Reasons Boston Scientific Corporation (BSX) Deserves a Closer Look

Analysts at UBS, assumed coverage of Boston Scientific Corporation (NYSE:BSX) with Buy recommendation, according to their opinion released on November 28. Analysts at Morgan Stanley are sticking to their Overweight recommendation. However, on October 02, they lifted target price for these shares to $48 from $38. Analysts at Morgan Stanley, made their first call for the stock with a Overweight rating, according to a research note that dated back to October 02.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Boston Scientific Corporation (NYSE:BSX)’s prospects. The earliest insider trade took place on 01/09/2019. Ralls-Morrison Desiree parted with a total of 4.05 thousand shares of company at average share price of $36. The total for the sales was set at $145.69 thousand. After this transaction, the SVP, GC and Corp Secretary account balance stood at 4.63 thousand shares. The stock lost -1.22 percent since that insider sale. On 01/09/2019, Pierce David A, EVP,Pres MedSurg, sold 10.32 thousand shares at a price per share of $35.67. This removed 368.08 thousand shares from the insider’s fortune and the stock saw a -0.31 percent retreat in value since the news became public. This transaction left 24.2 thousand shares in the EVP,Pres MedSurg account. On 01/08/2019, EVP,Pres MedSurg Pierce David A performed a sale transaction worth $175 thousand. This sale at $35 each has eliminated 5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 1.6 percent increase since the transaction was reported. The insider now is left with 34.52 thousand shares remaining in the account. Ballinger Kevin J., who performs the EVP & Pres, Interven Cardio job, sold 14.74 thousand shares for $496 thousand. The disposal occurred on 01/03/2019 was priced at $33.65 per share. The share price soared 5.68 percent since the reporting date. Ballinger Kevin J. now left with a stake of 69.62 thousand BSX stock worth $2.48 million after the insider selling.

Boston Scientific Corporation (BSX) is expected to jump by 18.48 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $46-month high price target. This represents a whopping 29.36 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $42, which represents a return potential of 18.11 percent when compared to the closing price of the stock of $35.56 on Friday, January 11. The lowest price target for the stock is $26 — slightly more than -26.88 percent from BSX’s current share price.

The shares are currently floating around the first support level of $35.24. Below this, the next support is placed in the zone of $34.93. Till the time, the BSX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.06 on daily chart, which may remain a cause for concern. If the price breaks below $34.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $35.82 mark may result into a pull-back move towards $36.09 level.

BSX shares dropped -0.39 points or -1.08 percent on Friday to $35.56 with a light trade volume of 5.495 million shares. After opening the session at $35.64, the shares went as high as $35.77 and as low as $35.19, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $49.8 billion and now has 1.4 billion shares outstanding. Boston Scientific Corporation (BSX) stock has lost -2.74 percent of market value in 21 trading days.

BSX stock has a trailing 3-year beta of 0.82, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.09 a share in the trailing twelve months. The stock’s value has surged 0.62 percent year to date (YTD) against a rise of 29.22 percent in 12 month’s time. The company’s shares still trade -9.84 percent away from its 1-year high of $39.44 and 42.01 percent up from 52-week low of $25.04. The average consensus rating on the company is 1.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Boston Scientific Corporation (BSX) are trading at a P/E ratio of 32.33 times earnings reported for the past 12 months. The industry BSX operates in has an average P/E of 52.98. Its P/E ratio went as low as 35.78X and as high as 85.85 over the 5-year span. Further, it is sporting a 5.14 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.09. 71.2 percent is the gross profit margin for Boston Scientific Corporation and operating margin sits at 15.6 percent. Along with this, the net profit margin is 6.9 percent.

BSX will be showing off its Q4 earnings on February 06. Analysts are forecasting revenue to climb 6.3 percent to $2.56B in the next fiscal quarter, while earnings are seen soaring by nearly 8.82 percent to $0.37 per share. History has shown that shares in Boston Scientific Corporation have gone up on 18 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.35 per share, better than the $0.34, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.39B, worse than the $2.4B analysts expected. Earnings are estimated to increase by 175 percent this year, 13.37 percent next year and continue to increase by 11.15 percent annually for the next 5 years.