K2M Group Holdings, Inc. (KTWO) Trading Down 18.4% on Analyst Downgrade

Shares of K2M Group Holdings, Inc. (NASDAQ:KTWO) traded down 18.4% on Monday after ValuEngine downgraded the stock from a hold rating to a sell rating. The stock traded as low as $17.23 and last traded at $17.77. 5,085,282 shares were traded during mid-day trading, an increase of 1,152% from the average session volume of 406,086 shares. The stock had previously closed at $21.78.

Several other analysts also recently weighed in on the stock. Needham & Company LLC cut their price objective on shares of K2M Group Holdings from $29.00 to $27.00 and set a “strong-buy” rating on the stock in a research report on Monday. Zacks Investment Research upgraded shares of K2M Group Holdings from a “hold” rating to a “buy” rating and set a $25.00 price objective on the stock in a research report on Wednesday, October 4th. Piper Jaffray Companies reiterated a “buy” rating and issued a $28.00 price objective on shares of K2M Group Holdings in a research report on Thursday, September 28th. Royal Bank Of Canada restated a “buy” rating and set a $26.00 price target on shares of K2M Group Holdings in a research report on Friday, September 22nd. Finally, Cowen and Company set a $28.00 price target on shares of K2M Group Holdings and gave the stock a “buy” rating in a research report on Thursday, August 17th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. K2M Group Holdings currently has a consensus rating of “Buy” and an average price target of $27.50.

In related news, CFO Gregory S. Cole sold 2,350 shares of the business’s stock in a transaction that occurred on Tuesday, August 15th. The shares were sold at an average price of $24.08, for a total value of $56,588.00. Following the sale, the chief financial officer now directly owns 55,158 shares in the company, valued at approximately $1,328,204.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider John Philip Md Kostuik sold 1,090 shares of the business’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $24.08, for a total transaction of $26,247.20. Following the completion of the sale, the insider now owns 201,961 shares in the company, valued at $4,863,220.88. The disclosure for this sale can be found here. Insiders have sold a total of 44,129 shares of company stock worth $1,033,644 over the last 90 days. 5.80% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Paulson & CO. Inc. raised its holdings in shares of K2M Group Holdings by 13.6% in the 2nd quarter. Paulson & CO. Inc. now owns 109,600 shares of the medical device company’s stock worth $2,670,000 after purchasing an additional 13,100 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of K2M Group Holdings by 41.8% in the 2nd quarter. California State Teachers Retirement System now owns 71,871 shares of the medical device company’s stock worth $1,751,000 after purchasing an additional 21,200 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of K2M Group Holdings by 51.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 31,807 shares of the medical device company’s stock worth $774,000 after purchasing an additional 10,738 shares in the last quarter. State Street Corp raised its holdings in shares of K2M Group Holdings by 39.8% in the 2nd quarter. State Street Corp now owns 713,257 shares of the medical device company’s stock worth $17,378,000 after purchasing an additional 203,067 shares in the last quarter. Finally, Macquarie Group Ltd. raised its holdings in shares of K2M Group Holdings by 0.3% in the 2nd quarter. Macquarie Group Ltd. now owns 200,656 shares of the medical device company’s stock worth $4,888,000 after purchasing an additional 581 shares in the last quarter. Institutional investors and hedge funds own 97.86% of the company’s stock.

The firm’s market cap is $768.87 million. The company has a 50 day moving average price of $22.10 and a 200-day moving average price of $22.53.

K2M Group Holdings (NASDAQ:KTWO) last released its earnings results on Tuesday, August 1st. The medical device company reported ($0.21) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.01. K2M Group Holdings had a negative net margin of 16.21% and a negative return on equity of 15.45%. The company had revenue of $65.70 million for the quarter, compared to the consensus estimate o

Several other analysts also recently weighed in on the stock. Needham & Company LLC cut their price objective on shares of K2M Group Holdings from $29.00 to $27.00 and set a “strong-buy” rating on the stock in a research report on Monday. Zacks Investment Research upgraded shares of K2M Group Holdings from a “hold” rating to a “buy” rating and set a $25.00 price objective on the stock in a research report on Wednesday, October 4th. Piper Jaffray Companies reiterated a “buy” rating and issued a $28.00 price objective on shares of K2M Group Holdings in a research report on Thursday, September 28th. Royal Bank Of Canada restated a “buy” rating and set a $26.00 price target on shares of K2M Group Holdings in a research report on Friday, September 22nd. Finally, Cowen and Company set a $28.00 price target on shares of K2M Group Holdings and gave the stock a “buy” rating in a research report on Thursday, August 17th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. K2M Group Holdings currently has a consensus rating of “Buy” and an average price target of $27.50.

In related news, CFO Gregory S. Cole sold 2,350 shares of the business’s stock in a transaction that occurred on Tuesday, August 15th. The shares were sold at an average price of $24.08, for a total value of $56,588.00. Following the sale, the chief financial officer now directly owns 55,158 shares in the company, valued at approximately $1,328,204.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider John Philip Md Kostuik sold 1,090 shares of the business’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $24.08, for a total transaction of $26,247.20. Following the completion of the sale, the insider now owns 201,961 shares in the company, valued at $4,863,220.88. The disclosure for this sale can be found here. Insiders have sold a total of 44,129 shares of company stock worth $1,033,644 over the last 90 days. 5.80% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Paulson & CO. Inc. raised its holdings in shares of K2M Group Holdings by 13.6% in the 2nd quarter. Paulson & CO. Inc. now owns 109,600 shares of the medical device company’s stock worth $2,670,000 after purchasing an additional 13,100 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of K2M Group Holdings by 41.8% in the 2nd quarter. California State Teachers Retirement System now owns 71,871 shares of the medical device company’s stock worth $1,751,000 after purchasing an additional 21,200 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of K2M Group Holdings by 51.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 31,807 shares of the medical device company’s stock worth $774,000 after purchasing an additional 10,738 shares in the last quarter. State Street Corp raised its holdings in shares of K2M Group Holdings by 39.8% in the 2nd quarter. State Street Corp now owns 713,257 shares of the medical device company’s stock worth $17,378,000 after purchasing an additional 203,067 shares in the last quarter. Finally, Macquarie Group Ltd. raised its holdings in shares of K2M Group Holdings by 0.3% in the 2nd quarter. Macquarie Group Ltd. now owns 200,656 shares of the medical device company’s stock worth $4,888,000 after purchasing an additional 581 shares in the last quarter. Institutional investors and hedge funds own 97.86% of the company’s stock.

The firm’s market cap is $768.87 million. The company has a 50 day moving average price of $22.10 and a 200-day moving average price of $22.53.

K2M Group Holdings (NASDAQ:KTWO) last released its earnings results on Tuesday, August 1st. The medical device company reported ($0.21) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.01. K2M Group Holdings had a negative net margin of 16.21% and a negative return on equity of 15.45%. The company had revenue of $65.70 million for the quarter, compared to the consensus estimate of $66.26 million. During the same period in the prior year, the company posted ($0.27) EPS. The company’s revenue was up 11.0% compared to the same quarter last year. Analysts predict that K2M Group Holdings, Inc. will post ($0.78) earnings per share for the current fiscal year.

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About K2M Group Holdings

K2M Group Holdings, Inc is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor.

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