Smith & Nephew SNATS (NYSE:SNN) Sets New 12-Month High - Still a Buy?

Key Points

• Smith & Nephew SNATS recently reached a new 52-week high of $35.88 during mid-day trading, closing at $34.88.
• Brokerages are cautious, with HSBC downgrading the stock from a "strong-buy" to a "hold" rating, contributing to a consensus rating of "Hold" and an average target price of $28.00.
• Institutional investors have increased their stakes significantly, with notable increases of up to 500% in some cases during the first quarter.

Smith & Nephew SNATS, Inc. (NYSE:SNN - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $35.88 and last traded at $34.88, with a volume of 453734 shares traded. The stock had previously closed at $30.79.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Canaccord Genuity Group upped their price objective on shares of Smith & Nephew SNATS from $27.00 to $28.00 and gave the stock a "hold" rating in a report on Thursday, May 1st. HSBC cut shares of Smith & Nephew SNATS from a "buy" rating to a "hold" rating in a report on Friday, April 25th. Finally, Hsbc Global Res cut shares of Smith & Nephew SNATS from a "strong-buy" rating to a "hold" rating in a report on Friday, April 25th. Six research analysts have rated the stock with a hold rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $28.00.

Smith & Nephew SNATS Stock Performance

The stock has a market cap of $15.82 billion, a price-to-earnings ratio of 16.72, a price-to-earnings-growth ratio of 1.10 and a beta of 0.68. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.33 and a current ratio of 3.00. The stock's 50-day simple moving average is $30.57 and its two-hundred day simple moving average is $28.46.

Smith & Nephew SNATS Cuts Dividend

The business also recently disclosed a semi-annual dividend, which will be paid on Friday, November 7th. Stockholders of record on Friday, October 3rd will be given a dividend of $0.285 per share. The ex-dividend date of this dividend is Friday, October 3rd. This represents a dividend yield of 210.0%. Smith & Nephew SNATS's dividend payout ratio is currently 41.20%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Hexagon Capital Partners LLC lifted its holdings in Smith & Nephew SNATS by 63.3% in the first quarter. Hexagon Capital Partners LLC now owns 1,047 shares of the medical equipment provider's stock valued at $30,000 after buying an additional 406 shares during the period. National Bank of Canada FI lifted its holdings in Smith & Nephew SNATS by 36.5% in the fourth quarter. National Bank of Canada FI now owns 1,667 shares of the medical equipment provider's stock valued at $41,000 after buying an additional 446 shares during the period. Ashton Thomas Securities LLC lifted its holdings in Smith & Nephew SNATS by 0.9% in the second quarter. Ashton Thomas Securities LLC now owns 55,911 shares of the medical equipment provider's stock valued at $1,713,000 after buying an additional 509 shares during the period. Geneos Wealth Management Inc. lifted its holdings in Smith & Nephew SNATS by 15.0% in the first quarter. Geneos Wealth Management Inc. now owns 4,149 shares of the medical equipment provider's stock valued at $118,000 after buying an additional 541 shares during the period. Finally, Allspring Global Investments Holdings LLC lifted its holdings in Smith & Nephew SNATS by 4.8% in the second quarter. Allspring Global Investments Holdings LLC now owns 12,462 shares of the medical equipment provider's stock valued at $381,000 after buying an additional 570 shares during the period. Institutional investors and hedge funds own 25.64% of the company's stock.

About Smith & Nephew SNATS

Smith & Nephew plc engages in the development, manufacture, marketing, and sale of medical devices. It operates through the following segments: Orthopaedics, Sports Medicine and ENT, and Advanced Wound Management. The Orthopaedics and Sports Medicine and ENT segment consists of the following businesses: knee implants, hip implants, other reconstruction, trauma, sports medicine joint repair, arthroscopic enabling technologies, and ENT.