Uncovering Institutional Buying In Boston Scientific Corporation (NYSE: BSX)

DE Stock
DE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Boston Scientific Corporation (NYSE:BSX). The institutional investor has increased its shareholding in the Healthcare company by 1.56% to 106.53 million shares with purchase of 1.63 million shares. This fresh investment now brings its stake to 7.46% valued currently at $4.11 billion. In addition, Capital Research & Management Co.. raised its holdings by 3.61 million to 84.36 million shares. And BlackRock Fund Advisors has lifted its position by 3.46% or 2.27 million shares – to 67.98 million shares.

With over 7.45 million Boston Scientific Corporation (BSX) shares trading Monday and a closing price of $41.02 on the day, the dollar volume was approximately $305.72 million. The shares have shown a positive weekly performance of 5.34% and its price on 08/31/20 lost nearly -0.02%. Currently, there are 1.43B common shares owned by the public and among those 1.43B 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: 24 analysts who have offered their price forecasts for BSX have a consensus price objective of $46.23. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $43.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Boston Scientific Corporation stock is 1.60 for the next 12 months. The average price target is 11.27% above its last price level and an upside to the estimated low will see the stock gain 4.6% over that period. But an upside of 17.96% will see the stock hit the forecast high price target while mean target price for the stock is $46.50.

Insiders at the company have transacted a total of 308 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 143 of these insider trades were purchases, accounting for 1,244,776 shares. Insider sales of the common stock occurred on 165 occasions, with total insider shares sold totaling 855,933 shares.

The top 3 mutual fund holders in Boston Scientific Corporation are Vanguard Total Stock Market Index, Vanguard Health Care Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 40.53 million shares of the company’s stock, all valued at over $1.56 billion. The company sold 71486.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard Health Care Fund bought 4.43 million shares to see its total holdings expand to 36.68 million shares valued at over $1.41 billion and representing 2.57% of the shares outstanding. Vanguard 500 Index Fund sold -0.17 million shares to bring its total holdings to over 29.46 million shares at a value of $1.14 billion. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of Boston Scientific Corporation (NYSE: BSX) opened at $40.93, down -$0.1 from a prior closing price of $41.03. However, the script later closed the day at $41.02, down -0.02%. The company’s stock has a 5-day price change of 5.34% and 9.27% over the past three months. BSX shares are trading -9.29% year to date (YTD), with the 12-month market performance down to -4.00% lower. It has a 12-month low price of $24.10 and touched a high of $46.62 over the same period. Currently, 7.45 million shares have been traded, compared to an average intraday trading volume of 9.38 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.92%, 9.64%, and 6.21% respectively.

Institutional ownership of Boston Scientific Corporation (NYSE: BSX) shares accounts for 94.40% of the company’s 1.43B shares outstanding. Mutual fund holders own 36.36%, while other institutional holders and individual stakeholders account for 57.50% and 1.45% respectively.

It has a market capitalization of $58.33B and a beta (3y monthly) value of 0.95. The earnings-per-share (ttm) stands at -$0.09. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.20% over the week and 1.90% over the month.

Analysts forecast that Boston Scientific Corporation (BSX) will achieve an EPS of $0.24 for the current quarter, $0.4 for the next quarter and $1.66 for 2021. The lowest estimate earnings-per-share for the quarter is $0.11 while analysts give the company a high EPS estimate of $0.32. Comparatively, EPS for the current quarter was $0.39 a year ago. Earnings per share for the fiscal year are expected to decrease by -63.00%, and 65.21% over the next financial year. EPS should shrink at an annualized rate of 8.51% over the next five years, compared to 46.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 24 brokerage firm advisors rate Boston Scientific Corporation (BSX) as a “Strong Buy” at a consensus score of 1.60. Specifically, 20 Wall Street analysts polled rate the stock as a buy, while 2 of the 24 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the BSX, a number of firms have released research notes about the stock. SVB Leerink stated their Mkt Perform rating for the stock in a research note on April 22, 2020, with the firm’s price target at $40. Goldman coverage for the Boston Scientific Corporation (BSX) stock in a research note released on April 01, 2020 offered a Buy rating with a price target of $38. Citigroup was of a view on March 05, 2020 that the stock is Buy, while Goldman gave the stock Neutral rating on February 13, 2020, issuing a price target of $46. BTIG Research on their part issued Buy rating on February 06, 2020.


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