RTW Investments LP Takes Position in Globus Medical, Inc. (NYSE:GMED)

RTW Investments LP purchased a new stake in Globus Medical, Inc. (NYSE:GMED) in the 4th quarter, Holdings Channel.com reports. The firm purchased 972,000 shares of the medical device company’s stock, valued at approximately $80,394,000. Globus Medical makes up 1.2% of RTW Investments LP’s holdings, making the stock its 28th largest position.

Several other hedge funds and other institutional investors have also modified their holdings of GMED. Franklin Resources Inc. acquired a new position in Globus Medical during the 3rd quarter valued at about $3,833,000. Oak Thistle LLC acquired a new stake in shares of Globus Medical in the 4th quarter worth approximately $376,000. Assenagon Asset Management S.A. lifted its stake in shares of Globus Medical by 77.5% in the 4th quarter. Assenagon Asset Management S.A. now owns 95,898 shares of the medical device company’s stock worth $7,932,000 after acquiring an additional 41,875 shares during the period. Park Avenue Securities LLC lifted its stake in shares of Globus Medical by 26.4% in the 4th quarter. Park Avenue Securities LLC now owns 7,405 shares of the medical device company’s stock worth $612,000 after acquiring an additional 1,546 shares during the period. Finally, HB Wealth Management LLC acquired a new stake in shares of Globus Medical in the 4th quarter worth approximately $301,000. 95.16% of the stock is owned by institutional investors and hedge funds.

Globus Medical Stock Performance

GMED opened at $57.76 on Friday. The firm’s 50-day simple moving average is $70.72 and its 200-day simple moving average is $79.43. Globus Medical, Inc. has a twelve month low of $54.48 and a twelve month high of $94.93. The firm has a market cap of $7.94 billion, a price-to-earnings ratio of 77.01, a PEG ratio of 1.61 and a beta of 1.32.

Globus Medical (NYSE:GMED) last issued its quarterly earnings data on Thursday, May 8th. The medical device company reported $0.68 EPS for the quarter, missing analysts’ consensus estimates of $0.74 by ($0.06). Globus Medical had a return on equity of 10.83% and a net margin of 4.09%. The company had revenue of $598.12 million for the quarter, compared to the consensus estimate of $629.74 million. During the same period in the prior year, the company earned $0.72 EPS. The firm’s revenue was down 1.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Globus Medical, Inc. will post 3.44 EPS for the current fiscal year.

Globus Medical announced that its Board of Directors has approved a share repurchase program on Thursday, May 15th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the medical device company to reacquire up to 6.3% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts have recently weighed in on GMED shares. Stifel Nicolaus upped their price target on shares of Globus Medical from $92.00 to $94.00 and gave the stock a “buy” rating in a research note on Friday, February 21st. Truist Financial reduced their price target on shares of Globus Medical from $80.00 to $68.00 and set a “hold” rating for the company in a research note on Monday. StockNews.com raised shares of Globus Medical from a “hold” rating to a “buy” rating in a research note on Monday. Barclays upped their price target on shares of Globus Medical from $100.00 to $103.00 and gave the stock an “overweight” rating in a research note on Monday, February 24th. Finally, Wells Fargo & Company reduced their price target on shares of Globus Medical from $95.00 to $93.00 and set an “overweight” rating for the company in a research note on Friday, February 21st. Three research analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. According to MarketBeat.com, Globus Medical currently has an average rating of “Moderate Buy” and an average price target of $94.00.

Globus Medical Company Profile

Globus Medical, Inc, a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives.