Traders Buy High Volume of Put Options on Zimmer Biomet (NYSE:ZBH)

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) was the recipient of some unusual options trading activity on Thursday. Stock investors bought 3,587 put options on the stock. This is an increase of 191% compared to the average daily volume of 1,232 put options.

Analysts Set New Price Targets

Several research firms have weighed in on ZBH. Piper Sandler cut Zimmer Biomet from an “overweight” rating to a “neutral” rating and dropped their price objective for the stock from $140.00 to $115.00 in a report on Monday, July 1st. The Goldman Sachs Group started coverage on Zimmer Biomet in a research note on Thursday, May 30th. They issued a “neutral” rating and a $129.00 price target for the company. Morgan Stanley reduced their price objective on shares of Zimmer Biomet from $130.00 to $120.00 and set an “equal weight” rating on the stock in a research report on Monday, July 15th. UBS Group dropped their target price on shares of Zimmer Biomet from $112.00 to $107.00 and set a “sell” rating for the company in a research report on Thursday, August 8th. Finally, Truist Financial reiterated a “hold” rating and set a $117.00 price target on shares of Zimmer Biomet in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $126.41.

Zimmer Biomet Stock Performance

Shares of ZBH opened at $104.47 on Friday. The company has a quick ratio of 0.63, a current ratio of 1.29 and a debt-to-equity ratio of 0.31. The stock has a market cap of $21.49 billion, a P/E ratio of 22.61, a P/E/G ratio of 2.06 and a beta of 1.01. The business’s 50 day moving average price is $110.11 and its 200-day moving average price is $117.07. Zimmer Biomet has a 52 week low of $102.00 and a 52 week high of $133.90.

Zimmer Biomet (NYSE:ZBH) last released its earnings results on Wednesday, August 7th. The medical equipment provider reported $2.01 EPS for the quarter, topping analysts’ consensus estimates of $1.99 by $0.02. The firm had revenue of $1.94 billion for the quarter, compared to analysts’ expectations of $1.94 billion. Zimmer Biomet had a return on equity of 12.86% and a net margin of 13.25%. The company’s quarterly revenue was up 3.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.82 earnings per share. Equities research analysts anticipate that Zimmer Biomet will post 8.06 earnings per share for the current fiscal year.

Zimmer Biomet Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 31st. Shareholders of record on Monday, September 30th will be issued a $0.24 dividend. The ex-dividend date is Monday, September 30th. This represents a $0.96 annualized dividend and a yield of 0.92%. Zimmer Biomet’s dividend payout ratio (DPR) is presently 20.78%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of Zimmer Biomet during the fourth quarter valued at $266,896,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of Zimmer Biomet by 12.9% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 10,642,801 shares of the medical equipment provider’s stock valued at $1,404,638,000 after acquiring an additional 1,215,935 shares during the last quarter. American Century Companies Inc. grew its stake in shares of Zimmer Biomet by 12.6% in the second quarter. American Century Companies Inc. now owns 6,463,845 shares of the medical equipment provider’s stock worth $701,521,000 after acquiring an additional 722,041 shares during the period. Boston Partners lifted its position in Zimmer Biomet by 26.3% during the first quarter. Boston Partners now owns 3,314,939 shares of the medical equipment provider’s stock valued at $437,413,000 after purchasing an additional 691,191 shares during the period. Finally, Magnetar Financial LLC lifted its position in Zimmer Biomet by 58.7% during the second quarter. Magnetar Financial LLC now owns 1,310,265 shares of the medical equipment provider’s stock valued at $142,203,000 after purchasing an additional 484,816 shares during the period. 88.89% of the stock is owned by hedge funds and other institutional investors.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc, together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest.