Globus Medical (NYSE:GMED) Reaches New 1-Year High on Strong Earnings

Globus Medical, Inc. (NYSE:GMED) hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $64.73 and last traded at $63.20, with a volume of 2360412 shares. The stock had previously closed at $51.36.

The medical device company reported $0.72 EPS for the quarter, topping the consensus estimate of $0.55 by $0.17. Globus Medical had a return on equity of 8.82% and a net margin of 7.83%. The business had revenue of $606.67 million during the quarter, compared to analysts’ expectations of $586.82 million. The firm’s revenue was up 119.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.53 earnings per share.

Analysts Set New Price Targets

Several equities research analysts have weighed in on GMED shares. Needham & Company LLC reaffirmed a “hold” rating on shares of Globus Medical in a research note on Wednesday. BTIG Research raised Globus Medical from a “neutral” rating to a “buy” rating and set a $60.00 target price for the company in a research report on Monday, March 18th. Stifel Nicolaus raised their price objective on Globus Medical from $64.00 to $70.00 and gave the company a “buy” rating in a research note on Wednesday. Truist Financial upped their target price on Globus Medical from $58.00 to $60.00 and gave the stock a “hold” rating in a research report on Wednesday, February 21st. Finally, Royal Bank of Canada reissued an “outperform” rating and issued a $70.00 price target on shares of Globus Medical in a research report on Thursday, January 11th. Five analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, Globus Medical has an average rating of “Moderate Buy” and a consensus price target of $67.00.

Insider Activity

In other news, Director Leslie V. Norwalk sold 10,590 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $51.99, for a total value of $550,574.10. Following the completion of the transaction, the director now directly owns 17,419 shares of the company’s stock, valued at $905,613.81. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 24.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Globus Medical

A number of hedge funds and other institutional investors have recently made changes to their positions in GMED. Vanguard Group Inc. grew its holdings in Globus Medical by 49.7% during the third quarter. Vanguard Group Inc. now owns 11,245,502 shares of the medical device company’s stock valued at $558,339,000 after purchasing an additional 3,732,959 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in Globus Medical by 16.3% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 1,010,932 shares of the medical device company’s stock worth $53,873,000 after acquiring an additional 141,492 shares during the last quarter. SG Americas Securities LLC lifted its holdings in Globus Medical by 854.5% during the fourth quarter. SG Americas Securities LLC now owns 160,338 shares of the medical device company’s stock valued at $8,544,000 after purchasing an additional 143,540 shares during the last quarter. Leeward Investments LLC MA boosted its position in Globus Medical by 14.5% during the fourth quarter. Leeward Investments LLC MA now owns 174,141 shares of the medical device company’s stock worth $9,280,000 after purchasing an additional 22,022 shares during the period. Finally, Sector Gamma AS purchased a new position in shares of Globus Medical in the third quarter worth about $11,014,000. 95.16% of the stock is owned by hedge funds and other institutional investors.

Globus Medical Trading Up 24.7 %

The company has a market cap of $8.67 billion, a P/E ratio of 54.19, a price-to-earnings-growth ratio of 1.53 and a beta of 1.11. The company has a quick ratio of 2.72, a current ratio of 4.88 and a debt-to-equity ratio of 0.10. The firm’s 50-day moving average price is $52.36 and its 200-day moving average price is $51.19.

About Globus Medical

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.