Zimmer Biomet (NYSE:ZBH) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Zimmer Biomet to “strong sell” from “hold.” Despite mixed analyst views, the stock carries a consensus “hold” rating and a $102 average price target.
• Zimmer Biomet shares traded up 3.8% to $95.57, while the company reported quarterly adjusted EPS of $2.09, beating estimates of $1.86, and revenue of $2.09 billion, up 9.3% year over year.
• An insider sold 5,000 shares worth approximately $413,200, while institutional investors own 88.89% of the company’s stock.

Zimmer Biomet (NYSE:ZBH - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

Other analysts also recently issued reports about the company. UBS Group began coverage on Zimmer Biomet in a report on Tuesday. They set a "buy" rating and a $115.00 price target for the company. JPMorgan Chase & Co. dropped their price objective on Zimmer Biomet from $100.00 to $95.00 and set a "neutral" rating on the stock in a report on Wednesday, April 29th. Leerink Partners began coverage on Zimmer Biomet in a research note on Monday, April 13th. They set a "hold" rating and a $101.00 target price for the company. Barclays lowered their price target on Zimmer Biomet from $100.00 to $94.00 and set an "underweight" rating for the company in a report on Wednesday, April 29th. Finally, Stifel Nicolaus cut their price objective on shares of Zimmer Biomet from $110.00 to $105.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $102.00.

Zimmer Biomet Trading Up 3.8%

Shares of NYSE:ZBH opened at $95.57 on Monday. Zimmer Biomet has a 52 week low of $79.12 and a 52 week high of $108.29. The company's 50 day moving average is $88.23 and its two-hundred day moving average is $89.79. The company has a market cap of $18.49 billion, a PE ratio of 24.82, a P/E/G ratio of 2.71 and a beta of 0.46. The company has a current ratio of 1.73, a quick ratio of 0.95 and a debt-to-equity ratio of 0.50.

Zimmer Biomet (NYSE:ZBH - Get Free Report) last issued its earnings results on Tuesday, April 28th. The medical equipment provider reported $2.09 EPS for the quarter, topping analysts' consensus estimates of $1.86 by $0.23. The firm had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $2.07 billion. Zimmer Biomet had a net margin of 9.05% and a return on equity of 13.24%. The company's revenue was up 9.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.81 earnings per share. Equities analysts predict that Zimmer Biomet will post 8.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Sang Yi sold 5,000 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $82.64, for a total transaction of $413,200.00. Following the completion of the sale, the insider owned 27,251 shares in the company, valued at $2,252,022.64. This represents a 15.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.28% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zimmer Biomet

A number of institutional investors and hedge funds have recently made changes to their positions in ZBH. Tema ETFs LLC grew its holdings in shares of Zimmer Biomet by 39.8% during the second quarter. Tema ETFs LLC now owns 4,194 shares of the medical equipment provider's stock worth $361,000 after buying an additional 1,194 shares during the last quarter. Kentucky Trust Co raised its stake in Zimmer Biomet by 285.0% during the 2nd quarter. Kentucky Trust Co now owns 770 shares of the medical equipment provider's stock valued at $66,000 after acquiring an additional 570 shares during the last quarter. Handelsbanken Fonder AB lifted its position in Zimmer Biomet by 22.7% during the 2nd quarter. Handelsbanken Fonder AB now owns 152,064 shares of the medical equipment provider's stock worth $13,091,000 after acquiring an additional 28,130 shares during the period. Valeo Financial Advisors LLC lifted its position in Zimmer Biomet by 1.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 11,176 shares of the medical equipment provider's stock worth $962,000 after acquiring an additional 175 shares during the period. Finally, Wilsey Asset Management Inc. grew its stake in shares of Zimmer Biomet by 4.7% in the 2nd quarter. Wilsey Asset Management Inc. now owns 421,867 shares of the medical equipment provider's stock valued at $36,318,000 after purchasing an additional 18,883 shares during the last quarter. 88.89% of the stock is owned by hedge funds and other institutional investors.

Zimmer Biomet Company Profile

Zimmer Biomet NYSE: ZBH is a global medical device company focused on musculoskeletal healthcare. Headquartered in Warsaw, Indiana, the company designs, manufactures and markets a broad portfolio of products used to treat joint disorders, bone disorders and related conditions. Its customer base includes orthopaedic and dental surgeons, hospitals, ambulatory surgery centers and other healthcare providers that rely on implants, instruments and related services for reconstructive and restorative procedures.

The company's product offerings span joint replacement systems for hips, knees and shoulders; trauma and extremities implants; spine and thoracic solutions; dental and craniomaxillofacial implants and prosthetics; and sports medicine devices.

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