Globus Medical (GMED) Shares Down 7.5% Following Insider Selling

Shares of Globus Medical Inc (NYSE:GMED) dropped 7.5% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $48.39 and last traded at $49.31. Approximately 1,722,104 shares traded hands during mid-day trading, an increase of 143% from the average daily volume of 710,012 shares. The stock had previously closed at $53.28.

Specifically, President Anthony L. Williams sold 121,667 shares of Globus Medical stock in a transaction dated Monday, June 11th. The stock was sold at an average price of $56.14, for a total transaction of $6,830,385.38. Following the completion of the sale, the president now directly owns 10,000 shares in the company, valued at approximately $561,400. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Eric Schwartz sold 10,000 shares of Globus Medical stock in a transaction dated Monday, June 25th. The shares were sold at an average price of $53.79, for a total value of $537,900.00. Following the sale, the vice president now owns 10,000 shares of the company’s stock, valued at $537,900. The disclosure for this sale can be found here. Insiders have sold a total of 2,004,442 shares of company stock valued at $104,136,842 over the last 90 days. Corporate insiders own 28.44% of the company’s stock.

Several equities research analysts have recently issued reports on the company. Oppenheimer set a $52.00 price target on Globus Medical and gave the company a “hold” rating in a report on Thursday, May 3rd. Needham & Company LLC upgraded Globus Medical from a “hold” rating to a “buy” rating and set a $57.00 price target for the company in a report on Wednesday, April 4th. They noted that the move was a valuation call. Leerink Swann lifted their price target on Globus Medical from $60.00 to $61.00 and gave the company an “outperform” rating in a report on Wednesday, May 30th. Morgan Stanley lifted their price target on Globus Medical from $53.00 to $58.00 and gave the company a “buy” rating in a report on Thursday, May 3rd. Finally, BTIG Research reiterated a “neutral” rating and set a $37.00 price target on shares of Globus Medical in a report on Monday, April 16th. Two analysts have rated the stock with a sell rating, three have issued a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. Globus Medical has an average rating of “Buy” and a consensus price target of $53.18.

The company has a market cap of $5.19 billion, a price-to-earnings ratio of 38.13, a P/E/G ratio of 2.85 and a beta of 0.45.

Globus Medical (NYSE:GMED) last issued its quarterly earnings data on Wednesday, May 2nd. The medical device company reported $0.41 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.36 by $0.05. Globus Medical had a return on equity of 14.51% and a net margin of 18.05%. The business had revenue of $174.41 million for the quarter, compared to the consensus estimate of $167.95 million. During the same period last year, the business earned $0.32 EPS. The firm’s revenue was up 11.9% compared to the same quarter last year. sell-side analysts expect that Globus Medical Inc will post 1.52 EPS for the current fiscal year.

Several hedge funds have recently modified their holdings of GMED. Teacher Retirement System of Texas bought a new position in shares of Globus Medical in the 4th quarter valued at approximately $1,025,000. California Public Employees Retirement System raised its stake in shares of Globus Medical by 14.4% in the 4th quarter. California Public Employees Retirement System now owns 89,605 shares of the medical device company’s stock valued at $3,683,000 after acquiring an additional 11,253 shares in the last quarter. Swiss National Bank raised its stake in shares of Globus Medical by 2.2% in the 4th quarter. Swiss National Bank now owns 123,300 shares of the medical device company’s stock valued at $5,068,000 after acquiring an additional 2,700 shares in the last quarter. Wells Fargo & Company MN raised its stake in shares of Globus Medical by 3.4% in the 4th quarter. Wells Fargo & Company MN now owns 676,224 shares of the medical device company’s stock valued at $27,793,000 after acquiring an additional 22,011 shares in the last quarter. Finally, Arizona State Retirement System raised its stake in shares of Globus Medical by 27.5% in the 4th quarter. Arizona State Retirement System now owns 52,178 shares of the medical device company’s stock valued at $2,145,000 after acquiring an additional 11,270 shares in the last quarter. 62.54% of the stock is currently owned by institutional investors and hedge funds.

About Globus Medical

Globus Medical, Inc, a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company offers products that address an array of spinal pathologies, anatomies, and surgical approaches. Its fusion products include a range of implant and surgical approach options to treat degenerative, deformity, tumor, and trauma conditions along the spine from the occiput to the sacrum.

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