CONMED Reports Strong Q1 Results and Insider Selling Activities
CONMED, a leading global medical technology company, reported impressive results for the first quarter this year. The company’s earnings per share (EPS) of $0.66 exceeded analysts’ expectations by $0.06, while its revenue reached $295.47 million compared to the estimated $266.66 million, representing a 21.9% growth from the same quarter last year.
Moreover, despite a negative net margin of 7.71%, CONMED delivered a positive return on equity of 11.39%. The company’s strong performance can be attributed to several factors including increased demand for its products and services globally amid the ongoing COVID-19 pandemic.
However, not all news related to CONMED is positive as the company’s insiders have been actively selling their shares in recent months. On May 1st, Director Brian Concannon sold 2,072 shares of the company’s stock for an average price of $125 each, totalling $259,000 in cash proceeds.
On March 13th, CFO Todd W. Garner sold 30,000 shares at an average price of $90.93 per share totalizing $2,727,900 in value.
It appears that insider selling activities accelerated throughout last quarter with insiders disposing of a total of 68,531 CONMED shares worth approximately $7.6 million.
Despite these transactions raising some eyebrows among market observers and investors concerning management confidence levels and potential future prospects for the business unit(s), it remains unclear whether these insider sell-offs are related to any material non-public information or are strictly for personal liquidity purposes.
CONMED’s shareholders will be keenly monitoring both sides of the coin as they examine forward guidance during upcoming results announcements alongside recent shareholder proposals addressing practices within executive compensation schemes instituted by companies operating within the medical technology industry sector.
Trading at just over USD122 per share on the NYSE, and with a market capitalization of $3.76 billion, CONMED’s Q1 results appear to be solid but analysts and investors alike will be keeping a watchful eye on any further insider actions that may affect the performance capabilities of this medical technology pioneer throughout 2021.
CONMED’s Q2 2023 EPS Estimates Cut by Zacks Research, But Optimism Remains for Future Trading Potential.
CONMED (NYSE:CNMD) recently had its Q2 2023 EPS estimates cut by Zacks Research analysts, stating that the company is predicted to earn $0.78 per share for the quarter. This figure is down from their previous estimate of $0.79, signalling a decrease in earnings for the company. According to reports, the consensus estimate for CONMED’s full-year earnings currently stands at $3.31 per share. The research from Zacks also included projections for Q3 2023 earnings, FY2024 earnings, Q1 2025 earnings and FY2025 earnings, with estimated figures ranging from $0.79 EPS to $5.33 EPS.
In recent weeks, several other equities analysts have also weighed in on CNMD’s performance. Needham & Company LLC raised their price target on shares of CONMED from $122.00 to $135.00 as part of a research report published on April 27th, whilst shares received a boost from Piper Sandler who raised their own target price for the stock from $118.00 to $128.00 in a report released on the same day.
Looking at hedge funds and institutional investors, it seems that there has been some fluctuation of activity surrounding CNMD shares too; Earnest Partners LLC increased its stake in the company by 16.3% during Q4 2020 while Norges Bank made a new purchase valued at approximately $15,964,000 around the same time period.
Despite some concerns over future profits being raised by industry analyses and media outlets alike – with Zacks researchers saying that expectations have been lowered somewhat – there remains an optimistic outlook towards CONMED’s trading potential overall with the majority consensus being “Moderate Buy”. Overall this means investors are still showing confidence in CNMDs growth strategy going forward albeit conservatively.
In conclusion, despite relatively small dips projected over specific quarters, the outlook for CONMED remains positive and according to industry averages represented by Zacks research and multiple market analysts, it is expected that investors will continue to hold strong on CNMD’s stock.
