 shares of the medical device company's stock worth $37,000 after purchasing an additional 193 shares during the last quarter. 95.16% of the stock is owned by institutional investors.

Globus Medical Stock Performance

Shares of NYSE GMED traded up $0.23 during trading hours on Monday, hitting $61.36. 21,817 shares of the stock were exchanged, compared to its average volume of 1,423,730. The company has a market cap of $8.29 billion, a PE ratio of 23.60, a price-to-earnings-growth ratio of 1.72 and a beta of 1.20. The company's fifty day simple moving average is $57.58 and its two-hundred day simple moving average is $65.66. Globus Medical has a 1-year low of $51.79 and a 1-year high of $94.93.

Globus Medical (NYSE:GMED - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The medical device company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.10. Globus Medical had a net margin of 13.58% and a return on equity of 10.65%. The business had revenue of $745.34 million for the quarter, compared to analyst estimates of $738.91 million. During the same quarter last year, the business posted $0.75 EPS. The firm's revenue for the quarter was up 18.4% on a year-over-year basis. As a group, sell-side analysts expect that Globus Medical will post 3.44 EPS for the current fiscal year.

Globus Medical announced that its board has approved a stock buyback plan on Thursday, May 15th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the medical device company to reacquire up to 6.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

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.