Zimmer Biomet (NYSE:ZBH) Shares Down 8.8% - Should You Sell?

Key Points

• Q1 beat and guidance raise: Zimmer Biomet reported adjusted EPS of $2.09 (vs. ~$1.86 est.) and $2.09B revenue, and raised FY‑2026 adjusted EPS guidance to $8.40–$8.55, yet the stock still fell about 8.8% intraday.
• Execution and governance concerns drove the selloff: Investors focused on immediate CFO departure and reported CEO exit plus only modest organic growth (~2.9% on a constant‑currency basis), outweighing the headline beat.

Zimmer Biomet Holdings, Inc. (NYSE:ZBH - Get Free Report) shares traded down 8.8% on Tuesday . The stock traded as low as $83.94 and last traded at $84.4710. 2,701,336 shares changed hands during mid-day trading, an increase of 25% from the average session volume of 2,167,881 shares. The stock had previously closed at $92.59.

Key Headlines Impacting Zimmer Biomet

Here are the key news stories impacting Zimmer Biomet this week:

• Positive Sentiment: Q1 beat on both EPS (adjusted $2.09 vs. ~$1.86 est.) and revenue (~$2.09B vs. ~$2.06B); revenue grew ~9.3% year‑over‑year with margin expansion noted. PR Newswire Q1 Results
• Positive Sentiment: Management raised FY‑2026 adjusted EPS guidance to $8.40–$8.55 (above the prior consensus ~8.39) and reiterated revenue guidance of ~$8.4–$8.6B, signaling confidence in demand and new product uptake. Reuters: Guidance Raise & CFO Departure
• Positive Sentiment: Company cited strong device demand and new product launches as drivers of outperformance and margin improvement this quarter. Earnings Call Transcript
• Neutral Sentiment: Underlying organic growth was modest on an organic constant‑currency basis (reported 9.3%, organic CC ~2.9%), suggesting some of the beat was mix‑ and currency‑related rather than broad-based acceleration. PR Newswire Q1 Results
• Negative Sentiment: Leadership turnover: CFO Suketu Upadhyay is departing immediately and Paul Stellato is named interim CFO; some outlets also reported a CEO exit, which heightens short‑term governance and execution uncertainty. PR Newswire CFO Transition MSN: CEO Exit Report
• Negative Sentiment: Despite the beat, shares slipped (including an early dip in pre‑market trading) — suggesting investors focused on execution risks (salesforce shifts noted in previews) and the management changes rather than the headline beat. Zacks: Premarket Dip

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ZBH. Wall Street Zen lowered shares of Zimmer Biomet from a "buy" rating to a "hold" rating in a research note on Sunday, April 19th. BTIG Research reissued a "neutral" rating on shares of Zimmer Biomet in a research report on Monday, March 23rd. Citigroup restated a "buy" rating on shares of Zimmer Biomet in a report on Wednesday, February 11th. Barclays reduced their target price on shares of Zimmer Biomet from $104.00 to $100.00 and set an "underweight" rating for the company in a research note on Thursday, February 12th. Finally, The Goldman Sachs Group cut Zimmer Biomet from a "neutral" rating to a "sell" rating and set a $93.00 target price for the company. in a report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $105.95.

Zimmer Biomet Price Performance

The stock has a market cap of $16.06 billion, a price-to-earnings ratio of 23.43, a price-to-earnings-growth ratio of 1.87 and a beta of 0.61. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.10 and a current ratio of 1.98. The company has a 50-day simple moving average of $93.52 and a two-hundred day simple moving average of $92.98.

Zimmer Biomet (NYSE:ZBH - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The medical equipment provider reported $2.09 EPS for the quarter, beating the consensus estimate of $1.86 by $0.23. Zimmer Biomet had a return on equity of 12.93% and a net margin of 8.56%.The company had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $2.06 billion. During the same quarter in the prior year, the firm posted $1.81 EPS. The firm's revenue for the quarter was up 9.3% compared to the same quarter last year. Zimmer Biomet has set its FY 2026 guidance at 8.400-8.550 EPS. As a group, equities research analysts forecast that Zimmer Biomet Holdings, Inc. will post 8.39 EPS for the current year.

Zimmer Biomet Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st will be given a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Zimmer Biomet's dividend payout ratio (DPR) is 27.12%.

Insider Buying and Selling at Zimmer Biomet

In other news, SVP Lori Winkler sold 2,650 shares of the company'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 sale, the senior vice president directly owned 10,224 shares of the company's stock, valued at approximately $967,803.84. This represents a 20.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.28% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zimmer Biomet

A number of institutional investors have recently bought and sold shares of the business. Rakuten Investment Management Inc. bought a new position in Zimmer Biomet during the third quarter worth $37,307,000. Sector Gamma AS raised its position in shares of Zimmer Biomet by 28.0% in the third quarter. Sector Gamma AS now owns 113,478 shares of the medical equipment provider's stock valued at $11,178,000 after purchasing an additional 24,847 shares during the period. SG Americas Securities LLC raised its position in shares of Zimmer Biomet by 29.2% in the third quarter. SG Americas Securities LLC now owns 61,110 shares of the medical equipment provider's stock valued at $6,019,000 after purchasing an additional 13,812 shares during the period. Border to Coast Pensions Partnership Ltd lifted its stake in shares of Zimmer Biomet by 6.5% during the 3rd quarter. Border to Coast Pensions Partnership Ltd now owns 360,462 shares of the medical equipment provider's stock worth $35,506,000 after buying an additional 22,104 shares during the last quarter. Finally, National Pension Service boosted its holdings in shares of Zimmer Biomet by 4.5% during the 3rd quarter. National Pension Service now owns 393,476 shares of the medical equipment provider's stock worth $38,757,000 after buying an additional 16,928 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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