Zimmer Biomet (NYSE:ZBH) Hits New 1-Year High Following Better-Than-Expected Earnings

Posted by on May 3rd, 2023

Shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH – Get Rating) reached a new 52-week high on Tuesday following a better than expected earnings announcement. The company traded as high as $149.25 and last traded at $145.33, with a volume of 1140088 shares. The stock had previously closed at $138.83.

The medical equipment provider reported $1.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.64 by $0.25. The firm had revenue of $1.83 billion for the quarter, compared to the consensus estimate of $1.70 billion. Zimmer Biomet had a return on equity of 11.97% and a net margin of 3.33%. The company’s quarterly revenue was up 10.1% on a year-over-year basis. During the same period in the prior year, the company posted $1.61 earnings per share.

Zimmer Biomet Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, April 28th. Stockholders of record on Wednesday, March 29th were issued a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a dividend yield of 0.67%. The ex-dividend date was Tuesday, March 28th. Zimmer Biomet’s payout ratio is currently 87.27%.

Analyst Ratings Changes

ZBH has been the topic of a number of research analyst reports. Oppenheimer upped their price target on Zimmer Biomet from $120.00 to $142.00 and gave the company an “outperform” rating in a report on Monday, February 6th. Royal Bank of Canada raised Zimmer Biomet from a “sector perform” rating to an “outperform” rating and increased their target price for the company from $125.00 to $141.00 in a report on Monday, January 9th. UBS Group began coverage on Zimmer Biomet in a report on Tuesday, March 28th. They issued a “sell” rating and a $112.00 target price on the stock. Jefferies Financial Group raised Zimmer Biomet from an “underperform” rating to a “hold” rating and increased their target price for the company from $115.00 to $130.00 in a report on Friday, March 31st. Finally, Robert W. Baird increased their target price on Zimmer Biomet from $133.00 to $145.00 in a report on Monday, February 6th. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $134.19.

Insider Buying and Selling

In related news, VP Chad F. Phipps sold 23,045 shares of the stock in a transaction dated Friday, March 17th. The stock was sold at an average price of $124.50, for a total transaction of $2,869,102.50. Following the completion of the sale, the vice president now owns 43,671 shares in the company, valued at $5,437,039.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.95% of the stock is currently owned by company insiders.

Institutional Trading of Zimmer Biomet

Several institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in Zimmer Biomet by 1.0% during the third quarter. Vanguard Group Inc. now owns 23,809,176 shares of the medical equipment provider’s stock valued at $2,489,249,000 after buying an additional 235,871 shares during the last quarter. BlackRock Inc. boosted its stake in Zimmer Biomet by 3.3% during the third quarter. BlackRock Inc. now owns 21,494,011 shares of the medical equipment provider’s stock valued at $2,247,199,000 after buying an additional 683,526 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Zimmer Biomet by 6.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 11,200,109 shares of the medical equipment provider’s stock valued at $1,428,014,000 after buying an additional 650,886 shares during the last quarter. Geode Capital Management LLC boosted its stake in Zimmer Biomet by 2.3% during the fourth quarter. Geode Capital Management LLC now owns 4,219,139 shares of the medical equipment provider’s stock valued at $536,945,000 after buying an additional 95,972 shares during the last quarter. Finally, Morgan Stanley boosted its stake in Zimmer Biomet by 80.5% during the fourth quarter. Morgan Stanley now owns 3,102,429 shares of the medical equipment provider’s stock valued at $395,560,000 after buying an additional 1,384,068 shares during the last quarter. Hedge funds and other institutional investors own 87.21% of the company’s stock.

Zimmer Biomet Stock Performance

The business has a 50 day moving average of $129.01 and a 200 day moving average of $123.83. The company has a market capitalization of $29.89 billion, a P/E ratio of 130.01, a price-to-earnings-growth ratio of 3.17 and a beta of 1.00. The company has a quick ratio of 0.97, a current ratio of 1.88 and a debt-to-equity ratio of 0.43.

About Zimmer Biomet

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Zimmer Biomet Holdings, Inc engages in the design, manufacture, and marketing of orthopedic reconstructive products. The firm also offers sports medicine, biologics, extremities, and trauma products, spine, craniomaxillofacial, and thoracic products, office-based technologies, dental implants, and related surgical products.

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