Globus Medical (NYSE:GMED) Upgraded by Wall Street Zen to Buy Rating

Key Points

• Globus Medical has received an upgrade from Wall Street Zen, changing its rating from "hold" to "buy" as of Saturday.
• The company reported a quarterly earnings per share (EPS) of $0.86, surpassing analysts' expectations and demonstrating a year-over-year revenue increase of 18.4%.
• Institutional investors continue to show confidence, with 95.16% of the shares now owned by large investors, reflecting significant recent investments in the company.

Globus Medical (NYSE:GMED - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

A number of other research analysts also recently issued reports on GMED. Canaccord Genuity Group cut their price target on Globus Medical from $97.00 to $90.00 and set a "buy" rating on the stock in a report on Tuesday, July 22nd. JMP Securities restated a "market perform" rating on shares of Globus Medical in a report on Tuesday, May 27th. Piper Sandler lowered their price target 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. Truist Financial lowered their price target on shares of Globus Medical from $80.00 to $68.00 and set a "hold" rating on the stock in a report on Monday, May 12th. Finally, Morgan Stanley lowered their price target on shares of Globus Medical from $75.00 to $68.00 and set an "overweight" rating on the stock in a report on Tuesday, July 15th. Five research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to MarketBeat.com, Globus Medical presently has an average rating of "Moderate Buy" and an average price target of $87.64.

Globus Medical Stock Up 0.5%

GMED stock traded up $0.34 during trading on Friday, hitting $62.21. The company had a trading volume of 313,847 shares, compared to its average volume of 1,450,904. Globus Medical has a 52-week low of $51.79 and a 52-week high of $94.93. The company has a 50 day simple moving average of $57.13 and a 200-day simple moving average of $67.98. The firm has a market capitalization of $8.42 billion, a P/E ratio of 23.89, a PEG ratio of 1.65 and a beta of 1.20.

Globus Medical (NYSE:GMED - Get Free Report) last issued its 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 company had revenue of $745.34 million for the quarter, compared to analysts' expectations of $738.91 million. During the same period in the prior year, the business earned $0.75 EPS. The firm's quarterly revenue was up 18.4% on a year-over-year basis. Sell-side analysts forecast that Globus Medical will post 3.44 earnings per share for the current year.

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

Institutional Trading of Globus Medical

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of Globus Medical by 0.4% in the 1st quarter. Vanguard Group Inc. now owns 10,909,082 shares of the medical device company's stock valued at $798,545,000 after purchasing an additional 45,248 shares during the period. Burgundy Asset Management Ltd. lifted its stake in shares of Globus Medical by 7.0% in the 1st quarter. Burgundy Asset Management Ltd. now owns 2,801,747 shares of the medical device company's stock valued at $205,088,000 after purchasing an additional 183,639 shares during the period. William Blair Investment Management LLC lifted its stake in shares of Globus Medical by 5.8% in the 2nd quarter. William Blair Investment Management LLC now owns 2,405,031 shares of the medical device company's stock valued at $141,945,000 after purchasing an additional 131,244 shares during the period. Sculptor Capital LP lifted its stake in shares of Globus Medical by 0.7% in the 1st quarter. Sculptor Capital LP now owns 2,092,838 shares of the medical device company's stock valued at $153,196,000 after purchasing an additional 15,000 shares during the period. Finally, Geneva Capital Management LLC increased its holdings in Globus Medical by 13.6% in the 2nd quarter. Geneva Capital Management LLC now owns 2,082,788 shares of the medical device company's stock worth $122,926,000 after acquiring an additional 249,141 shares in the last quarter. 95.16% of the stock is currently owned by institutional investors and hedge funds.

Globus Medical Company Profile

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.