Edwards Lifesciences (NYSE:EW) Sets New 1-Year High After Better-Than-Expected Earnings

Edwards Lifesciences Corporation (NYSE:EW) shares hit a new 52-week high on Wednesday following a better than expected earnings announcement. The stock traded as high as $99.68 and last traded at $99.1210, with a volume of 415,242 shares trading hands. The stock had previously closed at $95.19.

The medical research company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.06. The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.68 billion. Edwards Lifesciences had a net margin of 15.30% and a return on equity of 16.25%. The firm’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.67 EPS.

Edwards Lifesciences News Roundup

Here are the key news stories impacting Edwards Lifesciences this week:

• Positive Sentiment: Edwards reported Q3 revenue of $1.72 billion, up 11.2% year over year, and adjusted EPS of $0.80, beating estimates of $1.68 billion and $0.74. Growth in structural heart therapies helped drive the results; TMTT sales rose 45.6% and TAVR sales 8.8%. The company raised its full-year outlook, including adjusted EPS guidance of $2.97–$3.05. Read More.
• Positive Sentiment: New PROGRESS Trial data found TAVR reduced combined death or heart-failure outcomes versus active surveillance in at-risk patients with moderate aortic stenosis, with fewer heart-failure hospitalizations and better quality-of-life measures. Positive data, alongside expanded Medicare reimbursement, could support earlier use and more procedures. Read More.
• Positive Sentiment: Analysts responded to the results by lifting price targets and, in some cases, upgrading ratings. JPMorgan raised its target to $120 from $105, UBS to $118 from $110, and several other firms also increased targets; Baird and Truist upgraded the stock. The cluster of revisions signals improved confidence in EW’s outlook. Read More.
• Negative Sentiment: Management expects greater competition in transcatheter aortic valve replacement (TAVR). Competitive pressure could weigh on future growth or margins, even as current sales and trial results are encouraging. Read More.

Analysts Set New Price Targets

EW has been the subject of a number of research analyst reports. Raymond James Financial lifted their target price on shares of Edwards Lifesciences from $100.00 to $103.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. The Goldman Sachs Group increased their price target on Edwards Lifesciences from $98.00 to $102.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Mizuho set a $120.00 price target on Edwards Lifesciences in a report on Thursday. Rothschild & Co Redburn lifted their price objective on Edwards Lifesciences from $99.00 to $102.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Finally, Leerink Partners boosted their price objective on Edwards Lifesciences from $101.00 to $112.00 and gave the stock an “outperform” rating in a research note on Thursday. Twenty-three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Edwards Lifesciences currently has a consensus rating of “Moderate Buy” and a consensus target price of $108.88.

Insider Activity at Edwards Lifesciences

In other Edwards Lifesciences news, VP Annette Brüls sold 2,644 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $89.98, for a total value of $237,907.12. Following the transaction, the vice president directly owned 17,984 shares in the company, valued at approximately $1,618,200.32. This trade represents a 12.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Andrew M. Dahl sold 544 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $91.06, for a total value of $49,536.64. Following the completion of the transaction, the senior vice president owned 14,868 shares in the company, valued at $1,353,880.08. The trade was a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 5,045 shares of company stock valued at $451,596 over the last quarter. Corporate insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Edwards Lifesciences

Several large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Edwards Lifesciences in the second quarter valued at about $5,318,092,000. Varma Mutual Pension Insurance Co bought a new stake in Edwards Lifesciences during the second quarter worth about $11,168,000. Conway Capital Management Inc. bought a new stake in Edwards Lifesciences during the second quarter worth about $954,000. Commerce Bank acquired a new stake in Edwards Lifesciences during the second quarter worth about $3,121,000. Finally, Assenagon Asset Management S.A. grew its stake in Edwards Lifesciences by 50.0% during the third quarter. Assenagon Asset Management S.A. now owns 2,719,271 shares of the medical research company’s stock worth $234,727,000 after buying an additional 906,345 shares in the last quarter. Institutional investors and hedge funds own 79.46% of the company’s stock.

Edwards Lifesciences Trading Up 1.3%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 3.77 and a current ratio of 4.52. The stock has a market capitalization of $57.99 billion, a P/E ratio of 56.90, a price-to-earnings-growth ratio of 2.60 and a beta of 0.85. The firm’s fifty day simple moving average is $88.68 and its 200 day simple moving average is $85.69.

About Edwards Lifesciences

Edwards Lifesciences Corporation (NYSE:EW) is a medical technology company focused on therapies for structural heart disease and critical care. The company develops and manufactures products designed to treat conditions affecting the heart’s valves, including aortic, mitral and tricuspid valve disorders.

Its portfolio includes transcatheter aortic valve replacement systems, transcatheter mitral and tricuspid therapies, surgical heart valves and valve-repair technologies. Edwards also provides related delivery systems and other medical devices used by physicians in minimally invasive and open-heart procedures.

Founded in 1958 by Miles Lowell Edwards, the company is headquartered in Irvine, California, and serves healthcare providers and patients internationally.