Globus Medical (NYSE:GMED) Sets New 52-Week High – Should You Buy?

Globus Medical, Inc. (NYSE:GMED)’s stock price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $92.42 and last traded at $92.33, with a volume of 1546402 shares changing hands. The stock had previously closed at $90.80.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on GMED. Royal Bank of Canada raised their price objective on Globus Medical from $80.00 to $92.00 and gave the stock an “outperform” rating in a research note on Wednesday, November 6th. Stifel Nicolaus lifted their price target on shares of Globus Medical from $80.00 to $92.00 and gave the company a “buy” rating in a report on Wednesday, November 6th. Piper Sandler increased their price objective on shares of Globus Medical from $80.00 to $100.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 6th. Wells Fargo & Company lifted their target price on shares of Globus Medical from $88.00 to $95.00 and gave the company an “overweight” rating in a research note on Wednesday, December 11th. Finally, BTIG Research increased their price target on Globus Medical from $87.00 to $91.00 and gave the stock a “buy” rating in a research note on Thursday, December 12th. Four equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to MarketBeat.com, Globus Medical has an average rating of “Moderate Buy” and an average price target of $96.91.

Globus Medical Price Performance

The business has a 50-day moving average of $84.25 and a 200 day moving average of $76.16. The company has a market capitalization of $12.57 billion, a PE ratio of 137.80, a P/E/G ratio of 1.73 and a beta of 1.19.

Globus Medical (NYSE:GMED) last posted its earnings results on Tuesday, November 5th. The medical device company reported $0.83 EPS for the quarter, beating analysts’ consensus estimates of $0.65 by $0.18. Globus Medical had a return on equity of 9.98% and a net margin of 3.69%. The firm had revenue of $625.71 million during the quarter, compared to the consensus estimate of $604.69 million. During the same period in the prior year, the company earned $0.57 EPS. The company’s quarterly revenue was up 63.1% compared to the same quarter last year. As a group, research analysts anticipate that Globus Medical, Inc. will post 2.98 EPS for the current year.

Insider Activity

In related news, CFO Keith W. Pfeil sold 14,167 shares of the stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $88.29, for a total value of $1,250,804.43. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Daniel T. Scavilla sold 60,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $80.02, for a total value of $4,801,200.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 81,667 shares of company stock worth $6,674,554. 18.54% of the stock is currently owned by corporate insiders.

Institutional Trading of Globus Medical

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Select Equity Group L.P. purchased a new stake in Globus Medical in the 2nd quarter valued at about $91,711,000. Millennium Management LLC grew its stake in Globus Medical by 1,171.5% in the second quarter. Millennium Management LLC now owns 1,363,834 shares of the medical device company’s stock worth $93,409,000 after purchasing an additional 1,256,570 shares in the last quarter. ArrowMark Colorado Holdings LLC purchased a new position in Globus Medical during the 3rd quarter worth $43,947,000. Lord Abbett & CO. LLC bought a new stake in Globus Medical during the 3rd quarter valued at $37,948,000. Finally, Parsifal Capital Management LP lifted its holdings in shares of Globus Medical by 50.5% in the 3rd quarter. Parsifal Capital Management LP now owns 1,350,553 shares of the medical device company’s stock worth $96,619,000 after buying an additional 453,053 shares during the period. Hedge funds and other institutional investors own 95.16% of the company’s stock.

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.