Analysts Assign $24 Target Price for OrthoPediatrics Shares

OrthoPediatrics Corp. (NASDAQ: KIDS) has received an average rating of “Moderate Buy” from ten analysts covering the stock, as reported by Marketbeat. Among these analysts, one has given the stock a sell rating, another has issued a hold rating, and eight have designated it as a buy. The consensus for the next twelve months places the company’s share price target at approximately $24.00.

Analysts have been active in updating their projections for OrthoPediatrics. On October 10, 2023, JMP Securities revised its target price from $35.00 to $25.00 while maintaining a “market outperform” rating. Needham & Company LLC similarly lowered their price target from $42.00 to $26.00 and categorized the stock as a buy. Lake Street Capital made adjustments as well, reducing their target from $37.00 to $34.00 with a buy rating. Meanwhile, Piper Sandler set a new price target of $22.00 on the same day, also issuing an “overweight” rating. Citigroup reaffirmed an “outperform” rating for the shares in a research note dated the same day.

Recent Financial Performance

OrthoPediatrics reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of ($0.24), which exceeded the consensus estimate of ($0.26) by $0.02. The company generated revenue of $61.25 million during the quarter, falling short of analysts’ expectations of $63.63 million. The firm recorded a negative net margin of 20.06% and a negative return on equity of 6.86%. Analysts anticipate that OrthoPediatrics will achieve an EPS of (0.93) for the current fiscal year.

Institutional Investor Activity

Recent movements among institutional investors indicate a growing interest in OrthoPediatrics. Russell Investments Group Ltd. significantly increased its stake by 433.1% during the third quarter, acquiring an additional 1,139 shares to reach a total of 1,402 shares valued at $26,000. Another firm, Caption Management LLC, entered the market with a new stake valued at approximately $54,000.

BNP Paribas Financial Markets also boosted its position by 60.2% in the third quarter, bringing its total holdings to 3,288 shares, which are now worth $61,000. Additionally, Los Angeles Capital Management LLC invested around $220,000 in a new stake during the second quarter, while MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings by 6.9% in the first quarter.

Currently, institutional investors and hedge funds own 69.05% of OrthoPediatrics’ stock, indicating strong institutional confidence in the company’s potential.

About OrthoPediatrics Corp., founded in 2007 and headquartered in Warsaw, Indiana, the company specializes in medical devices tailored for pediatric orthopedic solutions. Their product portfolio includes implants and instruments designed to treat various conditions, such as trauma, deformity correction, spine disorders, and sports injuries. Notable products include locking plates and screws for extremity reconstruction and the MAGEC Magnetic Growth Rod, used for treating early-onset scoliosis.

OrthoPediatrics continues to navigate a competitive landscape while focusing on its mission to improve pediatric orthopedic care.