Zacks Investment Research Lowers ABIOMED, Inc. (ABMD) to Hold

ABIOMED, Inc. (NASDAQ:ABMD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday, August 7th.

According to Zacks, “Over the last one month, Abiomed has been trading above the broader Medical Instruments industry. Management expects that robust demand for the Impella product line will continue to drive Abiomed’s top line. The company’s expanding product portfolio will improve penetration into both the prophylactic high-risk PCI and cardiogenic shock patient market. This is evident from the fact that both Impella 2.5 and CP continue to add centers in the U.S. The company also announced the successful launch of the Abiomed Impella Quality Program in fiscal 2017 to improve clinical outcomes. Also, cost-savings efforts remain encouraging. Furthermore, a rising estimate revision trend for the current year indicates a pocket of opportunity for the stock. However, intensifying competition in the niche markets is likely to mar prospects over the long haul.”

A number of other brokerages also recently commented on ABMD. Morgan Stanley reissued an “equal weight” rating and issued a $140.00 price target (up previously from $135.00) on shares of ABIOMED in a report on Monday, July 10th. Jefferies Group LLC increased their target price on ABIOMED from $165.00 to $175.00 and gave the stock a “buy” rating in a report on Friday, August 4th. BidaskClub downgraded ABIOMED from a “buy” rating to a “hold” rating in a report on Tuesday, July 25th. Piper Jaffray Companies reaffirmed an “overweight” rating and set a $160.00 target price (up previously from $145.00) on shares of ABIOMED in a report on Thursday, July 27th. Finally, William Blair reaffirmed an “outperform” rating on shares of ABIOMED in a report on Thursday, June 8th. Two research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $158.29.

Shares of ABIOMED (NASDAQ ABMD) traded down 1.01% during trading on Monday, reaching $152.14. The company had a trading volume of 253,696 shares. The firm has a 50-day moving average of $147.23 and a 200 day moving average of $132.32. ABIOMED has a 52 week low of $95.14 and a 52 week high of $157.41. The firm has a market capitalization of $6.68 billion, a price-to-earnings ratio of 88.97 and a beta of 0.20.

ABIOMED (NASDAQ:ABMD) last issued its quarterly earnings results on Thursday, July 27th. The medical equipment provider reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.42 by $0.03. The firm had revenue of $132.47 million during the quarter, compared to the consensus estimate of $130.83 million. ABIOMED had a return on equity of 13.03% and a net margin of 16.13%. ABIOMED’s revenue for the quarter was up 28.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.29 earnings per share. On average, equities research analysts forecast that ABIOMED will post $2.24 earnings per share for the current year.

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In related news, Director Paul Thomas sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $154.71, for a total value of $1,547,100.00. Following the sale, the director now owns 12,172 shares of the company’s stock, valued at approximately $1,883,130.12. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO David M. Weber sold 16,500 shares of the firm’s stock in a transaction that occurred on Monday, July 31st. The stock was sold at an average price of $147.63, for a total value of $2,435,895.00. Following the completion of the sale, the chief operating officer now directly owns 125,122 shares in the company, valued at approximately $18,471,760.86. The disclosure for this sale can be found here. Company insiders own 7.00% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. Dynamic Technology Lab Private Ltd acquired a new stake in ABIOMED during the second quarter valued at approximately $669,000. Koch Industries Inc. boosted its stake in ABIOMED by 40,431.3% in the second quarter. Koch Industries Inc. now owns 799,277 shares of the medical equipment provider’s stock valued at $794,000 after buying an additional 797,305 shares in the last quarter. Verition Fund Management LLC acquired a new stake in ABIOMED during the second quarter valued at approximately $322,000. Ameritas Investment Partners Inc. boosted its stake in ABIOMED by 2.2% in the second quarter. Ameritas Investment Partners Inc. now owns 12,195 shares of the medical equipment provider’s stock valued at $1,748,000 after buying an additional 259 shares in the last quarter. Finally, Castleark Management LLC boosted its stake in ABIOMED by 35.2% in the second quarter. Castleark Management LLC now owns 302,345 shares of the medical equipment provider’s stock valued at $43,326,000 after buying an additional 78,648 shares in the last quarter. 91.09% of the stock is currently owned by institutional investors and hedge funds.

About ABIOMED

ABIOMED, Inc is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart.

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