Boston Scientific Corporation (NYSE: BSX) stock fell -1.16% on Friday to $39.30 against a previous-day closing price of $39.76. With 4.66 million shares changed hands, the volume of the stock remained lighter than its average volume of 6.81 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $39.70 whereas the lowest price it dropped to was $39.13. The 52-week range on BSX shows that it touched its highest point at $47.49 and its lowest point at $34.98 during that stretch. It currently has a 1-year price target of $48.55. Beta for the stock currently stands at 0.84.
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 BSX was down-trending over the past week, with a drop of -6.87%, but this was down by -3.82% over a month. Three-month performance surged to 6.39% while six-month performance fell -7.09%. The stock lost -11.31% in the past year, while it has lost -7.49% so far this year. A look at the trailing 12-month EPS for BSX yields 0.58 with Next year EPS estimates of 1.98. For the next quarter, that number is 0.44. This implies an EPS growth rate of 946.40% for this year and 12.45% for next year. EPS is expected to grow by 10.74% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.20%.
Float and Shares Shorts:
At present, 1.43 billion BSX shares are outstanding with a float of 1.43 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 16.04 million, which was 1.12% higher than short shares on Jun 14, 2022. In addition to Mr. Michael F. Mahoney as the firm’s Chairman, Pres & CEO, Mr. Daniel J. Brennan serves as its Exec. VP & CFO.
Through their ownership of 93.01% of BSX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.11% of BSX, in contrast to 41.24% held by mutual funds. Shares owned by individuals account for 1.42%. As the largest shareholder in BSX with 7.65% of the stake, The Vanguard Group, Inc. holds 109,447,862 shares worth 109,447,862. A second-largest stockholder of BSX, Massachusetts Financial Services, holds 83,605,616 shares, controlling over 5.84% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BSX, holding 68,767,275 shares or 4.80% stake. With a 2.96% stake in BSX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 42,327,019 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of BSX stock, is the second-largest Mutual Fund holder. It holds 31,904,634 shares valued at 1.29 billion. Vanguard Health Care Fund holds 2.17% of the stake in BSX, owning 31,111,149 shares worth 1.25 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BSX since 27 analysts follow the stock currently. There are 21 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BSX analysts setting a high price target of $53.00 and a low target of $43.00, the average target price over the next 12 months is $48.47. Based on these targets, BSX could surge 34.86% to reach the target high and rise by 9.41% to reach the target low. Reaching the average price target will result in a growth of 23.33% 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. BSX will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $1.79 being high and $1.75 being low. For BSX, this leads to a yearly average estimate of $1.76. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Boston Scientific Corporation surprised analysts by $0.02 when it reported $0.44 EPS against a consensus estimate of $0.42. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.45 and the low estimate is $0.43. The average estimate for the next quarter is thus $0.44.
Summary of Insider Activity:
Insiders traded BSX stock several times over the past three months with 5 Buys and 9 Sells. In these transactions, 131,680 shares were bought while 186,811 shares were sold. The number of buy transactions has increased to 130 while that of sell transactions has risen to 148 over the past year. The total number of shares bought during that period was 1,144,841 while 1,065,170 shares were sold.