Globus Medical (NYSE:GMED) to Repurchase $500.00 million in Outstanding Stock

Globus Medical (NYSE:GMED) announced that its Board of Directors has approved a stock buyback plan on Thursday, May 15th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization permits the medical device company to purchase up to 6.3% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Barclays raised their target price on shares of Globus Medical from $100.00 to $103.00 and gave the stock an “overweight” rating in a research note on Monday, February 24th. Needham & Company LLC reissued a “hold” rating on shares of Globus Medical in a report on Tuesday, March 18th. Piper Sandler dropped their price objective on shares of Globus Medical from $100.00 to $80.00 and set an “overweight” rating for the company in a research note on Friday, May 9th. Truist Financial lowered their target price on shares of Globus Medical from $80.00 to $68.00 and set a “hold” rating for the company in a research note on Monday. Finally, Wells Fargo & Company lowered their target price on shares of Globus Medical from $95.00 to $93.00 and set an “overweight” rating for the company in a research note on Friday, February 21st. Three research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $94.00.

Globus Medical Stock Performance

NYSE:GMED opened at $57.76 on Friday. The company has a fifty day moving average of $70.72 and a two-hundred day moving average of $79.43. The stock has a market capitalization of $7.94 billion, a PE ratio of 77.01, a P/E/G ratio of 1.61 and a beta of 1.32. Globus Medical has a fifty-two week low of $54.48 and a fifty-two week high of $94.93.

Globus Medical (NYSE:GMED) last posted its quarterly earnings data on Thursday, May 8th. The medical device company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.74 by ($0.06). The company had revenue of $598.12 million for the quarter, compared to analyst estimates of $629.74 million. Globus Medical had a return on equity of 10.83% and a net margin of 4.09%. The business’s revenue was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.72 earnings per share. Research analysts forecast that Globus Medical will post 3.44 earnings per share for the current year.

About Globus Medical

Globus Medical, Inc, a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives.