Medline (NASDAQ:MDLN) Trading Down 10.5% - Here's Why

Key Points

• Medline shares fell 10.5% on Wednesday to about $40.57 (intraday low $39.85) with roughly 2.98 million shares traded, a 43% drop from average daily volume after closing at $45.32 the prior day.
• Medline beat quarterly EPS expectations ($0.33 vs. $0.29) and reported revenue of $7.35 billion, up 10.7% year-over-year, while analysts project $1.46 in EPS for the current year.
• The stock has a MarketBeat consensus rating of "Moderate Buy" with a consensus price target of $50.62, and several brokers maintain buy/outperform ratings with targets up to $57.

Medline (NASDAQ:MDLN - Get Free Report)'s share price was down 10.5% during trading on Wednesday . The stock traded as low as $39.85 and last traded at $40.5660. Approximately 2,978,371 shares were traded during trading, a decline of 43% from the average daily volume of 5,252,056 shares. The stock had previously closed at $45.32.

Analyst Ratings Changes

Several equities analysts recently commented on MDLN shares. BTIG Research reissued a "buy" rating and set a $55.00 price target on shares of Medline in a research report on Monday, March 9th. Royal Bank Of Canada boosted their price target on Medline from $47.00 to $53.00 and gave the stock an "outperform" rating in a research report on Thursday, February 26th. BNP Paribas Exane started coverage on Medline in a research report on Monday, January 12th. They set a "neutral" rating and a $38.00 price target on the stock. UBS Group boosted their price target on Medline from $48.00 to $57.00 and gave the stock a "buy" rating in a research report on Thursday, February 26th. Finally, Stifel Nicolaus set a $55.00 price target on Medline in a research report on Wednesday, February 25th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $50.62.

Medline Price Performance

The company's 50-day moving average is $44.72.

Medline (NASDAQ:MDLN - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.04. The firm had revenue of $7.35 billion for the quarter. The company's revenue for the quarter was up 10.7% compared to the same quarter last year. On average, research analysts predict that Medline will post 1.46 EPS for the current year.

Institutional Investors Weigh In On Medline

Institutional investors and hedge funds have recently made changes to their positions in the company. Sound Income Strategies LLC bought a new position in Medline during the 4th quarter worth $25,000. Entrust Financial LLC acquired a new stake in shares of Medline in the fourth quarter valued at $26,000. NBC Securities Inc. acquired a new position in shares of Medline in the 4th quarter valued at $28,000. Whipplewood Advisors LLC purchased a new stake in shares of Medline in the 1st quarter valued at approximately $30,000. Finally, Global Retirement Partners LLC purchased a new stake in shares of Medline in the 4th quarter valued at approximately $31,000.

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.

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