What's Up With Stryker? Director Sells 7k More Shares — 21k in July So Far

Spinal Tech

Ronda Stryker, who serves as Stryker's director, sold 7,000 shares of the company on the open market Monday, July 7, according to a WKRB News & Analysis report.

Ms. Stryker sold 14,000 shares of the company on July 3 in a transaction worth $1.2 million — at the time, the shares were valued at $85.37 per share. The 7,000 shares she sold on Monday were priced at $85.19 per share on average. The total transaction was valued at $596,330.

 

Currently, Ms. Stryker now owns 174,506 shares of the company, valued at $14.8 million. The company's value has gone up over the past few weeks, with Cantor and Fitzgerald raising their price targets $6 dollars on July 1 to $84 per share. The stock currently has a consensus "buy" rating and $82.89 target price.

 

Despite the sales, quarterly hedge fund movements at Stryker remain solid, according to a Tech Insider report. Winton Capital Management increased portfolio participation 33 percent — now owning more than 1 million shares worth $82.4 million — and Soros Fund Management increased portfolio participation 144 percent — now owning 1.09 million shares valued at $89.5 million.

 

Stryker has been making several changes since January, ramping up their transactions over the past few weeks. The company acquired Small Bone Innovations for $375 million announced on June 30 and then sold its bone morphogenetic protein-7 product line to Mariel Therapeutics earlier this week for an undisclosed sum. Earlier in the year Stryker acquired Patient Safety Technologies, Pivot Medical and Berchtold in April.

 

Stryker is currently among the leaders in the orthopedic device industry, but recent acquisition announcements could strengthen its competitors. Zimmer announced plans to acquire Biomet — although the FTC has asked for more information on both companies before approving the transaction — and Medtronic acquired Covidien. To stay competitive, Stryker may need to make bolder moves in the future — one possible opportunity being the acquisition of perennial target Smith & Nephew.

 

For the rest of the year, Stryker expects organic revenue growth at 4.5 percent to 6 percent, according to the most recent financial report. The company's CEO Kevin Lobo expects an unfavorable foreign exchange rate to impact net sales by less than 1 percent, and feels the company's growth is key to success in the future. The spine business net sales reached $420 million in the first quarter, an increase over the same period last year. The growth was attributed to increased unit volume and changes in product mix, as well as the company's acquisitions.

 

On July 9, the company's stock price opened at $84.09 with a market cap of $31.8 billion. The company's 52 week high is $86.93 and low is $65.81.

 

More Articles on Orthopedic Devices:
Medtronic to Cut 80 Minnesota Jobs
Exactech EVP Sells 12k More Shares in $324k Transaction
4 New Mazor Robotic Spine Surgery Systems Sold in Q2

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