Stryker (NYSE:SYK) Stock Breaks Below Two Hundred Day Moving Average - Here's Why

Key Points

• Stryker shares fell below their 200-day moving average, reaching $315.37 before last trading at $318.67, below the $323.05 average.
• Analysts have a consensus “Moderate Buy” rating and $342.19 price target, though recent target changes were mixed; 21 analysts rated the stock Buy and seven Hold.
• Stryker’s latest quarterly results missed estimates: EPS was $3.52 versus $3.55 expected, and revenue was $6.52 billion versus $6.62 billion forecast. Revenue nevertheless grew 7.6% year over year.

Shares of Stryker Corporation (NYSE:SYK - Get Free Report) passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $323.05 and traded as low as $315.37. Stryker shares last traded at $318.6710, with a volume of 3,215,322 shares.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SYK. BMO Capital Markets reissued an "outperform" rating and set a $309.00 target price (down from $317.00) on shares of Stryker in a research report on Friday, October 30th. Sanford C. Bernstein restated a "market perform" rating on shares of Stryker in a research note on Wednesday, October 7th. Evercore increased their price objective on Stryker from $335.00 to $355.00 in a report on Wednesday, October 28th. Citizens Jmp decreased their target price on Stryker from $400.00 to $390.00 and set a "market outperform" rating for the company in a report on Friday, October 30th. Finally, Deutsche Bank dropped their target price on Stryker from $315.00 to $275.00 and set a "hold" rating on the stock in a research report on Friday, October 30th. Twenty-one equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Stryker has an average rating of "Moderate Buy" and a consensus price target of $342.19.

Stryker Trading Down 1.7%

The company has a quick ratio of 1.30, a current ratio of 2.18 and a debt-to-equity ratio of 0.60. The company's 50-day moving average is $292.27 and its 200 day moving average is $323.05. The company has a market cap of $121.31 billion, a price-to-earnings ratio of 33.94, a price-to-earnings-growth ratio of 2.23 and a beta of 0.78.

Stryker (NYSE:SYK - Get Free Report) last posted its earnings results on Thursday, October 29th. The medical technology company reported $3.52 EPS for the quarter, missing analysts' consensus estimates of $3.55 by ($0.03). The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.62 billion. Stryker had a net margin of 13.78% and a return on equity of 23.74%. Stryker's revenue was up 7.6% on a year-over-year basis. During the same quarter last year, the business earned $3.19 earnings per share. Research analysts predict that Stryker Corporation will post 14.85 EPS for the current year.

Insiders Place Their Bets

In other Stryker news, insider Debra King sold 826 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $336.30, for a total transaction of $277,783.80. Following the transaction, the insider directly owned 6,210 shares of the company's stock, valued at $2,088,423. This trade represents a 11.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Dylan Crotty sold 441 shares of the company's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $328.61, for a total transaction of $144,917.01. Following the transaction, the insider owned 6,102 shares of the company's stock, valued at approximately $2,005,178.22. This trade represents a 6.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 901,267 shares of company stock worth $297,123,701. Company insiders own 4.60% of the company's stock.

Hedge Funds Weigh In On Stryker

Hedge funds and other institutional investors have recently modified their holdings of the business. Gables Capital Management Inc. purchased a new stake in shares of Stryker in the second quarter valued at approximately $25,000. Kilter Group LLC purchased a new stake in Stryker in the 2nd quarter valued at $25,000. Cornerstone Financial Management LLC grew its holdings in Stryker by 66.0% in the 2nd quarter. Cornerstone Financial Management LLC now owns 78 shares of the medical technology company's stock valued at $25,000 after buying an additional 31 shares in the last quarter. Highland Investment Advisors LLC acquired a new stake in shares of Stryker in the 2nd quarter worth $25,000. Finally, Compass Financial Management LLC acquired a new position in shares of Stryker during the 2nd quarter valued at about $27,000. 77.09% of the stock is owned by hedge funds and other institutional investors.

Stryker Company Profile

Stryker is a medical technology company that develops and sells products and services for healthcare providers. Its offerings include orthopedic implants and surgical equipment, neurotechnology and spine products, and medical and surgical equipment used in hospitals and other care settings. The company's products also include patient-handling and emergency medical equipment, as well as instruments and technologies that support surgical procedures. Stryker serves healthcare customers in the United States and internationally.

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