Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com - Piper Sandler has reiterated an Overweight rating and $110.00 price target on Merit Medical Systems , Inc. (NASDAQ:MMSI), a $5.5 billion medical device company currently trading at $93.39, despite recent insider sales that prompted investor inquiries. According to InvestingPro analysis, the company maintains a GREAT financial health score, though it’s currently trading at premium valuations with a P/E ratio of 46.4x.
The research firm noted several "bite-sized" insider sales from Merit Medical (TASE:BLWV) executives, including four separate sales from CEO Lampropoulos, an option exercise with subsequent sale from CFO Parra, and two sales from board members. The board member transactions were executed under 10b5-1 plans implemented in February. Want deeper insights into insider trading patterns? InvestingPro offers comprehensive analysis of executive transactions and 12+ additional ProTips for MMSI.
Piper Sandler confirmed that timing dynamics were partially responsible for the sales, as management had been "blacked out" from selling over the past several months, likely due to pending M&A and WRAPSODY updates. This restriction created a bunching effect once the trading window opened.
The firm specifically addressed CEO Lampropoulos’s sales, which reached their highest year-to-date level since 2019. These transactions represented approximately 3% of his total ownership interest, with 40,400 shares sold and 1.2 million shares remaining.
Piper Sandler maintained its positive outlook on Merit Medical, stating the company remains a "top idea" heading into the end of the second quarter, with "no reason to think that the track record of quarterly execution is at risk." The company’s strong financial position is evidenced by its healthy current ratio of 4.87 and 8.19% revenue growth. Investors should note that Merit Medical’s next earnings report is scheduled for July 23, 2025.
In other recent news, Merit Medical Systems, Inc. reported its first-quarter 2025 earnings, surpassing consensus estimates for both revenue and earnings per share (EPS). Despite this positive performance, Needham analysts lowered the company’s price target from $116 to $100, while maintaining a Buy rating, citing the impact of tariffs on EPS. Meanwhile, Canaccord Genuity raised its price target for Merit Medical to $112, maintaining a Buy rating, following the company’s acquisition of Biolife Delaware L.L.C. for $120 million. This acquisition is expected to contribute $10 to $11 million in revenue for 2025 but is projected to slightly dilute non-GAAP EPS due to reduced interest income. However, it is anticipated to enhance non-GAAP gross and operating margins in 2025 and positively impact non-GAAP net income and EPS in 2026. Additionally, Merit Medical announced Health Canada’s approval of its WRAPSODY CIE device, designed to improve hemodialysis treatment, with plans for immediate commercialization in Canada. The device had already received approval in the United States and the European Union. These developments reflect Merit Medical’s strategic efforts to expand its product portfolio and strengthen its position in the healthcare sector.
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