CONMED Corporation (NYSE: CNMD) has received a significant downgrade from analysts, with Zacks Research lowering its rating from “hold” to “strong sell.” This decision, announced on November 6, 2023, reflects growing concerns about the company’s stock performance and future profitability.
Analysts from several financial institutions have recently adjusted their outlooks on CONMED. Notably, JPMorgan Chase & Co. revised its price target from $58.00 to $52.00, maintaining a “neutral” rating. Similarly, Piper Sandler decreased its price target from $68.00 to $55.00, while issuing an “overweight” rating. Other firms, including Bank of America, which lowered its target from $65.00 to $52.00, and Wells Fargo & Company, which cut its target from $57.00 to $47.00, have echoed these sentiments with “neutral” and “equal weight” ratings, respectively.
As of now, one analyst has assigned a “buy” rating, while five have issued “hold” ratings and two have classified the stock as a “sell.” According to MarketBeat, CONMED currently holds an average rating of “Reduce” with a consensus target price of $53.67.
Quarterly Earnings Report Highlights
CONMED reported its quarterly earnings on November 5, 2023. The company posted earnings of $1.08 per share, surpassing analyst expectations of $1.05 by $0.03. The firm achieved revenues of $337.93 million for the quarter, exceeding the forecast of $334.76 million. This marks a 6.7% increase in revenue compared to the same quarter last year, where the earnings per share stood at $1.05.
The company has also set its full-year guidance for fiscal year 2025 at an earnings per share range of $4.480 to $4.530. Analysts predict that CONMED will deliver an average earnings per share of $4.35 for the current year.
Institutional Investor Activity
Recent movements among institutional investors indicate a shift in confidence regarding CONMED. Keeler Thomas Management LLC acquired a new position in the company valued at approximately $1.08 million during the second quarter. Likewise, Dynamic Technology Lab Private Ltd entered a new position valued at around $659,000.
Further bolstering its stake, Aurora Investment Counsel increased its holdings by 39.3%, now owning 24,580 shares worth about $1.28 million. Nordea Investment Management AB slightly raised its holdings by 0.7%, bringing its total to 75,441 shares valued at $3.95 million. Additionally, Ninety One UK Ltd also acquired a new position valued at approximately $1.00 million.
About CONMED
Founded in 1970 and headquartered in Utica, New York, CONMED Corporation specializes in medical technology, offering a diverse range of surgical devices and accessories tailored for minimally invasive procedures. The company serves various medical specialties, including orthopedics, general surgery, gastroenterology, and gynecology. Its operations are divided into two primary segments: Orthopedics, and Visualization & Energy.
The recent downgrade and mixed analyst ratings highlight an increasingly cautious outlook for CONMED as it navigates a challenging market environment. Investors will be closely monitoring upcoming performance metrics and strategic initiatives as the company aims to enhance its market position.
