uploads/2016/06/Part-4-Graph-06-09-16-1.png

How Have IHI’s Mid-Capitalization Stocks Performed?

By

Updated

Performance of IHI’s mid-capitalization holdings

On June 9, 2016, the top performer within the mid-capitalization space of the iShares U.S. Medical Devices ETF (IHI) was Idexx Laboratories (IDXX), which rose by 1.5%. The stock rose on the news of its launch of a new Rapid Visual Pregnancy Test for cattle.

The stock closed at $90.25 on June 9. It was trading above its 20-day moving average price. The stock has risen by 23.8% on a year-to-date basis.

IHI’s mid-capitalization underperformers include Bruker (BRKR), Globus Medical (GMED), and Nevro (NVRO). Nevro’s stock fell on profit-booking on June 9. The stock had risen on June 8 on news of its pricing of a $150 million public offer of convertible senior notes.

In a press release, Nevro announced “the pricing of its public offering of $150 million aggregate principal amount of 1.75% convertible senior notes due 2021 registered under the Securities Act of 1933, as amended.”

The release also said, “Nevro granted the underwriters a 30-day option to purchase up to an additional $22.5 million aggregate principal amount of such notes to cover over-allotments, if any.”

In another press release, Nevro announced that “its management will be presenting at the JMP Securities Life Sciences Conference on Tuesday, June 21, 2016, in New York City.”

Article continues below advertisement

Nevro closed at $75.72 on June 9 and was trading above its 20-day moving average. The stock has risen by 12.2% on a year-to-date basis. Nevro has a relative strength index of 73, indicating that the stock has moved temporarily into an overbought situation. However, 26.7% of its total outstanding shares are in short positions.

Nevro has a book value of $8.08 per share. At its current price, the stock is trading at a price-to-book value of ~9.40x. Nevro has a weight of ~0.4% in IHI’s portfolio.

Analysts’ estimates and recommendations

Analysts estimate Nevro’s 12-month target price to be $79.80. Six analysts recommend “buys” on the stock, one analyst recommends a “hold” on the stock, and no analysts recommend “sells” the stock.

Advertisement

More From Market Realist