The stock of Globus Medical Inc. (NYSE:GMED) increased by $0.66 on Friday to finish at $57.04, up 1.17 percent. The last five days have seen an average of 667,740 shares of common stock traded. 5 times new highs were reached in the current year, with a fall of -$17.23. The average number of shares traded over the last 20 days was 812,745, while the average volume over the last 50 days totaled 786,198.
GMED stock dropped -7.90% since last month. On 08/04/23, the company’s shares reached a one-month low of $55.89. The stock touched a high of $80.04 on 02/03/23, after rallying from a low of $50.92 in 52 weeks. The price of GMED stock has declined by -23.20% or -$17.23 this year, reaching a new high 5 times. Still, the stock price is down -28.74% from the 52-week high.
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Insider Transactions
GMED stock investors should be aware that Globus Medical Inc. (GMED) stock had its last reported insider trading activity 91 days ago on May 15. On May 15, Director Lemaitre Dan sold 43,450 shares at $56.98 each. This transaction resulted in the insider making $2,475,977. On Feb 02, Pfeil Keith W sold 29,167 shares at a price of US$77.57. After the transaction, the insider now owns 0 shares. SVP, GC, Corporate Secretary Huller Kelly had earlier sold 7,500 shares on Dec 01 for $75.00 a share. The transaction was completed for $562,501.
Valuation Metrics
Globus Medical Inc. (GMED) has a trailing price-to-earnings (P/E) ratio of 28.32. Beta for the stock is 1.07. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.16, the price-to-book (PB) ratio of 2.88, and the price-to-cash flow ratio of 46.81.
Financial Health
For the three months ended June 29, Globus Medical Inc.’s quick ratio was 5.60, while its current ratio was 7.80, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 74.20% percent. Globus Medical Inc.’s EBITDA margin for the year ended June 29 was 29.78%, whereas its operating margin stood at 21.50% for the same period. Based on annual data, it had gross profit of $759.12 million and revenue of $1.02 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. GMED’s return on assets (ROA) during the last 12 months has been 9.70%. There was a 9.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 10.90%.
Earnings Surprise
According to Globus Medical Inc.’s quarterly financial report for the quarter that ended June 29, it had $306.38 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $291.62 million, while revenues rose by 9.59% to $276.69 million. It was predicted that Globus Medical Inc.’s quarterly earnings would be $0.63, but it ended up being $0.59, beating the consensus by 6.80%. EBITDA was $84.59 million for the quarter. Equity owned by shareholders amounts to $100.46 million.
Technical Picture
Here’s a quick look at Globus Medical Inc.’s (GMED) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 37.24%, suggesting the stock is Neutral, with a 25.00% historical volatility rate.
The stochastic %K and %D were 10.11% and 11.41% respectively, while the average true range (ATR) was 1.42. Based on the 14-day stochastic reading of 16.45%, the RSI (14) reading is 40.40%. On the 9-day MACD Oscillator, the stock is at -0.89, and the 14-day reading is at -2.23.
Analyst Ratings
In its most recent analyst report, Canaccord Genuity raised its rating on Globus Medical Inc. (NYSE: GMED) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Globus Medical Inc. (GMED) an Hold rating. GMED is a stock that is recommended for selling by 0 brokerage firms, while 10 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 3 others recommend it as a buy.
What is GMED’s price target for the next 12 months?
The current consensus forecast for the stock is between $60.00 and $77.00, with a median target price of $65.00. In analyzing these forecasts, the average price target given by analysts for Globus Medical Inc. (GMED) is $67.18.
