Globus Medical (NYSE:GMED) Stock Price Down 5.4% on Analyst Downgrade

Key Points

• Globus Medical shares fell 5.4% after Royal Bank of Canada cut its price target from $120 to $115, though it kept an outperform rating. The stock traded as low as $75.18 versus a prior close of $79.75.
• Several other analysts have also turned more cautious, including recent target-price cuts and rating downgrades from firms such as Stifel Nicolaus, Zacks Research, and Piper Sandler. The current consensus rating remains Moderate Buy with an average price target of $105.
• The company recently posted strong quarterly results, with EPS of $1.12 beating estimates and revenue rising 27% year over year to $759.85 million. Globus Medical also reaffirmed FY 2026 guidance of $4.70-$4.80 EPS.

Shares of Globus Medical, Inc. (NYSE:GMED - Get Free Report) were down 5.4% during mid-day trading on Tuesday after Royal Bank Of Canada lowered their price target on the stock from $120.00 to $115.00. Royal Bank Of Canada currently has an outperform rating on the stock. Globus Medical traded as low as $75.18 and last traded at $75.4590. 103,403 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 1,473,817 shares. The stock had previously closed at $79.75.

GMED has been the topic of a number of other research reports. Wells Fargo & Company lowered their target price on Globus Medical from $104.00 to $103.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Stifel Nicolaus cut their price target on Globus Medical from $95.00 to $80.00 and set a "hold" rating for the company in a research note on Wednesday, July 8th. Zacks Research lowered shares of Globus Medical from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Wall Street Zen cut shares of Globus Medical from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, Piper Sandler dropped their price objective on shares of Globus Medical from $115.00 to $100.00 and set an "overweight" rating on the stock in a report on Monday, June 15th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $105.00.

Insiders Place Their Bets

In related news, Director David D. Davidar sold 25,000 shares of the company's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $80.76, for a total value of $2,019,000.00. Following the completion of the transaction, the director owned 510,175 shares of the company's stock, valued at approximately $41,201,733. This represents a 4.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 18.38% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Janus Henderson Group PLC grew its holdings in Globus Medical by 4.5% during the 1st quarter. Janus Henderson Group PLC now owns 7,623,095 shares of the medical device company's stock valued at $656,831,000 after buying an additional 328,217 shares in the last quarter. Invesco Ltd. grew its holdings in Globus Medical by 1,235.2% during the 4th quarter. Invesco Ltd. now owns 3,886,405 shares of the medical device company's stock valued at $339,322,000 after purchasing an additional 3,595,339 shares during the last quarter. Bank of Montreal Can boosted its position in shares of Globus Medical by 15,317.1% during the fourth quarter. Bank of Montreal Can now owns 3,373,260 shares of the medical device company's stock valued at $294,519,000 after buying an additional 3,351,380 shares during the period. Sculptor Capital LP boosted its position in shares of Globus Medical by 1.9% during the first quarter. Sculptor Capital LP now owns 3,058,000 shares of the medical device company's stock valued at $263,477,000 after buying an additional 58,000 shares during the period. Finally, Madison Avenue Partners LP grew its position in Globus Medical by 3.0% in the 4th quarter. Madison Avenue Partners LP now owns 2,624,751 shares of the medical device company's stock valued at $229,167,000 after acquiring an additional 76,588 shares during the last quarter. Hedge funds and other institutional investors own 95.16% of the company's stock.

Globus Medical Price Performance

The stock has a market capitalization of $10.17 billion, a P/E ratio of 17.49, a PEG ratio of 1.61 and a beta of 0.95. The stock's fifty day moving average price is $80.45 and its 200 day moving average price is $86.75.

Globus Medical (NYSE:GMED - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The medical device company reported $1.12 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.20. The firm had revenue of $759.85 million during the quarter, compared to the consensus estimate of $740.35 million. Globus Medical had a net margin of 18.92% and a return on equity of 13.46%. The company's revenue was up 27.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.68 earnings per share. Globus Medical has set its FY 2026 guidance at 4.700-4.800 EPS. On average, sell-side analysts expect that Globus Medical, Inc. will post 4.74 earnings per share for the current year.

About Globus Medical

Globus Medical, Inc NYSE: GMED is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

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