OrthoPediatrics (NASDAQ:KIDS) Sees Large Volume Increase - Should You Buy?

Key Points

• Trading volume surged 89% to 334,912 shares, while OrthoPediatrics’ stock traded near $23.52. Analysts maintain a “Moderate Buy” consensus, with an average price target of $26.50.
• The company beat quarterly expectations, reporting an adjusted loss of $0.26 per share versus the estimated $0.30 loss and revenue of $70.51 million versus the $68.21 million consensus. However, it remains unprofitable, with a negative net margin and analysts expecting a full-year loss.
• Insiders sold heavily: insiders sold 2.1 million shares worth approximately $46.7 million over the past 90 days, while institutional investors own about 69% of the company.

OrthoPediatrics Corp. (NASDAQ:KIDS - Get Free Report) saw unusually-strong trading volume on Wednesday. 334,912 shares traded hands during mid-day trading, an increase of 89% from the previous session's volume of 176,969 shares. The stock last traded at $23.5170 and had previously closed at $23.50.

Analyst Upgrades and Downgrades

KIDS has been the subject of several analyst reports. Truist Financial upgraded OrthoPediatrics to a "hold" rating in a research note on Thursday, October 1st. Piper Sandler reissued an "overweight" rating and issued a $25.00 price target (up from $22.00) on shares of OrthoPediatrics in a research note on Wednesday, August 5th. Weiss Ratings upgraded OrthoPediatrics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, August 5th. BTIG Research restated a "buy" rating and issued a $29.00 price target on shares of OrthoPediatrics in a report on Monday, September 14th. Finally, Needham & Company LLC upped their price objective on shares of OrthoPediatrics from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $26.50.

OrthoPediatrics Stock Performance

The company has a quick ratio of 2.17, a current ratio of 4.78 and a debt-to-equity ratio of 0.28. The company has a market cap of $615.41 million, a PE ratio of -14.03 and a beta of 0.99. The stock's 50 day simple moving average is $23.04 and its two-hundred day simple moving average is $20.05.

OrthoPediatrics (NASDAQ:KIDS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.04. The company had revenue of $70.51 million during the quarter, compared to analysts' expectations of $68.21 million. OrthoPediatrics had a negative net margin of 15.72% and a negative return on equity of 8.10%. As a group, research analysts anticipate that OrthoPediatrics Corp. will post -1.14 earnings per share for the current year.

Insider Buying and Selling at OrthoPediatrics

In other OrthoPediatrics news, major shareholder Jennifer Pritzker sold 302,369 shares of the company's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $21.01, for a total transaction of $6,352,772.69. Following the completion of the sale, the insider directly owned 6,201,764 shares in the company, valued at $130,299,061.64. This represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director David Pelizzon sold 302,369 shares of the firm's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $21.01, for a total value of $6,352,772.69. Following the completion of the transaction, the director owned 6,201,764 shares in the company, valued at approximately $130,299,061.64. This trade represents a 4.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 2,100,000 shares of company stock valued at $46,747,931. Company insiders own 32.50% of the company's stock.

Institutional Trading of OrthoPediatrics

A number of institutional investors and hedge funds have recently bought and sold shares of KIDS. GAMMA Investing LLC grew its stake in OrthoPediatrics by 70.3% during the third quarter. GAMMA Investing LLC now owns 1,165 shares of the company's stock worth $26,000 after buying an additional 481 shares during the period. Waverly Advisors LLC increased its position in shares of OrthoPediatrics by 6.7% in the second quarter. Waverly Advisors LLC now owns 12,366 shares of the company's stock worth $237,000 after acquiring an additional 775 shares in the last quarter. Legal & General Group Plc acquired a new stake in shares of OrthoPediatrics in the second quarter worth $34,000. Quantinno Capital Management LP purchased a new position in shares of OrthoPediatrics in the 1st quarter valued at $160,000. Finally, R Squared Ltd purchased a new position in shares of OrthoPediatrics in the 1st quarter valued at $212,000. Institutional investors and hedge funds own 69.05% of the company's stock.

About OrthoPediatrics

OrthoPediatrics Corp. is a medical device company focused exclusively on developing and commercializing orthopedic products for children. Headquartered in Warsaw, Indiana, the company designs implants and instruments intended to address the distinct anatomical and clinical needs of pediatric patients, including those whose bones are still growing.

Its product portfolio includes systems for pediatric trauma and deformity correction, scoliosis treatment, limb reconstruction, and pediatric sports medicine.

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