Zimmer Biomet (NYSE:ZBH) Reaches New 52-Week High Following Strong Earnings

Shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH) hit a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $110.75 and last traded at $109.48, with a volume of 501,735 shares traded. The stock had previously closed at $97.06.

The medical equipment provider reported $1.90 earnings per share for the quarter, topping analysts’ consensus estimates of $1.88 by $0.02. The business had revenue of $2.06 billion during the quarter, compared to analysts’ expectations of $2.04 billion. Zimmer Biomet had a return on equity of 13.12% and a net margin of 9.48%. The company’s revenue was up 3.1% compared to the same quarter last year. During the same period in the prior year, the business posted $1.90 EPS.

Zimmer Biomet Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were paid a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Wednesday, September 30th. Zimmer Biomet’s dividend payout ratio (DPR) is 23.36%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on ZBH. UBS Group reissued a “buy” rating and issued a $120.00 price target on shares of Zimmer Biomet in a research note on Thursday, August 6th. Truist Financial increased their price objective on shares of Zimmer Biomet from $92.00 to $106.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. Royal Bank Of Canada lifted their target price on shares of Zimmer Biomet from $101.00 to $110.00 and gave the company an “outperform” rating in a report on Thursday, August 6th. Argus reiterated a “buy” rating and issued a $125.00 target price on shares of Zimmer Biomet in a report on Thursday, October 22nd. Finally, Wall Street Zen raised Zimmer Biomet from a “hold” rating to a “buy” rating in a research report on Saturday. Seven equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $104.47.

Insiders Place Their Bets

In other Zimmer Biomet news, insider Chad F. Phipps sold 3,000 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $98.35, for a total value of $295,050.00. Following the sale, the insider owned 65,231 shares of the company’s stock, valued at $6,415,468.85. This trade represents a 4.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Kevin R. Thornal sold 5,691 shares of Zimmer Biomet stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $92.95, for a total value of $528,978.45. The disclosure for this sale is available in the SEC filing. Company insiders own 1.28% of the company’s stock.

Institutional Trading of Zimmer Biomet

A number of large investors have recently made changes to their positions in the company. StoneRidge PMG Advisors LLC purchased a new stake in Zimmer Biomet in the 3rd quarter valued at approximately $295,000. Missouri Trust & Investment Co increased its position in shares of Zimmer Biomet by 1.9% in the third quarter. Missouri Trust & Investment Co now owns 25,427 shares of the medical equipment provider’s stock valued at $2,259,000 after buying an additional 475 shares in the last quarter. University of Texas Texas AM Investment Management Co. increased its holdings in Zimmer Biomet by 88.9% during the 3rd quarter. University of Texas Texas AM Investment Management Co. now owns 867 shares of the medical equipment provider’s stock valued at $77,000 after acquiring an additional 408 shares in the last quarter. Ethic Inc. raised its position in shares of Zimmer Biomet by 35.3% during the 3rd quarter. Ethic Inc. now owns 20,634 shares of the medical equipment provider’s stock worth $1,833,000 after purchasing an additional 5,378 shares during the last quarter. Finally, StoneX Group Inc. purchased a new stake in shares of Zimmer Biomet in the third quarter valued at $303,000. 88.89% of the stock is currently owned by hedge funds and other institutional investors.

Zimmer Biomet Stock Performance

The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.94 and a current ratio of 1.69. The company has a market capitalization of $20.89 billion, a PE ratio of 26.65, a price-to-earnings-growth ratio of 2.34 and a beta of 0.50. The stock’s fifty day simple moving average is $94.71 and its 200-day simple moving average is $91.78.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc is a medical technology company that develops and manufactures products used in orthopedic surgery and musculoskeletal care. Its portfolio includes implants for the hip, knee, shoulder, and other joints, as well as products for sports medicine, extremity reconstruction, trauma, and spine procedures.

The company also offers surgical technologies and solutions designed to support orthopedic procedures, including robotic-assisted surgery systems, digital tools, patient-specific planning, and related instruments.