Zimmer Biomet (NYSE:ZBH) Shares Gap Down – Here’s Why

Zimmer Biomet Holdings, Inc. (NYSE:ZBH)’s stock price 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.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Wells Fargo & Company lifted their price target on shares of Zimmer Biomet from $110.00 to $117.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 31st. Stifel Nicolaus increased their price target on Zimmer Biomet from $130.00 to $138.00 and gave the stock a “buy” rating in a report on Thursday, January 23rd. Royal Bank of Canada lifted their price target on shares of Zimmer Biomet from $120.00 to $125.00 and gave the company an “outperform” rating in a research note on Monday, November 4th. Barclays cut their target price on shares of Zimmer Biomet from $125.00 to $118.00 and set an “underweight” rating for the company in a research note on Thursday, December 12th. Finally, Truist Financial raised their price target on Zimmer Biomet from $117.00 to $118.00 and gave the company a “hold” rating in a report on Wednesday, December 18th. Two equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $124.11.

Zimmer Biomet Stock Performance

The company has a current ratio of 1.36, a quick ratio of 0.70 and a debt-to-equity ratio of 0.38. The company has a 50-day moving average price of $107.75 and a two-hundred day moving average price of $108.20. The stock has a market capitalization of $21.01 billion, a P/E ratio of 20.04, a price-to-earnings-growth ratio of 1.88 and a beta of 1.02.

Zimmer Biomet (NYSE:ZBH) last announced its earnings results on Thursday, February 6th. The medical equipment provider reported $2.31 EPS 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 prior year, the company earned $2.20 earnings per share. On average, equities analysts forecast that Zimmer Biomet Holdings, Inc. will post 7.99 earnings per share for the current year.

Zimmer Biomet Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Monday, December 30th were paid a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 0.91%. The ex-dividend date was Monday, December 30th. Zimmer Biomet’s dividend payout ratio is currently 18.25%.

Hedge Funds Weigh In On Zimmer Biomet

Institutional investors and hedge funds have recently made changes to their positions in the business. Geode Capital Management LLC increased its position in 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 valued at $524,942,000 after purchasing an additional 125,852 shares during the period. Van ECK Associates Corp grew 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 valued at $417,814,000 after acquiring an additional 218,688 shares during the period. Allspring Global Investments Holdings LLC boosted its position in shares of 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 worth $277,357,000 after purchasing an additional 9,990 shares during the period. Hotchkis & Wiley Capital Management LLC raised its holdings 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 valued at $189,161,000 after acquiring an additional 577,320 shares during the period. Finally, Equity Investment Corp boosted its stake in Zimmer Biomet by 57.2% in the 4th quarter. Equity Investment Corp now owns 1,021,062 shares of the medical equipment provider’s stock worth $107,855,000 after purchasing an additional 371,653 shares during the period. Institutional investors own 88.89% of the company’s stock.

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.