Medline (NASDAQ:MDLN) Sets New 1-Year Low - What's Next?

Key Points

• Medline shares fell to a new 52-week low, reaching $31.63 before closing at $32.11, down 1.5%. The stock’s market capitalization is approximately $42.2 billion.
• Analysts have lowered several price targets, but sentiment remains positive: Medline has a consensus “Moderate Buy” rating and an average target of $47.42, well above its recent trading price.
• Medline exceeded quarterly earnings expectations, reporting $0.50 in earnings per share versus a $0.32 consensus estimate on $7.68 billion in revenue. However, a major shareholder sold nearly 2 million shares, contributing to recent insider selling activity.

Medline (NASDAQ:MDLN - Get Free Report) shares hit a new 52-week low on Wednesday . The stock traded as low as $31.63 and last traded at $32.11, with a volume of 7280176 shares. The stock had previously closed at $32.59.

Analysts Set New Price Targets

Several brokerages have recently commented on MDLN. Tigress Financial decreased their price target on Medline from $62.00 to $55.00 and set a "buy" rating on the stock in a research note on Tuesday, August 11th. Barclays lowered their target price on Medline from $50.00 to $45.00 and set an "overweight" rating on the stock in a report on Monday, June 1st. Stifel Nicolaus dropped their price target on Medline from $50.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Evercore set a $39.00 price target on Medline in a research note on Thursday, August 6th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Medline from $53.00 to $46.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $47.42.

Medline Trading Down 1.5%

The firm has a market cap of $42.22 billion and a price-to-earnings ratio of 40.65. The business has a 50 day moving average of $36.72 and a 200 day moving average of $39.54. The company has a quick ratio of 2.61, a current ratio of 4.33 and a debt-to-equity ratio of 0.66.

Medline (NASDAQ:MDLN - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.18. The firm had revenue of $7.68 billion during the quarter. On average, research analysts forecast that Medline will post 1.51 earnings per share for the current fiscal year.

Insider Buying and Selling at Medline

In related news, major shareholder Private Ltd Gic sold 1,976,618 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $35.60, for a total transaction of $70,367,600.80. Following the transaction, the insider owned 25,264,760 shares of the company's stock, valued at approximately $899,425,456. This represents a 7.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders have sold a total of 4,438,896 shares of company stock valued at $158,259,454 over the last ninety days. Insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Entrust Financial LLC purchased a new position in Medline during the fourth quarter worth approximately $26,000. GAMMA Investing LLC boosted its holdings in shares of 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 purchasing an additional 254 shares during the last quarter. Whipplewood Advisors LLC purchased a new stake in shares of Medline during the 1st quarter valued at $30,000. NewEdge Advisors LLC grew its stake in shares of Medline by 100.0% during the 2nd quarter. NewEdge Advisors LLC now owns 950 shares of the company's stock valued at $37,000 after buying an additional 475 shares during the period. Finally, Allworth Financial LP increased its holdings in shares of Medline by 86.2% during the 2nd quarter. Allworth Financial LP now owns 1,052 shares of the company's stock worth $41,000 after buying an additional 487 shares during the last quarter.

Medline Company Profile

Medline Industries, Inc is a healthcare company that manufactures and distributes medical supplies and clinical products. Its offerings include surgical and exam gloves, personal protective equipment, operating-room supplies, wound-care products, patient-care items, laboratory products, apparel, and durable medical equipment.

The company serves hospitals, health systems, ambulatory surgery centers, physicians' offices, long-term-care facilities, home-health providers, and other healthcare organizations.

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