Smith & Nephew plc (NYSE: SNN) Testing Investors’ Patience Right Now

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WCM Investment Management LLC recently announced the acquisition of new stake in Smith & Nephew plc (NYSE:SNN). The institutional investor has increased its shareholding in the Healthcare company by 56.96% to 6.59 million shares with purchase of 2.39 million shares. This fresh investment now brings its stake to 1.50% valued currently at $268.74 million. In addition, Nuance Investments LLC raised its holdings by 0.76 million to 4.08 million shares. And Northern Trust Investments, Inc.(. has lifted its position by 22.24% or 0.31 million shares – to 1.73 million shares.

With over 0.46 million Smith & Nephew plc (SNN) shares trading Wednesday and a closing price of $39.05 on the day, the dollar volume was approximately $17.84 million. The shares have shown a positive weekly performance of 2.44% and its price on 07/08/20 lost nearly -0.99%. Currently, there are 435.26M common shares owned by the public and among those 435.08M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for SNN have a consensus price objective of $44.47. The analysts have set the share’s price value over the next 12 months at a high of $54.79 and a low of $35.35 should the stock experience a downside. Incidentally, analysts’ outlook for the Smith & Nephew plc stock is 1.70 for the next 12 months. The average price target is 16.15% above its last price level and an upside to the estimated low will see the stock lose -10.47% over that period. But an upside of 28.73% will see the stock hit the forecast high price target while mean target price for the stock is $43.26.

Insiders at the company have nil transactions over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC).

The top 3 mutual fund holders in Smith & Nephew plc are FMI Large Cap Fund, Nuance Mid Cap Value Fund, and EQ/BlackRock Basic Value Equity P. FMI Large Cap Fund owns 3.04 million shares of the company’s stock, all valued at over $124.06 million. The company sold -0.23 million shares recently to bring their total holdings to about 0.69% of the shares outstanding. Nuance Mid Cap Value Fund bought 32043.0 shares to see its total holdings expand to 1.41 million shares valued at over $57.56 million and representing 0.32% of the shares outstanding. EQ/BlackRock Basic Value Equity P bought 0.79 million shares to bring its total holdings to over 0.79 million shares at a value of $32.22 million. EQ/BlackRock Basic Value Equity P now owns shares totaling to 0.18% of the shares outstanding.

Shares of Smith & Nephew plc (NYSE: SNN) opened at $39.07, down -$0.37 from a prior closing price of $39.44. However, the script later closed the day at $39.05, down -0.99%. The company’s stock has a 5-day price change of 2.44% and 6.14% over the past three months. SNN shares are trading -18.76% year to date (YTD), with the 12-month market performance down to -10.58% lower. It has a 12-month low price of $26.07 and touched a high of $52.26 over the same period. Currently, 0.46 million shares have been traded, compared to an average intraday trading volume of 610.35K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.32%, -3.07%, and -9.46% respectively.

Institutional ownership of Smith & Nephew plc (NYSE: SNN) shares accounts for 10.00% of the company’s 435.26M shares outstanding. Mutual fund holders own 2.21%, while other institutional holders and individual stakeholders account for 7.19% and — respectively.

It has a market capitalization of $17.00B and a beta (3y monthly) value of 0.54. The stock’s trailing 12-month PE ratio is 28.55, while the earnings-per-share (ttm) stands at $1.37. The company has a PEG of 5.19. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.77% over the week and 2.30% over the month.

Analysts forecast that Smith & Nephew plc (SNN) will achieve an EPS of $0 for the current quarter, $0 for the next quarter and $0 for Next Year. The lowest estimate earnings-per-share for the quarter is $0 while analysts give the company a high EPS estimate of $0. Earnings per share for the fiscal year are expected to decrease by -9.60%, and 76.37% over the next financial year. EPS should grow at an annualized rate of 5.50% over the next five years, compared to 4.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by several brokerage firm advisors rate Smith & Nephew plc (SNN) as a “Strong Buy” at a consensus score of 1.70.

Looking at the support for the SNN, a number of firms have released research notes about the stock. Morgan Stanley stated their Overweight rating for the stock in a research note on June 04, 2020. Citigroup coverage for the Smith & Nephew plc (SNN) stock in a research note released on April 14, 2020 offered a Neutral rating with a price target of. Citigroup was of a view on November 21, 2019 that the stock is Buy, while Bernstein gave the stock Outperform rating on November 12, 2019. Berenberg on their part issued Buy rating on July 23, 2019.

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