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Edwards Lifesciences Corp (NYSE:EW), a $40 billion market cap medical devices company with strong financial health metrics according to InvestingPro, recently disclosed that Donald E. Bobo Jr., the company’s Corporate Vice President of Strategy and Corporate Development, sold a significant amount of company stock. According to the SEC filing, Bobo sold 9,500 shares at an average price of $67.96 each, realizing a total value of approximately $645,623. This transaction was part of a pre-arranged trading plan under Rule 10b5-1, which Bobo adopted in December 2023. The sale comes as the company maintains a strong balance sheet with more cash than debt and impressive profitability metrics, including a 79.5% gross margin.
In addition to the stock sale, Bobo exercised 9,500 stock options at a price of $45.28 per share, amounting to a total value of $430,128. Post-transaction, Bobo holds 46,935 shares directly. The filing also indicates indirect ownership of additional shares through a 401(k) plan and a trust. For deeper insights into insider trading patterns and comprehensive financial analysis, including 10 additional ProTips, check out the detailed research report available on InvestingPro.
In other recent news, Edwards Lifesciences reported impressive financial results for the fourth quarter of 2024, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.59, compared to a forecast of $0.55. The company’s revenue reached $1.39 billion, exceeding the anticipated $1.36 billion, marking a 9% year-over-year increase. Significant growth was observed in the Transcatheter Aortic Valve Replacement (TAVR) segment, which generated $1.04 billion in revenue, a 5.3% increase from the previous year. The Transcatheter Mitral and Tricuspid Therapies (TMTT) division also showed robust growth with an 85% year-over-year increase in sales, contributing $105.1 million to the quarterly revenue.
Following these results, Canaccord Genuity analyst William Plovanic raised the price target for Edwards Lifesciences to $71, maintaining a Hold rating, while Stifel analysts reiterated a Buy rating with a $90 price target, reflecting confidence in the company’s growth trajectory. Edwards Lifesciences reiterated its financial guidance for 2025, projecting total company sales between $5.6 billion and $6.0 billion, with TAVR sales expected to range from $4.1 billion to $4.4 billion and TMTT sales between $500 million and $530 million. The company anticipates a sequential increase in first-quarter sales for 2025, although year-over-year growth rates for TAVR are expected to be slightly below the full-year expectations due to one less selling day in the quarter.
Analysts at Stifel noted the company’s success in meeting key performance indicators and highlighted the TAVR and TMTT divisions as significant contributors to Edwards Lifesciences’ positive outlook. The company’s strategic focus on structural heart disease, along with recent acquisitions, positions it well for sustained growth and innovation in the coming years.
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