Medline (NASDAQ:MDLN) Sets New 12-Month Low - Should You Sell?

Key Points

• Medline shares fell to a new 52-week low of $32.44, below the $34.05 prior close, with the stock trading under both its 50-day and 200-day moving averages.
• Analysts remain broadly positive despite lowering price targets: 23 rate the stock Buy or Strong Buy, five recommend Hold, and one recommends Sell. The consensus rating is “Moderate Buy,” with an average target of $47.42.
• Medline beat quarterly earnings expectations, reporting $0.50 EPS versus the $0.32 estimate and $7.68 billion in revenue. However, insiders sold 4.54 million shares worth approximately $161.9 million over the past three months.

Medline (NASDAQ:MDLN - Get Free Report) shares hit a new 52-week low on Thursday . The company traded as low as $32.44 and last traded at $32.4050, with a volume of 5032109 shares changing hands. The stock had previously closed at $34.05.

Analyst Upgrades and Downgrades

MDLN has been the subject of a number of analyst reports. Stifel Nicolaus lowered their target price on shares of Medline from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Truist Financial decreased their price target on Medline from $56.00 to $47.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Tigress Financial lowered their price objective on Medline from $62.00 to $55.00 and set a "buy" rating for the company in a research report on Tuesday, August 11th. JPMorgan Chase & Co. dropped their price objective on Medline from $53.00 to $46.00 and set an "overweight" rating on the stock in a report on Wednesday, August 12th. Finally, Deutsche Bank Aktiengesellschaft set a $37.00 target price on Medline in a research report on Thursday, August 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $47.42.

Medline Price Performance

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 cap of $42.58 billion and a price-to-earnings ratio of 41.00. The stock has a 50-day moving average price of $37.57 and a 200 day moving average price of $40.02.

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

Insider Activity at Medline

In related news, insider Douglas P. Golwas sold 100,000 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $36.77, for a total value of $3,677,000.00. Following the completion of the sale, the insider owned 23,899 shares in the company, valued at $878,766.23. This represents a 80.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Private Ltd Gic sold 100,000 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $35.80, for a total transaction of $3,580,000.00. Following the sale, the insider owned 22,802,482 shares of the company's stock, valued at approximately $816,328,855.60. This represents a 0.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 4,538,896 shares of company stock valued at $161,936,454 over the last three months. Corporate insiders own 0.81% of the company's stock.

Institutional Investors Weigh In On Medline

Hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC increased its position 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 acquiring an additional 254 shares during the period. NewEdge Advisors LLC lifted its position in Medline by 100.0% during the 2nd quarter. NewEdge Advisors LLC now owns 950 shares of the company's stock worth $37,000 after acquiring an additional 475 shares during the period. Allworth Financial LP increased its holdings in shares of Medline by 86.2% in the second quarter. Allworth Financial LP now owns 1,052 shares of the company's stock valued at $41,000 after purchasing an additional 487 shares during the period. North Star Investment Management Corp. increased its holdings in shares of Medline by 60.2% in the first quarter. North Star Investment Management Corp. now owns 1,362 shares of the company's stock valued at $61,000 after purchasing an additional 512 shares during the period. Finally, Entrust Financial LLC purchased a new stake in shares of Medline during the fourth quarter worth approximately $26,000.

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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