Merit Medical Systems (NASDAQ:MMSI) Hits New 1-Year Low - Should You Sell?

Key Points

• Merit Medical Systems' stock reached a new 52-week low, trading as low as $79.95, before settling at $80.82, indicating volatility in its recent performance.
• Despite the drop in stock price, analysts remain optimistic, with a consensus average rating of "Buy" and a target price of $107.50 after several firms adjusted their price targets.
• In the latest quarterly earnings report, the company reported $1.01 earnings per share (EPS), exceeding estimates, along with a revenue increase of 13.2% year-over-year, highlighting its operational strength.

Merit Medical Systems, Inc. (NASDAQ:MMSI - Get Free Report)'s share price reached a new 52-week low on Thursday . The stock traded as low as $79.95 and last traded at $80.82, with a volume of 211067 shares changing hands. The stock had previously closed at $83.08.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on MMSI. Piper Sandler lowered their price target on shares of Merit Medical Systems from $110.00 to $105.00 and set an "overweight" rating on the stock in a report on Thursday, July 31st. Barrington Research reissued an "outperform" rating and issued a $103.00 price target on shares of Merit Medical Systems in a report on Tuesday. Needham & Company LLC reissued a "buy" rating and issued a $108.00 price target on shares of Merit Medical Systems in a report on Friday, July 18th. Wells Fargo & Company lowered their price target on shares of Merit Medical Systems from $108.00 to $100.00 and set an "overweight" rating on the stock in a report on Thursday, July 31st. Finally, Raymond James Financial lowered their price target on shares of Merit Medical Systems from $108.00 to $102.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Eight equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $107.50.

Merit Medical Systems Stock Performance

The stock's 50-day simple moving average is $86.34 and its 200-day simple moving average is $92.37. The stock has a market cap of $4.77 billion, a price-to-earnings ratio of 40.91, a price-to-earnings-growth ratio of 2.82 and a beta of 0.64. The company has a current ratio of 4.09, a quick ratio of 2.66 and a debt-to-equity ratio of 0.49.

Merit Medical Systems (NASDAQ:MMSI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The medical instruments supplier reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.16. The business had revenue of $382.46 million for the quarter, compared to analyst estimates of $372.47 million. Merit Medical Systems had a net margin of 8.31% and a return on equity of 15.07%. The firm's revenue for the quarter was up 13.2% on a year-over-year basis. During the same quarter last year, the business posted $0.92 EPS. Analysts forecast that Merit Medical Systems, Inc. will post 3.37 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Lynne N. Ward sold 3,000 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $88.56, for a total transaction of $265,680.00. Following the sale, the director owned 12,809 shares in the company, valued at approximately $1,134,365.04. This trade represents a 18.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of Merit Medical Systems

Large investors have recently made changes to their positions in the company. Maseco LLP acquired a new stake in shares of Merit Medical Systems during the 2nd quarter worth approximately $28,000. Opal Wealth Advisors LLC bought a new position in Merit Medical Systems in the 1st quarter valued at approximately $31,000. IFP Advisors Inc lifted its stake in Merit Medical Systems by 1,435.0% in the 1st quarter. IFP Advisors Inc now owns 307 shares of the medical instruments supplier's stock valued at $32,000 after purchasing an additional 287 shares during the last quarter. MassMutual Private Wealth & Trust FSB lifted its stake in Merit Medical Systems by 55.6% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 375 shares of the medical instruments supplier's stock valued at $35,000 after purchasing an additional 134 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in Merit Medical Systems by 119.8% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 367 shares of the medical instruments supplier's stock valued at $39,000 after purchasing an additional 200 shares during the last quarter. Institutional investors and hedge funds own 99.66% of the company's stock.

About Merit Medical Systems

Merit Medical Systems, Inc designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures in the United States and internationally. It operates in two segments, Cardiovascular and Endoscopy. The company provides micropuncture kits, angiographic needles, sheaths, guide wires, and safety products; peripheral intervention, including angiography, drainage, delivery systems, and embolotherapy products; spine products, such as vertebral augmentation, radiofrequency ablation, and bone biopsy systems; oncology products; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions.

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