Zimmer Biomet (ZBH) Lowered to Buy at Needham & Company LLC

Needham & Company LLC lowered shares of Zimmer Biomet (NYSE:ZBH) from a strong-buy rating to a buy rating in a report published on Monday, Marketbeat Ratings reports. The brokerage currently has $150.00 price objective on the medical equipment provider’s stock.

“We are downgrading ZBH to Buy from Strong Buy. Our downgrade is due to reduced growth potential given slower orthopedic market growth, the need for portfolio management to drive higher revenue growth (which we expect to take significant time), ZBH’s need for reinvestment which is likely to weigh on its margins, and ZBH’s valuation.”,” Needham & Company LLC’s analyst wrote.

ZBH has been the subject of several other reports. ValuEngine downgraded Zimmer Biomet from a hold rating to a sell rating in a research note on Thursday, June 7th. Raymond James increased their price objective on Zimmer Biomet from $135.00 to $145.00 and gave the stock an outperform rating in a research note on Monday, July 30th. Zacks Investment Research raised Zimmer Biomet from a sell rating to a hold rating in a research note on Sunday, July 8th. JMP Securities lowered their price objective on Zimmer Biomet from $145.00 to $133.00 and set a market outperform rating for the company in a research note on Friday, April 27th. Finally, Robert W. Baird increased their price objective on Zimmer Biomet from $121.00 to $132.00 and gave the stock a neutral rating in a research note on Monday, July 30th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and sixteen have issued a buy rating to the company. The stock currently has an average rating of Buy and a consensus target price of $135.43.

ZBH stock traded down $0.11 during trading on Monday, reaching $122.34. 11,827 shares of the stock were exchanged, compared to its average volume of 1,251,373. Zimmer Biomet has a twelve month low of $104.28 and a twelve month high of $129.34. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.25 and a current ratio of 2.41. The company has a market cap of $24.94 billion, a P/E ratio of 15.25, a price-to-earnings-growth ratio of 2.23 and a beta of 1.13.

Zimmer Biomet (NYSE:ZBH) last posted its quarterly earnings results on Friday, July 27th. The medical equipment provider reported $1.92 earnings per share for the quarter, topping analysts’ consensus estimates of $1.88 by $0.04. Zimmer Biomet had a return on equity of 13.53% and a net margin of 21.67%. The business had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.99 billion. During the same period in the prior year, the business earned $2.08 EPS. The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. equities analysts predict that Zimmer Biomet will post 7.67 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 31st. Stockholders of record on Friday, June 29th were issued a $0.24 dividend. This represents a $0.96 annualized dividend and a dividend yield of 0.78%. The ex-dividend date was Thursday, June 28th. Zimmer Biomet’s dividend payout ratio is presently 11.96%.

In other Zimmer Biomet news, insider Katarzyna Mazur-Hofsaess sold 8,765 shares of the stock in a transaction on Tuesday, May 22nd. The stock was sold at an average price of $113.61, for a total transaction of $995,791.65. Following the completion of the transaction, the insider now directly owns 25,447 shares of the company’s stock, valued at $2,891,033.67. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Tony W. Collins sold 2,778 shares of the stock in a transaction on Tuesday, July 31st. The shares were sold at an average price of $125.77, for a total value of $349,389.06. The disclosure for this sale can be found here. Corporate insiders own 0.71% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in ZBH. Bedel Financial Consulting Inc. bought a new position in Zimmer Biomet during the first quarter valued at $111,000. Migdal Insurance & Financial Holdings Ltd. boosted its holdings in shares of Zimmer Biomet by 5,200.0% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,007 shares of the medical equipment provider’s stock worth $112,000 after acquiring an additional 988 shares during the period. Summit Trail Advisors LLC boosted its holdings in shares of Zimmer Biomet by 8,836.9% in the first quarter. Summit Trail Advisors LLC now owns 127,887 shares of the medical equipment provider’s stock worth $128,000 after acquiring an additional 126,456 shares during the period. Massey Quick Simon & CO. LLC boosted its holdings in shares of Zimmer Biomet by 100.0% in the first quarter. Massey Quick Simon & CO. LLC now owns 1,200 shares of the medical equipment provider’s stock worth $131,000 after acquiring an additional 600 shares during the period. Finally, Adviser Investments LLC bought a new position in shares of Zimmer Biomet in the first quarter worth $144,000. 87.11% of the stock is owned by institutional investors and hedge funds.

Zimmer Biomet Company Profile

Zimmer Biomet Holdings, Inc, together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental.

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