Globus Medical launches $500 million stock buyback

AUDUBON, Pa. - Globus Medical, Inc. (NYSE: GMED), a prominent musculoskeletal solutions company with a market capitalization of $7.8 billion, has announced a new share repurchase program. Today, the company’s Board of Directors authorized the repurchase of up to $500 million of its outstanding common stock. According to InvestingPro analysis, the stock is currently trading near its 52-week low of $54.48, suggesting potential value opportunity for investors.

The decision to buy back shares comes as Globus Medical’s Chief Financial Officer and Chief Operating Officer, Keith Pfeil, cited "a meaningful disconnect between our intrinsic value and our market valuation." This assessment aligns with InvestingPro data, which indicates the company is currently undervalued. Pfeil expressed confidence in the company’s "strong track record of growth and profitability," supported by impressive revenue growth of 32% and an excellent financial health score. The repurchase program reaffirms the company’s dedication to generating long-term shareholder value.

The specifics of the repurchase, such as the timing and the exact number of shares to be bought back, will be at the discretion of the company’s management. These decisions will hinge on a variety of factors, including the market price of the shares, prevailing business and market conditions, legal requirements, and other investment opportunities.

Executed in line with Globus Medical’s capital allocation strategy, the program prioritizes long-term business growth over immediate returns. The buybacks may occur via open market transactions, private deals, or under pre-established trading plans that comply with SEC rules.

Notably, the program does not have a set expiration date and can be paused or discontinued at any time. The company plans to fund the repurchase using its existing cash reserves, which appear robust given its strong current ratio of 4.45 and minimal debt levels. InvestingPro subscribers can access detailed financial analysis and 13 additional ProTips about Globus Medical’s financial position and growth prospects through the comprehensive Pro Research Report.

Globus Medical, recognized for its work in spine, orthopedic trauma, joint reconstruction, biomaterials, and enabling technologies, is committed to addressing unmet clinical needs and enhancing patient care.

This press release contains forward-looking statements, which are based on current assumptions and forecasts. These statements are subject to risks and uncertainties that could cause actual outcomes to differ significantly from those projected. Investors are reminded that forward-looking statements are not guarantees of future performance and that they should not place undue reliance on them as they are based on management’s current views and assumptions.

The information for this article is based on a press release statement from Globus Medical, Inc.

In other recent news, Globus Medical has reported its financial results for the first quarter of 2025, revealing a miss on both earnings and revenue forecasts. The company posted an earnings per share (EPS) of $0.68, falling short of the expected $0.75, while revenue reached $598.1 million, below the anticipated $631.09 million. Following this announcement, several analysts adjusted their outlooks on the company’s stock. Oppenheimer reduced the price target from $90.00 to $78.00, maintaining a Perform rating, while Truist Securities cut the target to $68.00 and kept a Hold rating. BTIG also lowered its target to $77.00 but continued to endorse the stock with a Buy rating, and Stifel adjusted its price target to $70, maintaining a Buy rating. These revisions reflect concerns over the company’s performance, particularly in the Musculoskeletal and Enabling Technology segments, which faced challenges such as reimbursement issues and elongated sales cycles. Additionally, the recent acquisition of Nevro is expected to be more dilutive to earnings than initially forecasted. Despite these setbacks, Globus Medical reaffirmed its 2025 revenue guidance but slightly decreased its EPS outlook, citing the earlier-than-expected closure of the Nevro acquisition.

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