Zimmer Biomet (NYSE:ZBH) Shares Gap Down – Time to Sell?

Shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH) gapped down prior to trading on Thursday . The stock had previously closed at $108.25, but opened at $104.00. Zimmer Biomet shares last traded at $104.70, with a volume of 227,550 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms recently commented on ZBH. Royal Bank of Canada raised their target price on Zimmer Biomet from $120.00 to $125.00 and gave the stock an “outperform” rating in a report on Monday, November 4th. Needham & Company LLC reiterated a “hold” rating on shares of Zimmer Biomet in a research note on Wednesday, January 29th. Wells Fargo & Company lifted their price objective on shares of Zimmer Biomet from $110.00 to $117.00 and gave the company an “equal weight” rating in a report on Thursday, October 31st. JPMorgan Chase & Co. raised shares of Zimmer Biomet from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $125.00 to $128.00 in a research note on Tuesday, December 17th. Finally, Truist Financial upped their target price on Zimmer Biomet from $117.00 to $118.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, Zimmer Biomet presently has an average rating of “Hold” and a consensus target price of $124.11.

Zimmer Biomet Price Performance

The company has a debt-to-equity ratio of 0.38, a current ratio of 1.36 and a quick ratio of 0.70. The stock’s 50 day moving average price is $107.75 and its two-hundred day moving average price is $108.20. The firm has a market capitalization of $21.01 billion, a price-to-earnings ratio of 20.04, a PEG ratio of 1.88 and a beta of 1.02.

Zimmer Biomet (NYSE:ZBH) last released its earnings results on Thursday, February 6th. The medical equipment provider reported $2.31 earnings per share for the quarter, beating the consensus estimate of $2.30 by $0.01. Zimmer Biomet had a net margin of 14.27% and a return on equity of 12.95%. During the same period in the previous year, the firm earned $2.20 earnings per share. On average, equities research analysts anticipate that Zimmer Biomet Holdings, Inc. will post 7.99 EPS for the current year.

Zimmer Biomet Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 31st. Stockholders of record on Monday, December 30th were given a dividend of $0.24 per share. The ex-dividend date was Monday, December 30th. This represents a $0.96 annualized dividend and a dividend yield of 0.91%. Zimmer Biomet’s dividend payout ratio (DPR) is currently 18.25%.

Institutional Investors Weigh In On Zimmer Biomet

A number of institutional investors have recently added to or reduced their stakes in ZBH. Geode Capital Management LLC lifted its position in shares of Zimmer Biomet by 2.6% during the 3rd quarter. Geode Capital Management LLC now owns 4,879,385 shares of the medical equipment provider’s stock worth $524,942,000 after buying an additional 125,852 shares during the period. Van ECK Associates Corp increased its position in shares of Zimmer Biomet by 5.9% during the 4th quarter. Van ECK Associates Corp now owns 3,955,449 shares of the medical equipment provider’s stock worth $417,814,000 after purchasing an additional 218,688 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its position in Zimmer Biomet by 0.4% in the third quarter. Allspring Global Investments Holdings LLC now owns 2,569,311 shares of the medical equipment provider’s stock valued at $277,357,000 after buying an additional 9,990 shares in the last quarter. Hotchkis & Wiley Capital Management LLC grew its stake in Zimmer Biomet by 49.1% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 1,752,298 shares of the medical equipment provider’s stock worth $189,161,000 after buying an additional 577,320 shares during the last quarter. Finally, Equity Investment Corp increased its holdings in shares of Zimmer Biomet by 57.2% during the fourth quarter. Equity Investment Corp now owns 1,021,062 shares of the medical equipment provider’s stock worth $107,855,000 after buying an additional 371,653 shares in the last quarter. 88.89% of the stock is owned by institutional investors and hedge funds.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc, together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest.