There is no way Edwards Lifesciences Corporation (EW) can keep these numbers up

Edwards Lifesciences Corporation (NYSE: EW) stock fell -3.68% on Tuesday to $77.11 against a previous-day closing price of $80.06. With 2.43 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.25 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $80.11 whereas the lowest price it dropped to was $77.03. The 52-week range on EW shows that it touched its highest point at $131.10 and its lowest point at $67.13 during that stretch. It currently has a 1-year price target of $91.09. Beta for the stock currently stands at 1.01.

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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 EW was down-trending over the past week, with a drop of -2.22%, but this was up by 3.14% over a month. Three-month performance dropped to -9.08% while six-month performance fell -24.47%. The stock lost -31.55% in the past year, while it has gained 3.35% so far this year. A look at the trailing 12-month EPS for EW yields 2.32 with Next year EPS estimates of 2.50. For the next quarter, that number is 0.61. This implies an EPS growth rate of 82.80% for this year and 1.87% for next year. EPS is expected to grow by 11.05% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.30%.

Float and Shares Shorts:

At present, 619.80 million EW shares are outstanding with a float of 612.90 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.45 million, which was 1.20% higher than short shares on Sep 14, 2022. In addition to Mr. Michael A. Mussallem as the firm’s Chairman & CEO, Mr. Scott B. Ullem serves as its Corp. VP & CFO.

Institutional Ownership:

Through their ownership of 84.67% of EW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.77% of EW, in contrast to 37.03% held by mutual funds. Shares owned by individuals account for 1.12%. As the largest shareholder in EW with 7.82% of the stake, The Vanguard Group, Inc. holds 48,354,082 shares worth 48,354,082. A second-largest stockholder of EW, BlackRock Fund Advisors, holds 31,611,698 shares, controlling over 5.11% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in EW, holding 26,807,322 shares or 4.34% stake. With a 3.04% stake in EW, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 18,809,167 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.31% of EW stock, is the second-largest Mutual Fund holder. It holds 14,291,370 shares valued at 1.07 billion. Vanguard Health Care Fund holds 1.48% of the stake in EW, owning 9,131,833 shares worth 681.33 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EW since 28 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 3 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 EW analysts setting a high price target of $100.00 and a low target of $68.00, the average target price over the next 12 months is $88.76. Based on these targets, EW could surge 29.68% to reach the target high and fall by -11.81% to reach the target low. Reaching the average price target will result in a growth of 15.11% 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. EW will report FY 2022 earnings on 02/01/2024. Analysts have provided yearly estimates in a range of $2.50 being high and $2.42 being low. For EW, this leads to a yearly average estimate of $2.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Edwards Lifesciences Corporation surprised analysts by -$0.01 when it reported $0.61 EPS against a consensus estimate of $0.62. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $0.63 and the low estimate is $0.57. The average estimate for the next quarter is thus $0.61.

Summary of Insider Activity:

Insiders traded EW stock several times over the past three months with 11 Buys and 16 Sells. In these transactions, 120,403 shares were bought while 101,403 shares were sold. The number of buy transactions has increased to 94 while that of sell transactions has risen to 159 over the past year. The total number of shares bought during that period was 1,136,924 while 891,791 shares were sold.

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