Medline (NASDAQ:MDLN) Reaches New 12-Month Low - What's Next?

Key Points

• Medline shares hit a new 52-week low of $31.37 during Friday trading, below their 50-day and 200-day moving averages, giving the company a market capitalization of roughly $42.1 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $46.54, despite recent target reductions and a Zacks downgrade to “strong sell.”
• Medline exceeded quarterly earnings expectations, reporting $0.50 in EPS versus the $0.32 consensus and $7.68 billion in revenue, but insiders have sold more than 10.7 million shares worth approximately $382.8 million over the past quarter.

Medline (NASDAQ:MDLN - Get Free Report) reached a new 52-week low during mid-day trading on Friday. The company traded as low as $31.37 and last traded at $31.5680, with a volume of 1,012,768 shares changing hands. The stock had previously closed at $32.00.

Analysts Set New Price Targets

A number of research firms have recently weighed in on MDLN. Evercore set a $39.00 price target on shares of Medline in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $37.00 price target on Medline and gave the company a "hold" rating in a research report on Thursday, August 6th. Zacks Research downgraded Medline from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 20th. Bank of America reduced their target price on Medline from $53.00 to $46.00 in a research note on Thursday, August 6th. Finally, Stifel Nicolaus cut their price objective on Medline from $50.00 to $45.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $46.54.

Medline Price Performance

The stock's fifty day simple moving average is $34.52 and its 200 day simple moving average is $39.69. The company has a debt-to-equity ratio of 0.66, a current ratio of 4.33 and a quick ratio of 2.61. The firm has a market capitalization of $42.06 billion and a P/E ratio of 40.44.

Medline (NASDAQ:MDLN - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.32 by $0.18. The company had revenue of $7.68 billion for the quarter. On average, equities research analysts predict that Medline will post 1.49 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Private Ltd Gic sold 2,570,999 shares of Medline stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $35.35, for a total value of $90,884,814.65. Following the completion of the sale, the insider owned 20,231,483 shares in the company, valued at approximately $715,182,924.05. This trade represents a 11.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold 10,787,572 shares of company stock worth $382,784,591 over the last quarter. 0.81% of the stock is owned by insiders.

Hedge Funds Weigh In On Medline

Institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC grew its holdings in Medline by 68.3% in the 2nd quarter. GAMMA Investing LLC now owns 626 shares of the company's stock valued at $25,000 after buying an additional 254 shares during the period. NewEdge Advisors LLC grew its stake in shares of Medline by 100.0% in the second quarter. NewEdge Advisors LLC now owns 950 shares of the company's stock worth $37,000 after purchasing an additional 475 shares in the last quarter. Allworth Financial LP lifted its holdings in Medline by 86.2% in the 2nd quarter. Allworth Financial LP now owns 1,052 shares of the company's stock valued at $41,000 after acquiring an additional 487 shares during the last quarter. North Star Investment Management Corp. lifted its position in shares of Medline by 60.2% in the 1st quarter. North Star Investment Management Corp. now owns 1,362 shares of the company's stock valued at $61,000 after acquiring an additional 512 shares in the last quarter. Finally, Whipplewood Advisors LLC purchased a new position in Medline in the first quarter valued at about $30,000.

About Medline

Medline Industries, Inc is a medical-supply manufacturer and distributor headquartered in Northfield, Illinois. The company provides products and supply-chain services to healthcare organizations, including hospitals, ambulatory surgery centers, physician offices, long-term care facilities, home health providers and other care settings.

Its product portfolio includes medical-surgical supplies, surgical and operating-room products, patient-care items, examination gloves, protective apparel, laboratory products, respiratory-care equipment, durable medical equipment and products for infection prevention.

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