Globus Medical (GMED) Receives a Hold from Oppenheimer


Oppenheimer analyst Steven Lichtman maintained a Hold rating on Globus Medical (GMED) today and set a price target of $52. The company’s shares closed yesterday at $45.96.

Lichtman commented:

“Globus’ 1Q19 sales were $182.9M (+5.7% in constant currency), below our/ consensus $186.7M/ $186.6M estimates. Versus our estimates, U.S. core spine was about $4M lower (~$3M from lower biologics sales owing to FDA warning letter disruption) and ~$4M in lower Excelsius robot sales. On the latter, management noted longer sales cycles with new/pending competitive launches leading to increased evaluation time. International was ~$3M better than our thinking on continued penetration in Japan and some distributor stocking. EBITDA margin was lower at 31.1% versus our 34.8%E on the lower sales and non-recurring expenses (including legal). GMED reiterated guidance for 2019: sales/EPS at $770M (+~8%)/$1.72, with management noting the underlying strength in core spine US/OUS as offsets to the lower 1Q.”

According to TipRanks.com, Lichtman has currently no stars on a ranking scale of 0-5 stars, with an average return of -4.8% and a 45.0% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tandem Diabetes Care Inc, and Boston Scientific Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Globus Medical with a $55.67 average price target.

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Based on Globus Medical’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $36.75 million. In comparison, last year the company had a net profit of $39.54 million.

Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2019, Anthony L. Williams, the President of GMED sold 212,082 shares for a total of $9,931,488.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Globus Medical, Inc. operates as a medical device company that develops and commercializes healthcare solutions. The firm engages in developing products that promote healing in patients with musculoskeletal disorders. It classifies products into Innovative Fusion and Disruptive Technology.

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