We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Merit Medical (MMSI) to Refinance Debt via Share Offering
Read MoreHide Full Article
South Jordan, UT-based Merit Medical Systems, Inc. (MMSI - Free Report) announced that it has commenced a follow on public offering of its common stock. The company expects to use the proceeds from the offering to repay debt under its existing credit facility.
Stock Performance
The price performance of Merit Medical has been encouraging of late. Over the last three months, the stock gained 17.55%, outshining the Zacks classified Medical/Dental-Supplies sub-industry’s gain of roughly 8.43%. Furthermore, the stock’s current return is higher than the S&P 500’s return of 5.32% over the same time frame.
Coming to the estimate revision trend of the stock, one analyst raised estimates in the last month compared to no movement in the opposite direction for the full year. This justifies the stock’s Zacks Rank #1 (Strong Buy).
Details of Public Offering
Coming back to the news, the company plans to offer $125.0 million of common stock for the follow on offering. However, the terms of the offering is yet to be decided. As of Dec 31, 2016, the company had cash and cash equivalents worth $19.2 million versus $4.2 million in the year-ago period. Long-term debt was $314.4 million versus $197.6 million in the year-ago period.
Going forward, we are upbeat about Merit Medical’s HeRo platform. The launch of the proprietary Super HeRO and HeRO Ally products also brought along significant opportunities for the company. Notably, the HeRo product line was acquired by Merit Medical from CryoLife earlier this year. Per management, the ‘Think HeRO Graft Training program’ in the HeRo platform is likely to provide substantial scope over the long run.
We are also optimistic about the long-term expected growth of the stock which is pegged at 12.5% and projected sales growth of 12.04%, which is a lot higher than the industry average of 5.3%.
Merit Medical Systems is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures. The company serves client hospitals worldwide with a domestic and international sales force totaling approximately 280 individuals.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock has an impressive one-year return of 77.4%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company delivered a positive earnings surprise of 27% last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock added 6.08% over the last one year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Merit Medical (MMSI) to Refinance Debt via Share Offering
South Jordan, UT-based Merit Medical Systems, Inc. (MMSI - Free Report) announced that it has commenced a follow on public offering of its common stock. The company expects to use the proceeds from the offering to repay debt under its existing credit facility.
Stock Performance
The price performance of Merit Medical has been encouraging of late. Over the last three months, the stock gained 17.55%, outshining the Zacks classified Medical/Dental-Supplies sub-industry’s gain of roughly 8.43%. Furthermore, the stock’s current return is higher than the S&P 500’s return of 5.32% over the same time frame.
Coming to the estimate revision trend of the stock, one analyst raised estimates in the last month compared to no movement in the opposite direction for the full year. This justifies the stock’s Zacks Rank #1 (Strong Buy).
Details of Public Offering
Coming back to the news, the company plans to offer $125.0 million of common stock for the follow on offering. However, the terms of the offering is yet to be decided. As of Dec 31, 2016, the company had cash and cash equivalents worth $19.2 million versus $4.2 million in the year-ago period. Long-term debt was $314.4 million versus $197.6 million in the year-ago period.
Going forward, we are upbeat about Merit Medical’s HeRo platform. The launch of the proprietary Super HeRO and HeRO Ally products also brought along significant opportunities for the company. Notably, the HeRo product line was acquired by Merit Medical from CryoLife earlier this year. Per management, the ‘Think HeRO Graft Training program’ in the HeRo platform is likely to provide substantial scope over the long run.
We are also optimistic about the long-term expected growth of the stock which is pegged at 12.5% and projected sales growth of 12.04%, which is a lot higher than the industry average of 5.3%.
Merit Medical Systems is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures. The company serves client hospitals worldwide with a domestic and international sales force totaling approximately 280 individuals.
Key Picks
Other well-placed stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Inogen sports a Zacks Rank #1 while Fluidigm and Avinger carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock has an impressive one-year return of 77.4%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company delivered a positive earnings surprise of 27% last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock added 6.08% over the last one year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>