Is Edwards Lifesciences Corporation (EW) A Good Investment?

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RTX Stock
RTX Stock

Edwards Lifesciences Corporation (NYSE:EW) finished Wednesday with a subtraction of -$1.97 to close at $85.22, a downside of -2.26 percent. An average of 3,256,840 shares of common stock have been traded in the last five days. There was a fall of -$8.90 in the past week, and it reached a new high 13 times over the past 12 months. The last 20 days have seen an average of 2,787,290 shares traded, while the 50-day average volume stands at 2,570,586.

EW stock has decreased by -11.11% in the last month. The company shares reached their 1-month lowest point of $85.18 on 09/21/22. With the stock rallying to its 52-week high on 04/21/22, shares of the company touched a low of $85.58 and a high of $131.73 in 52 weeks. It has reached a new high 3 times so far this year and lost -34.22% or -$44.33 in price. In spite of this, the price is down -35.31% from the 52-week high.


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Insider Transactions

14 days have passed since Edwards Lifesciences Corporation (EW) last reported insider trading activity. BOBO DONALD E JR, who is CVP,Strategy/Corp Development, most recently acquired $6,725 shares at $90.94 per share on Sep 08. In this transaction, the insider spent $611,572. CVP, TAVR, Wood Larry L, disposed of 7,242 shares at a price of $89.00 on Sep 06. The insider now owns more than $644,538 worth of shares. Prior to that, Chairman & CEO MUSSALLEM MICHAEL A went on to Sale 19,875 shares at $104.74 each on Aug 15. An amount of $2,081,772 was transacted.

Valuation Metrics

Edwards Lifesciences Corporation (EW) has a trailing price-to-earnings (P/E) ratio of 36.88. The stock’s beta is 1.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 10.03, the price-to-book (PB) ratio at 8.90, and the price-to-cash flow ratio at 42.46.

Financial Health

The quick ratio of Edwards Lifesciences Corporation for the three months ended June 29 was 2.60, and the current ratio was 3.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.10 and a total debt to equity ratio of 0.10 for the quarter ending June 29. Its gross profit as reported stood at $3.98 billion compared to revenue of $5.23 billion.

Earnings Surprise

For the three-month period that ended June 29, Edwards Lifesciences Corporation had $317.7 million in cash and short-term investments compared to $596.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $406.4 million in the quarter, while revenues of $373.6 million were shrunk -20.45%. The analyst consensus anticipated Edwards Lifesciences Corporation’s latest quarter earnings to come in at $0.64 per share, but it turned out to be $0.63, a -1.60% surprise. For the quarter, EBITDA amounted to $493.6 million. Shareholders own equity worth $619.94 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Edwards Lifesciences Corporation (EW) price momentum. RSI 9-day as of the close on 21 September was 25.43%, suggesting the stock is oversold, with historical volatility in this time frame at 29.89%.

As of today, EW’s price is $89.89 -9.46% or -$8.90 from its 5-day moving average. EW is currently trading -9.48% lower than its 20-day SMA and -22.36% lower than its 100-day SMA. However, the stock’s current price level is -11.54% below the SMA50 and -21.44% below the SMA200.

The stochastic %K and %D were 5.70% and 23.68%, respectively, and the average true range (ATR) was 3.09. With the 14-day stochastic at 0.30% and the average true range at 2.98, the RSI (14) stands at 31.00%. The stock has reached -5.42 on the 9-day MACD Oscillator while the 14-day reading was at -4.91.

Analyst Ratings

Canaccord Genuity downgraded Edwards Lifesciences Corporation (NYSE: EW) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Edwards Lifesciences Corporation (EW) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell EW, while 6 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 15 others rate it as a “buy”.

What is EW’s price target for the next 12 months?

Analysts predict a range of price targets between $97.00 and $130.00, with a median target of $119.00. Taking a look at these predictions, the average price target given by analysts for Edwards Lifesciences Corporation (EW) stock is $116.58.

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