Edwards Lifesciences Corporation (NYSE: EW) stock jumped 1.16% on Thursday to $74.02 against a previous-day closing price of $73.17. With 2.81 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.25 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $74.60 whereas the lowest price it dropped to was $73.08. The 52-week range on EW shows that it touched its highest point at $98.35 and its lowest point at $67.13 during that stretch. It currently has a 1-year price target of $96.74. Beta for the stock currently stands at 1.04.
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 -2.72%, but this was down by -7.31% over a month. Three-month performance dropped to -18.24% while six-month performance fell -6.87%. The stock lost -21.49% in the past year, while it has lost -0.79% so far this year. A look at the trailing 12-month EPS for EW yields 2.26 with Next year EPS estimates of 2.88. For the next quarter, that number is 0.59. This implies an EPS growth rate of 2.40% for this year and 13.15% for next year. EPS is expected to grow by 9.67% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.50%.
Float and Shares Shorts:
At present, 606.90 million EW shares are outstanding with a float of 602.73 million shares on hand for trading. On Aug 30, 2023, short shares totaled 10.75 million, which was 1.77% higher than short shares on Jul 30, 2023. In addition to Mr. Bernard J. Zovighian as the firm’s CEO & Director, Mr. Scott B. Ullem serves as its Corp. VP & CFO.
Through their ownership of 85.59% of EW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.61% of EW, in contrast to 37.44% held by mutual funds. Shares owned by individuals account for 1.16%. As the largest shareholder in EW with 8.05% of the stake, The Vanguard Group, Inc. holds 48,780,118 shares worth 48,780,118. A second-largest stockholder of EW, BlackRock Fund Advisors, holds 31,257,634 shares, controlling over 5.16% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in EW, holding 27,053,304 shares or 4.46% stake. With a 3.12% stake in EW, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 18,887,666 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.39% of EW stock, is the second-largest Mutual Fund holder. It holds 14,515,454 shares valued at 1.19 billion. Vanguard Health Care Fund holds 1.59% of the stake in EW, owning 9,662,088 shares worth 792.97 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, EW reported revenue of $1.37B and operating income of $444.70M. The EBITDA in the recently reported quarter was $429.90M and diluted EPS was $0.65.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EW since 0 analysts follow the stock currently. 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 $110.00 and a low target of $75.00, the average target price over the next 12 months is $96.88. Based on these targets, EW could surge 48.61% to reach the target high and rise by 1.32% to reach the target low. Reaching the average price target will result in a growth of 30.88% 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.
Summary of Insider Activity:
Insiders traded EW stock several times over the past three months with 9 Buys and 13 Sells. In these transactions, 97,929 shares were bought while 99,006 shares were sold. The number of buy transactions has increased to 86 while that of sell transactions has risen to 117 over the past year. The total number of shares bought during that period was 1,046,655 while 863,134 shares were sold.