LivaNova (NASDAQ:LIVN) Sets New 12-Month High on Earnings Beat

Key Points

• LivaNova beat quarterly earnings and revenue expectations: EPS was $1.23 versus the $1.06 consensus, while revenue of $393.1 million topped estimates of $381.13 million and rose 9.9% year over year.
• Shares reached a new 52-week high after the report, trading as high as $90, compared with the previous close of $79.90.
• Analysts’ consensus rating is “Moderate Buy”, with a $87.75 average price target; company insiders sold 7,450 shares worth about $591,839 over the past 90 days.

Shares of LivaNova PLC (NASDAQ:LIVN - Get Free Report) hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $90.00 and last traded at $90.6750, with a volume of 14,495 shares traded. The stock had previously closed at $79.90.

The company reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.17. The business had revenue of $393.10 million during the quarter, compared to analyst estimates of $381.13 million. LivaNova had a net margin of 12.82% and a return on equity of 16.35%. The company's revenue was up 9.9% on a year-over-year basis. During the same period last year, the firm posted $1.11 EPS.

Analyst Ratings Changes

LIVN has been the topic of several recent research reports. Barclays raised shares of LivaNova to a "strong-buy" rating in a research note on Wednesday, October 7th. Needham & Company LLC upped their target price on LivaNova from $81.00 to $93.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Zacks Research downgraded LivaNova from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 19th. Stifel Nicolaus set a $85.00 target price on LivaNova in a research note on Wednesday, August 5th. Finally, Weiss Ratings upgraded LivaNova from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, October 27th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $87.75.

Insider Activity

In related news, Director Brooke Story sold 2,300 shares of the company's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $81.42, for a total value of $187,266.00. Following the sale, the director owned 7,488 shares of the company's stock, valued at $609,672.96. The trade was a 23.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Francesco Bianchi sold 3,500 shares of LivaNova stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $78.01, for a total transaction of $273,035.00. Following the sale, the director directly owned 4,434 shares of the company's stock, valued at $345,896.34. This represents a 44.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 7,450 shares of company stock worth $591,839. Corporate insiders own 0.35% of the company's stock.

Institutional Trading of LivaNova

Several institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its position in shares of LivaNova by 2.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,826,248 shares of the company's stock valued at $116,067,000 after purchasing an additional 38,320 shares during the period. Janus Henderson Group PLC raised its position in shares of LivaNova by 1,978.8% during the 1st quarter. Janus Henderson Group PLC now owns 471,379 shares of the company's stock valued at $29,961,000 after buying an additional 448,703 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in LivaNova during the first quarter valued at about $18,327,000. Sei Investments Co. lifted its position in LivaNova by 56.6% in the 1st quarter. Sei Investments Co. now owns 218,805 shares of the company's stock worth $13,907,000 after buying an additional 79,088 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its stake in shares of LivaNova by 15.7% in the 1st quarter. Renaissance Technologies LLC now owns 183,000 shares of the company's stock valued at $11,631,000 after purchasing an additional 24,900 shares in the last quarter. Institutional investors own 97.64% of the company's stock.

LivaNova Stock Performance

The stock has a market cap of $5.20 billion, a PE ratio of 27.99 and a beta of 0.91. The company has a quick ratio of 1.21, a current ratio of 1.45 and a debt-to-equity ratio of 0.22. The company has a fifty day moving average price of $78.56 and a 200 day moving average price of $73.10.

LivaNova Company Profile

LivaNova PLC NASDAQ: LIVN is a medical technology company that develops and manufactures devices and therapies for patients with neurological and cardiovascular conditions. Its products are used by hospitals, physicians and other healthcare providers in markets around the world.

The company's Neuromodulation business is best known for VNS Therapy, which uses an implanted device to deliver electrical stimulation to the vagus nerve. The therapy is used primarily for drug-resistant epilepsy and treatment-resistant depression, subject to applicable regulatory approvals.

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