Shares of Stryker Corporation (NYSE:SYK) are currently rated as a “Moderate Buy” by eighteen research firms, according to analysis from Marketbeat. The consensus price target for the stock stands at $431.83. Of the analysts covering Stryker, six have given a hold rating while twelve have issued buy ratings. This reflects a generally positive outlook among market experts regarding the company’s future performance.
Recent reports on Stryker’s stock have varied slightly, highlighting the dynamic nature of the market. For instance, Weiss Ratings reaffirmed a “hold (c+)” rating on the shares in a note released on Monday. Meanwhile, Wall Street Zen downgraded Stryker from a “buy” to a “hold” on December 13, 2023. Analysts from Rothschild & Co initiated coverage on September 18, 2023, assigning a “neutral” rating along with a price target of $420.00. On the other hand, Sanford C. Bernstein maintained an “outperform” rating in their report dated November 3, 2023.
Institutional Investor Activity
Recent institutional trading activity indicates a growing interest in Stryker’s stock. In the second quarter, Two Point Capital Management Inc. acquired a new stake valued at approximately $7.3 million. Another significant move came from Alecta Tjanstepension Omsesidigt, which increased its holdings by 82.0%, bringing its total to 458,300 shares worth $181.2 million after purchasing an additional 206,500 shares. Other notable investors include SVB Wealth LLC and AXQ Capital LP, which also acquired new stakes in the company. Currently, institutional investors and hedge funds hold approximately 77.09% of Stryker’s stock.
The stock opened at $353.03 on Friday, reflecting a market capitalization of $135.01 billion. The company has shown resilience with a twelve-month low of $329.16 and a high of $406.19. Stryker’s price-to-earnings (P/E) ratio is reported at 46.39 with a P/E/G ratio of 2.50 and a beta of 0.89.
Recent Financial Performance and Dividend Increase
Stryker recently announced its earnings results for the third quarter, revealing earnings per share (EPS) of $3.19, surpassing analysts’ expectations of $3.13 by $0.06. The company reported a revenue of $6.06 billion, above the anticipated $6.04 billion. This marks a year-over-year revenue increase of 10.2%, compared to $2.87 EPS during the same quarter last year. Looking ahead, Stryker has set its fiscal year 2025 guidance at an EPS range of $13.50 to $13.60.
In a move to further reward shareholders, Stryker announced a quarterly dividend of $0.88, payable on January 30, 2024. Shareholders of record as of December 31, 2023, will be eligible for this dividend, which represents an annualized total of $3.52 and a yield of 1.0%. This is an increase from the previous quarterly dividend of $0.84, with a payout ratio of 44.15%.
Stryker Corporation continues to strengthen its position as a leading player in the medical technology sector, operating through two main segments: MedSurg and Neurotechnology, and Orthopaedics and Spine. The company provides a range of innovative products, including implants for total joint replacements and trauma surgeries, demonstrating its commitment to advancing healthcare solutions.
