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.

Stocks to Buy Before a Fed Rate Hike
The central bank is widely expected to hike interest rates on Wednesday
Breaking Down the Quick & Dirty S&P Drop
The SPX fell more than 10% in 50 sessions
Bet on This Medical Device Stock to Break Out
The shares could be poised to break out of recent congestion below $245
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


Former Hedge-Fund Manager Reveals Stunning Research
This stunning research revealed by the former hedge-fund who predicted the last NASDAQ crash could have some Americans thinking twice before hoarding cash.
Inside the Big Moves from Navistar and Rent-A-Center Stocks
Two of today's biggest stock moves are coming from NAV and RCII
Take-Two Levels Up On Analyst Coverage
Shares of TTWO are up after Buckingham Research weighed in
Former Hedge-Fund Manager Reveals Stunning Research
This stunning research revealed by the former hedge-fund who predicted the last NASDAQ crash could have some Americans thinking twice before hoarding cash.