Zimmer Biomet (ZBH) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research lowered shares of Zimmer Biomet (NYSE:ZBH) from a hold rating to a sell rating in a report released on Monday morning.

According to Zacks, “In the past three months, Zimmer Biomet has been observed to underperform its industry. The year-over-year decline in earnings and revenues in the last reported quarter made investors jittery.  Declining sales at Knees, Hips and other segments at CER were a major disappointment. According to the company, slower pace of supply recovery and sales recapture related to major brands within the company’s Knee, Hip and S.E.T. segments marred the quarterly performance. Also, escalating costs and expenses impacted margins.  On the bright side, the company’s consistent efforts in product and renovation through research and development raise hopes. We are optimistic about synergies from the LDR buyout as well. We are also impressed by the strategic and financial goals which the combined entity expects to reach.”

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A number of other equities research analysts have also recently commented on the company. ValuEngine cut Zimmer Biomet from a buy rating to a hold rating in a research note on Friday, March 23rd. Robert W. Baird cut Zimmer Biomet from an outperform rating to a neutral rating in a research note on Friday, March 23rd. Evercore ISI initiated coverage on Zimmer Biomet in a research note on Monday, April 2nd. They issued an in-line rating and a $115.00 price objective for the company. Morgan Stanley reduced their price objective on Zimmer Biomet from $148.00 to $140.00 and set an overweight rating for the company in a research note on Friday, April 27th. Finally, Raymond James initiated coverage on Zimmer Biomet in a research note on Thursday, March 15th. They issued an outperform rating and a $135.00 price objective for the company. Four analysts have rated the stock with a sell rating, seven have given a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of Buy and an average price target of $135.82.

Shares of Zimmer Biomet opened at $111.82 on Monday, MarketBeat.com reports. The company has a quick ratio of 1.07, a current ratio of 1.69 and a debt-to-equity ratio of 0.79. Zimmer Biomet has a 52 week low of $104.28 and a 52 week high of $133.49. The company has a market capitalization of $22.65 billion, a price-to-earnings ratio of 13.73, a PEG ratio of 2.18 and a beta of 1.13.

Zimmer Biomet (NYSE:ZBH) last announced its quarterly earnings data on Thursday, April 26th. The medical equipment provider reported $1.91 EPS for the quarter, beating the Zacks’ consensus estimate of $1.89 by $0.02. Zimmer Biomet had a return on equity of 14.36% and a net margin of 21.81%. The firm had revenue of $2.02 billion during the quarter, compared to analysts’ expectations of $1.98 billion. During the same quarter last year, the firm posted $2.13 earnings per share. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year. research analysts predict that Zimmer Biomet will post 7.67 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 31st. Investors of record on Friday, June 29th will be issued a dividend of $0.24 per share. The ex-dividend date is Thursday, June 28th. This represents a $0.96 dividend on an annualized basis and a yield of 0.86%. Zimmer Biomet’s dividend payout ratio (DPR) is currently 11.96%.

In related news, insider Katarzyna Mazur-Hofsaess sold 8,765 shares of Zimmer Biomet stock in a transaction on Tuesday, May 22nd. The stock was sold at an average price of $113.61, for a total transaction of $995,791.65. Following the sale, the insider now directly owns 25,447 shares in the company, valued at $2,891,033.67. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Tony W. Collins sold 1,330 shares of Zimmer Biomet stock in a transaction on Monday, April 30th. The stock was sold at an average price of $116.73, for a total value of $155,250.90. The disclosure for this sale can be found here. Company insiders own 0.71% of the company’s stock.

A number of institutional investors have recently modified their holdings of ZBH. Bedel Financial Consulting Inc. bought a new stake in Zimmer Biomet during the first quarter worth $111,000. Summit Trail Advisors LLC lifted its holdings in Zimmer Biomet by 8,836.9% during the first quarter. Summit Trail Advisors LLC now owns 127,887 shares of the medical equipment provider’s stock worth $128,000 after acquiring an additional 126,456 shares during the period. Massey Quick Simon & CO. LLC lifted its holdings in Zimmer Biomet by 100.0% during the first quarter. Massey Quick Simon & CO. LLC now owns 1,200 shares of the medical equipment provider’s stock worth $131,000 after acquiring an additional 600 shares during the period. We Are One Seven LLC bought a new stake in Zimmer Biomet during the fourth quarter worth $137,000. Finally, Adviser Investments LLC bought a new stake in Zimmer Biomet during the first quarter worth $144,000. Institutional investors and hedge funds own 87.38% of the company’s stock.

Zimmer Biomet Company Profile

Zimmer Biomet Holdings, Inc, together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental.

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