Globus Medical Inc. (NYSE: GMED)’s stock price has increased by 2.33 compared to its previous closing price of 51.60. However, the company has seen a 5.52% increase in its stock price over the last five trading sessions. Seeking Alpha reported 2023-09-13 that Globus Medical, Inc. shares have seen a significant pullback after announcing a $3 billion deal to acquire NuVasive. The company has a strong track record in the spine industry and has been outgrowing its competitors. Despite the uncertainty caused by the deal, Globus has seen solid operating momentum and valuations have become more attractive.
Is It Worth Investing in Globus Medical Inc. (NYSE: GMED) Right Now?
Globus Medical Inc. (NYSE: GMED) has a price-to-earnings ratio that is above its average at 26.22x. and a 36-month beta value of 1.08. Opinions on the stock are mixed, with 4 analysts rating it as a “buy,” 1 as “overweight,” 9 as “hold,” and 0 as “sell.”
The average price predicted for Globus Medical Inc. (GMED) by analysts is $66.36, which is $13.93 above the current market price. The public float for GMED is 116.46M, and at present, short sellers hold a 9.07% of that float. On September 19, 2023, the average trading volume of GMED was 1.65M shares.
GMED’s Market Performance
The stock of Globus Medical Inc. (GMED) has seen a 5.52% increase in the past week, with a -4.02% drop in the past month, and a -8.13% fall in the past quarter. The volatility ratio for the week is 2.41%, and the volatility levels for the past 30 days are at 2.89% for GMED. The simple moving average for the past 20 days is 0.19% for GMED’s stock, with a -13.31% simple moving average for the past 200 days.
GMED Trading at -6.87% from the 50-Day Moving Average
After a stumble in the market that brought GMED to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -34.03% of loss for the given period.
Volatility was left at 2.89%, however, over the last 30 days, the volatility rate increased by 2.41%, as shares sank -4.80% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.73% lower at present.
During the last 5 trading sessions, GMED rose by +5.38%, which changed the moving average for the period of 200-days by -28.64% in comparison to the 20-day moving average, which settled at $52.57. In addition, Globus Medical Inc. saw -28.91% in overturn over a single year, with a tendency to cut further losses.
Reports are indicating that there were more than several insider trading activities at GMED starting from Lemaitre Dan, who sale 43,450 shares at the price of $56.98 back on May 15. After this action, Lemaitre Dan now owns 10,800 shares of Globus Medical Inc., valued at $2,475,977 using the latest closing price.
Pfeil Keith W, the SVP, Chief Financial Officer of Globus Medical Inc., sale 29,167 shares at $77.57 during a trade that took place back on Feb 02, which means that Pfeil Keith W is holding 0 shares at $2,262,426 based on the most recent closing price.
Stock Fundamentals for GMED
Current profitability levels for the company are sitting at:
- +23.11 for the present operating margin
- +72.48 for the gross margin
The net margin for Globus Medical Inc. stands at +18.59. The total capital return value is set at 13.16, while invested capital returns managed to touch 10.59. Equity return is now at value 10.90, with 9.70 for asset returns.
The receivables turnover for the company is 5.34 and the total asset turnover is 0.51. The liquidity ratio also appears to be rather interesting for investors as it stands at 6.18.
To sum up, Globus Medical Inc. (GMED) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.