Orthofix Medical (NASDAQ:OFIX) Shares Down 5.8% Following Weak Earnings

Orthofix Medical Inc. (NASDAQ:OFIX) shares dropped 5.8% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $12.39 and last traded at $12.7950. Approximately 185,213 shares traded hands during trading, a decline of 17% from the average daily volume of 223,713 shares. The stock had previously closed at $13.59.

The medical device company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.50). Orthofix Medical had a negative net margin of 14.56% and a negative return on equity of 25.59%. The company had revenue of $219.91 million during the quarter, compared to analyst estimates of $218.72 million.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Barrington Research reiterated an “outperform” rating and issued a $18.00 price objective on shares of Orthofix Medical in a research note on Tuesday, February 17th. TD Cowen initiated coverage on shares of Orthofix Medical in a research report on Tuesday, January 27th. They issued a “hold” rating and a $14.00 price target for the company. Stifel Nicolaus initiated coverage on Orthofix Medical in a report on Tuesday, October 28th. They issued a “buy” rating and a $22.00 price objective for the company. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Orthofix Medical in a research report on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $20.00.

Insider Activity

In other Orthofix Medical news, CEO Massimo Calafiore sold 9,797 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $15.21, for a total value of $149,012.37. Following the completion of the sale, the chief executive officer directly owned 217,237 shares in the company, valued at $3,304,174.77. This trade represents a 4.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Julie Andrews sold 4,873 shares of the stock in a transaction on Friday, January 16th. The shares were sold at an average price of $14.38, for a total value of $70,073.74. Following the sale, the chief financial officer owned 58,039 shares of the company’s stock, valued at approximately $834,600.82. This represents a 7.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 24,270 shares of company stock worth $370,958. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Orthofix Medical

Several institutional investors have recently added to or reduced their stakes in the business. CWM LLC raised its stake in Orthofix Medical by 99.0% in the 3rd quarter. CWM LLC now owns 1,920 shares of the medical device company’s stock worth $28,000 after acquiring an additional 955 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in shares of Orthofix Medical during the third quarter worth about $30,000. Kestra Advisory Services LLC purchased a new position in Orthofix Medical during the 4th quarter worth approximately $56,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Orthofix Medical during the 2nd quarter valued at approximately $147,000. Finally, Mackenzie Financial Corp purchased a new stake in shares of Orthofix Medical in the 3rd quarter valued at $148,000. Institutional investors and hedge funds own 89.76% of the company’s stock.

Orthofix Medical Price Performance

The company has a quick ratio of 1.38, a current ratio of 2.47 and a debt-to-equity ratio of 0.39. The stock’s 50 day moving average price is $14.27 and its two-hundred day moving average price is $14.72. The stock has a market cap of $504.11 million, a price-to-earnings ratio of -4.20 and a beta of 0.78.

Orthofix Medical Company Profile

Orthofix Medical Inc (NASDAQ: OFIX) is a global medical device company focused on the design and development of innovative orthopedic and spinal solutions. The company’s core business is divided into two segments: spine and orthopedics. In the spine segment, Orthofix offers a range of titanium implants, biologics and portable bone growth stimulation devices designed to support spinal fusion, deformity correction and minimally invasive procedures. Its orthopedic segment encompasses products for fracture fixation, external fixation systems, trauma care and sports medicine, providing surgeons with implantable devices and instruments for complex bone reconstruction and healing.

Orthofix’s product portfolio includes strut systems, bone growth stimulators, interbody fusion devices and fixation hardware that address various indications such as degenerative disc disease, spinal deformities, non-unions and long-bone fractures.