Smith & Nephew SNATS (NYSE:SNN) Trading Down 5.8% on Disappointing Earnings

Key Points

• Smith & Nephew SNATS shares fell 5.8% to about $30.29 after the company reported quarterly EPS of $0.48, well below the $0.94 analyst consensus, while revenue of $1.55 billion also missed expectations.
• Analyst sentiment remains cautious, with the stock carrying an average “Hold” rating from six analysts and an average price target of $30.93.
• Institutional ownership stands at 25.64%, with several investors increasing their positions during the first and second quarters, including Goldman Sachs, which boosted its stake by 49.2%.

Smith & Nephew SNATS, Inc. (NYSE:SNN - Get Free Report)'s stock price fell 5.8% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $30.14 and last traded at $30.29. 786,082 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 1,179,007 shares. The stock had previously closed at $32.15.

The medical equipment provider reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.46). The firm had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.64 billion.

Analyst Upgrades and Downgrades

A number of analysts have commented on SNN shares. Weiss Ratings lowered Smith & Nephew SNATS from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, June 11th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Smith & Nephew SNATS in a report on Monday, May 25th. Wall Street Zen raised Smith & Nephew SNATS from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 4th. Sanford C. Bernstein set a $31.85 price objective on Smith & Nephew SNATS in a report on Monday, May 11th. Finally, Canaccord Genuity Group decreased their target price on Smith & Nephew SNATS from $32.00 to $30.00 and set a "hold" rating for the company in a research report on Monday, May 11th. One research analyst has rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $30.93.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Royal Bank of Canada grew its stake in shares of Smith & Nephew SNATS by 16.7% during the 1st quarter. Royal Bank of Canada now owns 340,428 shares of the medical equipment provider's stock valued at $9,657,000 after purchasing an additional 48,784 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Smith & Nephew SNATS by 49.2% in the first quarter. Goldman Sachs Group Inc. now owns 1,771,401 shares of the medical equipment provider's stock worth $50,255,000 after buying an additional 583,809 shares during the last quarter. Focus Partners Wealth grew its position in Smith & Nephew SNATS by 59.8% during the first quarter. Focus Partners Wealth now owns 19,438 shares of the medical equipment provider's stock valued at $552,000 after buying an additional 7,277 shares during the period. Cetera Investment Advisers grew its position in Smith & Nephew SNATS by 5.9% during the second quarter. Cetera Investment Advisers now owns 17,731 shares of the medical equipment provider's stock valued at $543,000 after buying an additional 983 shares during the period. Finally, EverSource Wealth Advisors LLC increased its holdings in Smith & Nephew SNATS by 219.2% during the second quarter. EverSource Wealth Advisors LLC now owns 5,261 shares of the medical equipment provider's stock valued at $161,000 after buying an additional 3,613 shares during the last quarter. Institutional investors own 25.64% of the company's stock.

Smith & Nephew SNATS Price Performance

The company has a current ratio of 2.57, a quick ratio of 1.25 and a debt-to-equity ratio of 0.60. The stock's fifty day simple moving average is $30.45 and its 200 day simple moving average is $32.19.

About Smith & Nephew SNATS

Smith & Nephew plc is a global medical technology company specializing in the design, development and manufacture of advanced surgical devices, orthopaedic reconstruction implants, trauma and extremities products, sports medicine solutions and wound care therapies. Founded in 1856 in Hull, United Kingdom, the company has grown through both organic innovation and strategic acquisitions to offer a broad portfolio that addresses patient needs across joint replacement, minimally invasive surgery and wound healing.

In its orthopaedics business, Smith & Nephew provides hip and knee replacement systems, modular joint revision implants and biologic solutions for bone repair.

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