CONMED Corporation (NYSE: CNMD) has received a downgrade from equities research analysts at Zacks Research, who shifted their rating from “hold” to “strong sell.” This change, reported on November 6, 2023, reflects growing concerns about the company’s stock performance amid recent financial developments.
Multiple analysts have recently reassessed their positions on CONMED, further complicating its market outlook. JPMorgan Chase & Co. lowered their price target from $58.00 to $52.00 while maintaining a “neutral” rating. Similarly, Piper Sandler adjusted their price target from $68.00 to $55.00 but kept an “overweight” rating. On the other hand, Bank of America reduced their price objective from $65.00 to $52.00 and also set a “neutral” rating. Wells Fargo & Company issued a price decrease from $57.00 to $47.00, categorizing the stock as “equal weight.”
The consensus among analysts indicates a cautious approach, with one analyst rating the stock as a Buy, five issuing Hold ratings, and two providing Sell ratings. According to MarketBeat, the current average rating for CONMED is “Reduce,” with an average target price of $53.67.
Recent Financial Performance
CONMED recently reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $1.08, exceeding analysts’ expectations of $1.05 by $0.03. The company recorded a net margin of 4.75% and a return on equity of 14.22%. Revenue for the quarter stood at $337.93 million, surpassing the consensus estimate of $334.76 million. This performance marks a 6.7% increase in revenue compared to the same quarter last year, where the company reported an EPS of $1.05.
Looking ahead, CONMED has projected its fiscal year 2025 EPS guidance to be between $4.480 and $4.530, while analysts predict the company will achieve an EPS of $4.35 for the current year.
Institutional Investments Shift
Recent changes in institutional trading reflect a dynamic investment landscape for CONMED. Notably, Keeler Thomas Management LLC acquired a new position valued at approximately $1,081,000 in the second quarter. Dynamic Technology Lab Private Ltd also entered a new position worth around $659,000.
In addition, Aurora Investment Counsel increased its stake in CONMED by 39.3% during the same period, owning 24,580 shares valued at $1,280,000 after purchasing an additional 6,930 shares. Nordea Investment Management AB slightly grew its holdings by 0.7%, holding 75,441 shares now valued at $3,948,000. Finally, Ninety One UK Ltd also acquired a new position in the company valued at about $1,002,000.
Founded in 1970 and headquartered in Utica, New York, CONMED Corporation specializes in developing and manufacturing surgical devices and accessories for minimally invasive procedures across various medical fields, including orthopedics, general surgery, gastroenterology, and gynecology.
As the stock market reacts to these developments and analysts continue to adjust their ratings, the future trajectory of CONMED remains a focal point for investors and market watchers alike.
