OrthoPediatrics Corp. (NASDAQ:KIDS) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate KIDS a "Moderate Buy" — 11 analysts cover OrthoPediatrics with a split of 1 sell, 1 hold, 8 buy and 1 strong buy, and the average 12‑month target price is about $24.67.
• OrthoPediatrics slightly beat the quarter's estimates (EPS of -$0.26 vs. -$0.37 expected; revenue $61.61M vs. $61.27M) but remains unprofitable with negative ROE and net margin, and analysts forecast ~-1.07 EPS for the fiscal year.
• Insiders have been selling recently (58,171 shares valued at ~$1.0M over the last 90 days) while institutional ownership is high at about 69.05%, with several hedge funds materially increasing stakes.

OrthoPediatrics Corp. (NASDAQ:KIDS - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eleven analysts that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation, eight have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $24.6667.

A number of brokerages have recently commented on KIDS. BTIG Research increased their price objective on OrthoPediatrics from $23.00 to $24.00 and gave the company a "buy" rating in a research report on Friday, February 27th. Weiss Ratings reiterated a "sell (e+)" rating on shares of OrthoPediatrics in a research report on Thursday, January 22nd. TD Cowen upgraded OrthoPediatrics to a "strong-buy" rating in a research report on Tuesday, January 27th. Needham & Company LLC increased their price objective on OrthoPediatrics from $26.00 to $30.00 and gave the company a "buy" rating in a research report on Friday, February 27th. Finally, Wall Street Zen upgraded OrthoPediatrics from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th.

OrthoPediatrics Stock Performance

KIDS opened at $16.37 on Thursday. The company has a market capitalization of $413.82 million, a price-to-earnings ratio of -9.69 and a beta of 1.16. The company has a debt-to-equity ratio of 0.28, a current ratio of 5.55 and a quick ratio of 2.65. OrthoPediatrics has a 1-year low of $14.91 and a 1-year high of $23.70. The business has a 50 day moving average price of $16.90 and a two-hundred day moving average price of $17.37.

OrthoPediatrics (NASDAQ:KIDS - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.26) earnings per share for the quarter, topping analysts' consensus estimates of ($0.37) by $0.11. The firm had revenue of $61.61 million during the quarter, compared to the consensus estimate of $61.27 million. OrthoPediatrics had a negative return on equity of 6.70% and a negative net margin of 16.77%. Research analysts predict that OrthoPediatrics will post -1.07 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Joseph W. Hauser sold 8,596 shares of OrthoPediatrics stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.25, for a total value of $148,281.00. Following the transaction, the insider directly owned 194,767 shares of the company's stock, valued at $3,359,730.75. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Daniel J. Gerritzen sold 8,614 shares of OrthoPediatrics stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $17.25, for a total transaction of $148,591.50. Following the completion of the transaction, the general counsel directly owned 149,533 shares in the company, valued at approximately $2,579,444.25. This trade represents a 5.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 58,171 shares of company stock valued at $1,003,450 over the last 90 days. 32.70% of the stock is owned by corporate insiders.

Institutional Trading of OrthoPediatrics

A number of hedge funds have recently modified their holdings of KIDS. Millennium Management LLC lifted its holdings in shares of OrthoPediatrics by 48.0% in the fourth quarter. Millennium Management LLC now owns 1,396,495 shares of the company's stock valued at $24,802,000 after purchasing an additional 452,840 shares in the last quarter. Prosight Management LP lifted its holdings in shares of OrthoPediatrics by 319.2% in the third quarter. Prosight Management LP now owns 308,707 shares of the company's stock valued at $5,720,000 after purchasing an additional 235,060 shares in the last quarter. Deerfield Management Company L.P. lifted its holdings in shares of OrthoPediatrics by 1,153.4% in the third quarter. Deerfield Management Company L.P. now owns 194,109 shares of the company's stock valued at $3,597,000 after purchasing an additional 178,623 shares in the last quarter. Nantahala Capital Management LLC lifted its holdings in shares of OrthoPediatrics by 303.3% in the fourth quarter. Nantahala Capital Management LLC now owns 199,449 shares of the company's stock valued at $3,542,000 after purchasing an additional 150,000 shares in the last quarter. Finally, RA Capital Management L.P. purchased a new stake in shares of OrthoPediatrics in the fourth quarter valued at $1,953,000. Hedge funds and other institutional investors own 69.05% of the company's stock.

OrthoPediatrics Company Profile

OrthoPediatrics Corp., founded in 2007 and headquartered in Warsaw, Indiana, is a medical device company dedicated exclusively to providing orthopedic solutions for children. The company focuses on developing, manufacturing and marketing a broad portfolio of implants and instruments designed to address a wide range of pediatric conditions, including trauma, deformity correction, spine disorders and sports injuries.

The company's product lines include locking plates and screws for upper and lower extremity reconstruction, intramedullary nails for femur and tibia stabilization, and specialized systems such as the MAGEC Magnetic Growth Rod for treatment of early-onset scoliosis.

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