Zimmer Biomet (ZBH) Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Zimmer Biomet (NYSE:ZBH) from a hold rating to a sell rating in a report issued on Saturday, Zacks.com reports.

According to Zacks, “We believe escalating costs and expenses are denting the adjusted operating margin for Zimmer Biomet. Adverse currency movements continue to be a concern. Declining dental sales at CER also disappoint. On a positive note, the company witnessed strength in the Asia Pacific and EMEA regions as well as in the Spine & CMF business. Supported by focus on priority areas like quality remediation, supply recovery efforts and product launches, the company has again reported strong top-line numbers for its S.E.T segment. We are also upbeat about the company’s receipt of FDA 510(k) for the ROSA Knee System. Zimmer Biomet has outperformed its industry in the past six months.”

ZBH has been the subject of a number of other research reports. SunTrust Banks upped their price target on shares of Zimmer Biomet to $135.00 and gave the stock a buy rating in a report on Tuesday, February 5th. Citigroup raised shares of Zimmer Biomet from a neutral rating to a buy rating and increased their price objective for the company from $122.00 to $127.00 in a research note on Wednesday, January 2nd. Deutsche Bank initiated coverage on shares of Zimmer Biomet in a research note on Wednesday, January 2nd. They issued a hold rating and a $108.00 price objective for the company. Morgan Stanley dropped their price objective on shares of Zimmer Biomet from $149.00 to $126.00 and set an overweight rating for the company in a research note on Wednesday, January 2nd. Finally, JPMorgan Chase & Co. downgraded shares of Zimmer Biomet from an overweight rating to a neutral rating and dropped their price objective for the company from $140.00 to $118.00 in a research note on Wednesday, December 19th. Four equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and thirteen have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $129.95.

Shares of Zimmer Biomet stock opened at $125.52 on Friday. Zimmer Biomet has a 1-year low of $96.99 and a 1-year high of $134.55. The company has a quick ratio of 0.90, a current ratio of 1.83 and a debt-to-equity ratio of 0.75. The company has a market cap of $26.17 billion, a PE ratio of 16.43, a PEG ratio of 2.25 and a beta of 1.23.

Zimmer Biomet (NYSE:ZBH) last issued its quarterly earnings results on Friday, February 1st. The medical equipment provider reported $2.18 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $2.18. Zimmer Biomet had a negative net margin of 4.78% and a positive return on equity of 13.17%. The company had revenue of $2.07 billion during the quarter, compared to the consensus estimate of $2.06 billion. During the same quarter in the prior year, the firm posted $2.10 EPS. The firm’s quarterly revenue was up .1% on a year-over-year basis. On average, research analysts forecast that Zimmer Biomet will post 7.81 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Friday, March 29th will be paid a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 0.76%. The ex-dividend date is Thursday, March 28th. Zimmer Biomet’s payout ratio is currently 12.57%.

In other Zimmer Biomet news, Director Syed A. Jafry purchased 1,925 shares of the company’s stock in a transaction dated Friday, March 1st. The stock was purchased at an average price of $125.52 per share, with a total value of $241,626.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Arthur J. Higgins purchased 500 shares of the company’s stock in a transaction dated Friday, February 15th. The shares were acquired at an average cost of $123.28 per share, with a total value of $61,640.00. Following the purchase, the director now directly owns 2,400 shares of the company’s stock, valued at approximately $295,872. The disclosure for this purchase can be found here. Insiders have bought 12,860 shares of company stock valued at $1,548,994 in the last ninety days. Insiders own 0.72% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in ZBH. Legacy Financial Advisors Inc. raised its stake in shares of Zimmer Biomet by 176.4% during the fourth quarter. Legacy Financial Advisors Inc. now owns 351 shares of the medical equipment provider’s stock valued at $36,000 after acquiring an additional 224 shares during the last quarter. Clean Yield Group acquired a new stake in shares of Zimmer Biomet during the fourth quarter worth $37,000. Doyle Wealth Management acquired a new stake in shares of Zimmer Biomet during the fourth quarter worth $41,000. Pinnacle Bank acquired a new stake in shares of Zimmer Biomet during the fourth quarter worth $45,000. Finally, Essex Savings Bank acquired a new stake in shares of Zimmer Biomet during the fourth quarter worth $62,000. 89.82% of the stock is owned by hedge funds and other institutional investors.

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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