Zimmer Biomet (NYSE:ZBH) Reaches New 12-Month Low - Here's Why

Key Points

• Zimmer Biomet shares hit a new 52-week low, trading as low as $79.60 intraday after closing at $82.33, and were down about 3.2% on the session.
• Analyst sentiment remains cautious: the stock carries a consensus “Hold” rating with an average price target of $102.80, even as several firms recently cut targets or reiterated neutral/hold views.
• The company reported better-than-expected quarterly results, with EPS of $2.09 versus estimates of $1.86 and revenue of $2.09 billion, while also paying a quarterly dividend of $0.24 per share.

Zimmer Biomet Holdings, Inc. (NYSE:ZBH - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $79.60 and last traded at $79.1940, with a volume of 672006 shares trading hands. The stock had previously closed at $82.33.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Truist Financial reiterated a "hold" rating and set a $92.00 target price (down from $98.00) on shares of Zimmer Biomet in a research note on Wednesday, April 29th. JPMorgan Chase & Co. dropped their price target on Zimmer Biomet from $100.00 to $95.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 29th. Wall Street Zen raised Zimmer Biomet from a "hold" rating to a "buy" rating in a report on Saturday. Canaccord Genuity Group set a $83.00 price objective on shares of Zimmer Biomet in a report on Wednesday, April 29th. Finally, Needham & Company LLC reissued a "hold" rating on shares of Zimmer Biomet in a research report on Tuesday, February 10th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $102.80.

Zimmer Biomet Trading Down 3.2%

The business has a fifty day moving average price of $91.56 and a 200-day moving average price of $92.31. The company has a quick ratio of 0.95, a current ratio of 1.73 and a debt-to-equity ratio of 0.50. The company has a market cap of $15.41 billion, a P/E ratio of 20.69, a PEG ratio of 1.90 and a beta of 0.48.

Zimmer Biomet (NYSE:ZBH - Get Free Report) last announced its earnings results on Tuesday, April 28th. The medical equipment provider reported $2.09 earnings per share for the quarter, topping analysts' consensus estimates of $1.86 by $0.23. The company had revenue of $2.09 billion for the quarter, compared to analyst estimates of $2.07 billion. Zimmer Biomet had a return on equity of 13.24% and a net margin of 9.05%.The firm's quarterly revenue was up 9.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.81 earnings per share. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. On average, analysts forecast that Zimmer Biomet Holdings, Inc. will post 8.47 earnings per share for the current year.

Zimmer Biomet Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st were issued a dividend of $0.24 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.2%. Zimmer Biomet's dividend payout ratio (DPR) is currently 24.94%.

Insider Activity

In other news, SVP Lori Winkler sold 2,650 shares of the business's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $94.66, for a total value of $250,849.00. Following the completion of the sale, the senior vice president owned 10,224 shares of the company's stock, valued at approximately $967,803.84. The trade was a 20.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 1.28% of the company's stock.

Institutional Trading of Zimmer Biomet

Several hedge funds and other institutional investors have recently bought and sold shares of the business. M&T Bank Corp increased its holdings in shares of Zimmer Biomet by 15,705.6% during the fourth quarter. M&T Bank Corp now owns 3,571,595 shares of the medical equipment provider's stock worth $321,158,000 after purchasing an additional 3,548,998 shares during the period. Norges Bank bought a new stake in shares of Zimmer Biomet in the fourth quarter valued at approximately $221,234,000. Franklin Resources Inc. grew its position in Zimmer Biomet by 43.2% during the fourth quarter. Franklin Resources Inc. now owns 6,685,987 shares of the medical equipment provider's stock worth $601,204,000 after buying an additional 2,017,857 shares in the last quarter. Auto Owners Insurance Co grew its position in Zimmer Biomet by 8,892.0% during the fourth quarter. Auto Owners Insurance Co now owns 2,009,712 shares of the medical equipment provider's stock worth $180,713,000 after buying an additional 1,987,362 shares in the last quarter. Finally, Dodge & Cox increased its stake in Zimmer Biomet by 5.1% during the 3rd quarter. Dodge & Cox now owns 23,216,173 shares of the medical equipment provider's stock worth $2,286,793,000 after acquiring an additional 1,118,710 shares during the period. Institutional investors and hedge funds own 88.89% of the company's stock.

About Zimmer Biomet

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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