Globus Medical (NYSE:GMED) Sets New 1-Year High on Better-Than-Expected Earnings

Globus Medical, Inc. (NYSE:GMED)’s share price hit a new 52-week high on Tuesday following a better than expected earnings announcement. The stock traded as high as $76.13 and last traded at $75.91, with a volume of 128286 shares changing hands. The stock had previously closed at $74.72.

The medical device company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.18. The company had revenue of $625.71 million for the quarter, compared to analysts’ expectations of $604.69 million. Globus Medical had a net margin of 1.82% and a return on equity of 8.70%. Globus Medical’s revenue was up 63.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.57 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Piper Sandler boosted their price objective on shares of Globus Medical from $80.00 to $100.00 and gave the stock an “overweight” rating in a research report on Wednesday. Bank of America upped their price objective on shares of Globus Medical from $55.00 to $80.00 and gave the company an “underperform” rating in a research note on Wednesday. Truist Financial upped their price objective on shares of Globus Medical from $78.00 to $79.00 and gave the company a “hold” rating in a research note on Wednesday, August 7th. BTIG Research upped their price objective on shares of Globus Medical from $77.00 to $78.00 and gave the company a “buy” rating in a research note on Monday, October 14th. Finally, Barclays upped their price objective on shares of Globus Medical from $85.00 to $93.00 and gave the company an “overweight” rating in a research note on Thursday, August 8th. One analyst has rated the stock with a sell rating, three have issued a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $87.09.

Insiders Place Their Bets

In other Globus Medical news, Director David D. Davidar sold 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 16th. The stock was sold at an average price of $75.04, for a total value of $2,251,200.00. Following the completion of the transaction, the director now owns 536,275 shares in the company, valued at $40,242,076. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, Director Ann D. Rhoads sold 15,000 shares of the firm’s stock in a transaction on Friday, September 13th. The stock was sold at an average price of $70.36, for a total transaction of $1,055,400.00. Following the transaction, the director now directly owns 42,884 shares in the company, valued at $3,017,318.24. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David D. Davidar sold 30,000 shares of the firm’s stock in a transaction on Wednesday, October 16th. The stock was sold at an average price of $75.04, for a total value of $2,251,200.00. Following the transaction, the director now owns 536,275 shares in the company, valued at $40,242,076. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 18.54% of the stock is owned by company insiders.

Hedge Funds Weigh In On Globus Medical

Several large investors have recently added to or reduced their stakes in GMED. Select Equity Group L.P. acquired a new stake in Globus Medical in the second quarter worth $91,711,000. Millennium Management LLC increased its holdings in shares of Globus Medical by 1,171.5% during the second quarter. Millennium Management LLC now owns 1,363,834 shares of the medical device company’s stock valued at $93,409,000 after purchasing an additional 1,256,570 shares during the period. Magnetar Financial LLC increased its holdings in shares of Globus Medical by 198.6% during the first quarter. Magnetar Financial LLC now owns 1,689,287 shares of the medical device company’s stock valued at $90,613,000 after purchasing an additional 1,123,540 shares during the period. Motley Fool Asset Management LLC increased its holdings in shares of Globus Medical by 1,263.7% during the first quarter. Motley Fool Asset Management LLC now owns 848,164 shares of the medical device company’s stock valued at $45,496,000 after purchasing an additional 785,970 shares during the period. Finally, Burgundy Asset Management Ltd. increased its holdings in shares of Globus Medical by 46.1% during the first quarter. Burgundy Asset Management Ltd. now owns 2,479,837 shares of the medical device company’s stock valued at $133,018,000 after purchasing an additional 782,285 shares during the period. 95.16% of the stock is currently owned by institutional investors.

Globus Medical Price Performance

The company has a market capitalization of $11.20 billion, a price-to-earnings ratio of 275.67, a price-to-earnings-growth ratio of 2.06 and a beta of 1.17. The business has a fifty day moving average price of $71.92 and a 200 day moving average price of $68.16.

Globus Medical Company Profile

Globus Medical, Inc, a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives.