Globus Medical Inc (NYSE: GMED) has seen a rise in its stock price by 5.94 in relation to its previous close of 75.58. However, the company has experienced a 6.66% gain in its stock price over the last five trading sessions. zacks.com reported 2024-11-06 that Globus Medical delivers massive sales and earnings growth in the third quarter of 2024. However, margins contract.
Is It Worth Investing in Globus Medical Inc (NYSE: GMED) Right Now?
Globus Medical Inc (NYSE: GMED) has a price-to-earnings ratio of 120.79x that is above its average ratio. Additionally, the 36-month beta value for GMED is 1.16. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 3 rating it as “overweight,” 7 rating it as “hold,” and 1 rating it as “sell.”
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The public float for GMED is 112.15M and currently, short sellers hold a 2.53% ratio of that float. The average trading volume of GMED on November 06, 2024 was 778.34K shares.
GMED’s Market Performance
The stock of Globus Medical Inc (GMED) has seen a 6.66% increase in the past week, with a 14.29% rise in the past month, and a 8.32% gain in the past quarter. The volatility ratio for the week is 2.35%, and the volatility levels for the past 30 days are at 2.00% for GMED. The simple moving average for the last 20 days is 8.42% for GMED stock, with a simple moving average of 25.98% for the last 200 days.
Analysts’ Opinion of GMED
Many brokerage firms have already submitted their reports for GMED stocks, with Wells Fargo repeating the rating for GMED by listing it as a “Overweight.” The predicted price for GMED in the upcoming period, according to Wells Fargo is $78 based on the research report published on August 07, 2024 of the current year 2024.
Piper Sandler, on the other hand, stated in their research note that they expect to see GMED reach a price target of $80, previously predicting the price at $60. The rating they have provided for GMED stocks is “Overweight” according to the report published on May 20th, 2024.
BTIG Research gave a rating of “Buy” to GMED, setting the target price at $60 in the report published on March 18th of the current year.
GMED Trading at 11.46% 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 able to rebound, for now settling with 5.18% of gains for the given period.
Volatility was left at 2.00%, however, over the last 30 days, the volatility rate increased by 2.35%, as shares surge +15.52% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.44% upper at present.
During the last 5 trading sessions, GMED rose by +8.39%, which changed the moving average for the period of 200-days by +49.06% in comparison to the 20-day moving average, which settled at $73.92. In addition, Globus Medical Inc saw 50.26% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GMED starting from Davidar David D, who sale 30,000 shares at the price of $75.04 back on Oct 16 ’24. After this action, Davidar David D now owns 536,275 shares of Globus Medical Inc, valued at $2,251,203 using the latest closing price.
Davidar David D, the Director of Globus Medical Inc, sale 20,000 shares at $75.03 during a trade that took place back on Oct 16 ’24, which means that Davidar David D is holding 185,967 shares at $1,500,610 based on the most recent closing price.
Stock Fundamentals for GMED
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.56 for the gross margin
The net margin for Globus Medical Inc stands at 0.04. The total capital return value is set at 0.04. Equity return is now at value 2.22, with 1.75 for asset returns.
Based on Globus Medical Inc (GMED), the company’s capital structure generated 0.12 points at debt to capital in total, while cash flow to debt ratio is standing at 0.78. The debt to equity ratio resting at 0.13. The interest coverage ratio of the stock is -67.88.
Currently, EBITDA for the company is 401.03 million with net debt to EBITDA at -0.24. When we switch over and look at the enterprise to sales, we see a ratio of 4.33. The receivables turnover for the company is 4.21for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.51.
Conclusion
In conclusion, Globus Medical Inc (GMED) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
