Medical Device Stock Burns Short Sellers

Wright Medical posted strong quarterly sales

by Josh Selway

Published on Aug 9, 2018 at 9:58 AM

Shares of Wright Medical Group Inc (NASDAQ:WMGI) -- a medical device company providing products such as bone fixation devices and joint implants -- are trading up 7.6% today at $28.30, putting them in territory not seen since last September, thanks to a strong earnings release. Wright Medical posted surprising sales growth and raised its full-year guidance, with CEO Robert Palmisano calling out an impressive performance from the company's shoulder business in particular.

This is the second straight quarter WMGI stock has jumped higher after earnings, with the shares soaring adding more than 12% the day after reporting back in May. Longer term, the trading action for the equity has been choppy since it began trading on the Nasdaq back in 2011. It rallied to the $30 mark that same year, but didn't revisit that round-number level until peaking at $31.53 back in April 2017, and the stock again topped out there last September.

Meanwhile, a few analysts have since upped their price targets on the security, including Guggenheim, which set the highest mark of the bunch at $35. Most of those covering WMGI were already bullish, with eight of the 11 tracking the shares sporting "strong buy" recommendations. The average 12-month price target, meanwhile, is $31.42.

On the other hand, a number of short sellers have targeted the healthcare stock. Short interest increased 15.8% in the last two reporting periods, and now represents almost 17% of the total float. Short-covering tailwinds could help fuel more upside for the equity going forward.

Semiconductor Sell-Off Could be Good News for This Chip Stock
Pullbacks to the 320-day moving average have marked buying opportunities
Time To Bet On a Netflix Stock Rally
The shares are trading near a trendline that has historically bullish implications
Molina Healthcare Stock Could Make a Big Move Higher
A "buy" signal is flashing for MOH again
From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Tax Plan is Never Going to Grow the Economy… Unless This Is Fixed First
Are you ready for a potential economic reset?
Amedisys Carves Out New Highs on Oppenheimer's Latest Hike
AMED nabbed another new record high earlier today
Walmart Earnings, Tesla Share Spotlight With Turkey, Trade
The retailer's earnings have the Dow headed toward a weekly win
The Tax Plan is Never Going to Grow the Economy… Unless This Is Fixed First
Are you ready for a potential economic reset?