Merit Medical Systems (NASDAQ:MMSI) Stock Price Down 5.7% on Analyst Downgrade

Key Points

• Shares fell ~5.7% after Needham cut its price target from $101 to $90 (while keeping a buy rating), and several other firms have trimmed targets—MarketBeat shows a consensus price target of $98.33.
• Merit reported Q1 upside with stronger margins and cash flow and raised FY‑2026 EPS guidance to $4.01–$4.15, signaling management confidence despite moderation in growth.
• Investors appear focused on valuation and growth trajectory (P/E ~30.5) and rotated out of the stock, a reaction amplified by unusually low intraday volume versus the average.

Merit Medical Systems, Inc. (NASDAQ:MMSI - Get Free Report)'s share price dropped 5.7% on Friday after Needham & Company LLC lowered their price target on the stock from $101.00 to $90.00. Needham & Company LLC currently has a buy rating on the stock. Merit Medical Systems traded as low as $62.04 and last traded at $64.3140. Approximately 94,643 shares changed hands during trading, a decline of 87% from the average daily volume of 746,757 shares. The stock had previously closed at $68.18.

Several other research firms have also recently weighed in on MMSI. Piper Sandler cut their price target on shares of Merit Medical Systems from $106.00 to $96.00 and set an "overweight" rating on the stock in a report on Friday, April 17th. Wells Fargo & Company cut shares of Merit Medical Systems from an "overweight" rating to an "equal weight" rating and cut their price target for the stock from $95.00 to $78.00 in a report on Thursday, February 26th. Citigroup restated an "outperform" rating on shares of Merit Medical Systems in a report on Monday, April 20th. BTIG Research began coverage on shares of Merit Medical Systems in a report on Friday, February 6th. They set a "buy" rating and a $107.00 price target on the stock. Finally, Canaccord Genuity Group dropped their target price on shares of Merit Medical Systems from $99.00 to $90.00 and set a "buy" rating on the stock in a research note on Tuesday, April 7th. Seven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Merit Medical Systems has an average rating of "Moderate Buy" and a consensus price target of $98.33.

Key Merit Medical Systems News

Here are the key news stories impacting Merit Medical Systems this week:

• Positive Sentiment: Q1 results beat expectations: revenue of ~$381.9M (up ~7% year‑over‑year) and non‑GAAP EPS $0.94, with margin improvement and stronger free cash flow. These operational beats underpin the company’s updated outlook. Merit Medical Reports First Quarter 2026 Results and Updates Full-Year Guidance
• Positive Sentiment: Management raised FY‑2026 EPS guidance to $4.010–$4.150 (above street consensus ~3.93), signaling confidence in cash generation and profitability for the year. Merit Medical Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Strategic portfolio moves: closed acquisition of View Point Medical for $140M ( ~$90M cash at close) to expand imaging/marker products; also sold the DualCap® assets for ~$28M (cash received). These reshape product mix but involve near‑term cash outflows/ins and integration work. Merit Medical Reports First Quarter 2026 Results and Updates Full-Year Guidance
• Neutral Sentiment: Company updated revenue presentation (Foundational vs Therapeutic) to better reflect end‑markets — useful for analysts/longer‑term modeling but unlikely to move the stock immediately. Merit Medical Reports First Quarter 2026 Results and Updates Full-Year Guidance
• Negative Sentiment: Analyst target trimmed: Needham lowered its price target from $101 to $90 while keeping a Buy rating, citing sector multiple compression and some growth deceleration — that haircut on the target likely pressured sentiment and contributed to selling. Analyst Reiterates Buy on Merit Medical Systems; Trims PT to $90
• Negative Sentiment: Market is focused on valuation and growth trajectory: despite beats, management noted growth is moderating vs prior periods — coupled with a ~31x P/E multiple, investors may be rotating out on multiple compression rather than fundamentals. Q1 2026 Earnings Call Transcript

Institutional Trading of Merit Medical Systems

Several hedge funds and other institutional investors have recently modified their holdings of MMSI. Tudor Investment Corp ET AL bought a new stake in Merit Medical Systems during the 3rd quarter worth approximately $2,913,050,000. SG Americas Securities LLC bought a new stake in Merit Medical Systems during the 4th quarter worth approximately $1,537,000. JPMorgan Chase & Co. increased its holdings in Merit Medical Systems by 7.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 917,122 shares of the medical instruments supplier's stock worth $76,332,000 after acquiring an additional 64,920 shares during the period. William Blair Investment Management LLC increased its holdings in Merit Medical Systems by 16.8% during the 3rd quarter. William Blair Investment Management LLC now owns 863,996 shares of the medical instruments supplier's stock worth $71,910,000 after acquiring an additional 124,396 shares during the period. Finally, Thrivent Financial for Lutherans increased its holdings in Merit Medical Systems by 250.5% during the 3rd quarter. Thrivent Financial for Lutherans now owns 750,066 shares of the medical instruments supplier's stock worth $62,428,000 after acquiring an additional 536,072 shares during the period. Institutional investors own 99.66% of the company's stock.

Merit Medical Systems Stock Down 5.6%

The stock's fifty day moving average is $70.68 and its two-hundred day moving average is $79.78. The company has a current ratio of 4.34, a quick ratio of 2.95 and a debt-to-equity ratio of 0.46. The firm has a market cap of $3.84 billion, a P/E ratio of 30.50, a price-to-earnings-growth ratio of 1.83 and a beta of 0.64.

Merit Medical Systems (NASDAQ:MMSI - Get Free Report) last posted its earnings results on Tuesday, February 24th. The medical instruments supplier reported $1.04 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.08. The business had revenue of $393.94 million for the quarter, compared to analyst estimates of $390.77 million. Merit Medical Systems had a net margin of 8.48% and a return on equity of 13.82%. Merit Medical Systems's revenue was up 10.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.93 EPS. Merit Medical Systems has set its FY 2026 guidance at 4.010-4.150 EPS. As a group, research analysts anticipate that Merit Medical Systems, Inc. will post 3.61 earnings per share for the current year.

Merit Medical Systems Company Profile

Merit Medical Systems, Inc is a global manufacturer and marketer of a broad range of medical devices used in diagnostic and interventional procedures. The company's product portfolio encompasses vascular access, drainage, embolotherapy, and interventional oncology devices, as well as radiofrequency ablation systems and hemostasis solutions. These products serve physicians and hospitals in critical care settings and support minimally invasive treatment options across multiple specialties, including cardiology, radiology, oncology, neurology and endoscopy.

Founded in 1987 by Fred Lampropoulos, Merit Medical Systems has grown through both organic development and targeted acquisitions to expand its technology offerings and geographic reach.

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