Camber Capital Management surged its exposure to Orthofix in the middle of the company's ongoing efforts to correct financial reports over the past few years and release accurate 2013 reports, according to an Insider Monkey report.
The company discovered a glitch in how they calculated revenue adjustments and reported inventory. Originally scheduled to release their data on Oct. 2, the company is expected to ask for a second extension.
Here are five things to know:
1. Fund manager Stephen Dubois owns around 1.2 million Orthofix shares, significantly more than the 118,700 disclosed in the most recent 13F filings. Camber's stake amasses 6.5 percent of Orthofix's common stock.
2. Orthofix may still be a good investment, according to the report, as the orthopedic market is expected to reach around $4 billion over the next few years. Growth rates are 3 percent. The medical devices industry grew 7 percent year-to-date.
3. Mr. Dubois isn't the only one purchasing more company stock; North Tide Capital headed by Conan Laughlin increased exposure to the company by 60 percent in the past quarter and now has reported 1.8 million shares according to the latest 13F report. Consonance Capital Management also increased its position by 34 percent to 1.47 million shares.
4. The company's consensus rating is "Overweight" with an average target price at $38, significantly higher than the current stock price. The stock opened at $30.85 today with a 52-week high of $36.90. The 52-week low is $19.35.
5. Preliminary second quarter financial results report net sales at $101.6 million, higher than $98 million reported in 2013.