Medline (NASDAQ:MDLN) Reaches New 52-Week Low - Time to Sell?

Key Points

• Medline shares fell 3.0% to a new 52-week low of $32.76, trading below both their 50-day and 200-day moving averages. The company has a $43.25 billion market capitalization and trades at a price-to-earnings ratio of 41.65.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $47.42, although several firms recently cut their targets, including Wells Fargo to $34 and JPMorgan to $46.
• Medline exceeded quarterly earnings expectations, reporting $0.50 in EPS versus the $0.32 consensus estimate and $7.68 billion in revenue. However, insiders sold 4.54 million shares worth about $161.9 million over the last quarter, while institutional investors also made new purchases.

Medline (NASDAQ:MDLN - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $32.76 and last traded at $32.89, with a volume of 3161926 shares changing hands. The stock had previously closed at $33.91.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on MDLN. Robert W. Baird set a $42.00 price target on Medline in a research note on Thursday, August 6th. JPMorgan Chase & Co. lowered their target price on shares of Medline from $53.00 to $46.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 12th. BMO Capital Markets restated an "outperform" rating and set a $47.00 price target on shares of Medline in a report on Thursday, August 6th. Wells Fargo & Company dropped their price objective on Medline from $45.00 to $34.00 and set an "equal weight" rating on the stock in a research note on Tuesday, August 11th. Finally, Citigroup raised Medline to a "strong-buy" rating in a report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Medline has an average rating of "Moderate Buy" and a consensus target price of $47.42.

Medline Stock Down 3.0%

The business's 50-day moving average is $38.23 and its 200-day moving average is $41.14. The company has a debt-to-equity ratio of 0.66, a quick ratio of 2.61 and a current ratio of 4.33. The firm has a market cap of $43.25 billion and a price-to-earnings ratio of 41.65.

Medline (NASDAQ:MDLN - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.18. The company had revenue of $7.68 billion for the quarter. On average, equities analysts predict that Medline will post 1.51 EPS for the current year.

Insiders Place Their Bets

In other news, major shareholder Private Ltd Gic sold 1,976,618 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $35.60, for a total transaction of $70,367,600.80. Following the transaction, the insider owned 25,264,760 shares of the company's stock, valued at $899,425,456. This represents a 7.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jessi L. Corcoran acquired 5,000 shares of the company's stock in a transaction on Friday, June 5th. The shares were purchased at an average cost of $34.15 per share, with a total value of $170,750.00. Following the completion of the acquisition, the insider directly owned 5,000 shares in the company, valued at approximately $170,750. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have sold 4,538,896 shares of company stock valued at $161,936,454. 0.81% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Mass General Brigham Inc raised its position in Medline by 167.6% during the 1st quarter. Mass General Brigham Inc now owns 70,357 shares of the company's stock worth $3,131,000 after purchasing an additional 44,063 shares during the last quarter. Cetera Investment Advisers grew its position in Medline by 128.4% during the first quarter. Cetera Investment Advisers now owns 52,088 shares of the company's stock worth $2,318,000 after buying an additional 29,282 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. bought a new position in Medline in the 1st quarter worth about $1,177,000. UBS Group AG purchased a new stake in shares of Medline in the 4th quarter valued at about $54,707,000. Finally, Pictet Asset Management Holding SA bought a new position in shares of Medline in the 4th quarter worth $48,996,000.

About Medline

Medline NASDAQ: MDLN is a healthcare products and services company that manufactures, sources and distributes a wide range of medical supplies and equipment for healthcare providers. Its product portfolio spans clinical consumables and personal protective equipment, surgical and procedural supplies, wound care and incontinence products, diagnostic and laboratory supplies, and select durable medical equipment. Medline supports care settings that include hospitals, health systems, long-term care facilities, ambulatory clinics and home health providers.

In addition to product manufacturing and distribution, Medline provides supply‑chain and logistics services designed to help healthcare customers manage inventory, reduce costs and streamline operations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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