How does Globus Medical Inc. (GMED) change from a tortoise to a hare?

Globus Medical Inc. (NYSE: GMED) stock fell -1.42% on Friday to $58.85 against a previous-day closing price of $59.70. With 1.15 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.7 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $59.89 whereas the lowest price it dropped to was $58.81. The 52-week range on GMED shows that it touched its highest point at $84.23 and its lowest point at $52.60 during that stretch. It currently has a 1-year price target of $73.08. Beta for the stock currently stands at 1.14.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GMED was up-trending over the past week, with a rise of 0.10%, but this was up by 3.68% over a month. Three-month performance dropped to -13.79% while six-month performance fell -11.89%. The stock lost -27.01% in the past year, while it has lost -18.49% so far this year. A look at the trailing 12-month EPS for GMED yields 1.36 with Next year EPS estimates of 2.40. For the next quarter, that number is 0.53. This implies an EPS growth rate of 42.10% for this year and 14.51% for next year. EPS is expected to grow by 7.27% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.90%.

Float and Shares Shorts:

At present, 101.60 million GMED shares are outstanding with a float of 78.49 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.97 million, which was 4.88% higher than short shares on Jun 14, 2022. In addition to Mr. David C. Paul as the firm’s Co-Founder & Exec. Chairman, Mr. Daniel T. Scavilla serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 72.50% of GMED’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.76% of GMED, in contrast to 35.29% held by mutual funds. Shares owned by individuals account for 20.99%. As the largest shareholder in GMED with 9.22% of the stake, The Vanguard Group, Inc. holds 7,308,035 shares worth 7,308,035. A second-largest stockholder of GMED, BlackRock Fund Advisors, holds 6,586,199 shares, controlling over 8.31% of the firm’s shares. Janus Henderson Investors US LLC is the third largest shareholder in GMED, holding 6,578,673 shares or 8.30% stake. With a 2.95% stake in GMED, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,342,350 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.88% of GMED stock, is the second-largest Mutual Fund holder. It holds 2,282,385 shares valued at 128.13 million. Vanguard Small Cap Index Fund holds 2.53% of the stake in GMED, owning 2,004,118 shares worth 112.51 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GMED since 14 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GMED analysts setting a high price target of $90.00 and a low target of $62.00, the average target price over the next 12 months is $73.08. Based on these targets, GMED could surge 52.93% to reach the target high and rise by 5.35% to reach the target low. Reaching the average price target will result in a growth of 24.18% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GMED will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $2.12 being high and $2.03 being low. For GMED, this leads to a yearly average estimate of $2.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Globus Medical Inc. reported $0.56 EPS against a consensus estimate of $0.56. The surprise factor in the prior quarter was -$0.05. Based on analyst estimates, the high estimate for the next quarter is $0.57 and the low estimate is $0.51. The average estimate for the next quarter is thus $0.53.

Summary of Insider Activity:

Insiders traded GMED stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 6 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 26,667 while 60,167 shares were sold.

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