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St. Jude Medical’s Stock Prices Are on a Declining Trend

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St. Jude’s stock performance

St. Jude Medical (STJ) has recently seen a significant fall in its stock prices due to a number of events that have impacted investor sentiment. The company is trading at $78.60 as of September 15, 2016, and has a 50-day moving average of $81.20 and a 200-day moving average of $72.30. For a detailed discussion on the company’s fundamentals, check out our series St. Jude’s Valuation Story: Growth Drivers and Future Trends.

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As of September 15, 2016, St. Jude Medical stock was trading 61% above its 52-week low and 6.4% below its 52-week high. The stock has fallen ~2.2% since its last quarterly earnings released on July 20, 2016. On April 28, 2016, STJ stock closed at more than a 29% rise, triggered by the announcement of Abbott Laboratories’ (ABT) acquisition of St. Jude Medical.

On August 25, 2016, Muddy Waters, an investment advisory firm, made allegations regarding the cybersecurity risk of St. Jude Medical’s cardiac devices. The news triggered negative investor sentiment, and the stock witnessed a fall during the day. It closed at about 5% lower than the last day’s closing price. The stock has fallen about 4.2% since August 25, 2016.

But over the past year, STJ stock has risen ~13.2% and outperformed the market as represented by the S&P 500 Index over the same period.

Peer stock performance

As of September 16, 2016, St. Jude Medical’s peers Boston Scientific (BSX), Medtronic (MDT), and Edwards Lifesciences (EW) had returns of approximately 37%, 13.4%, and 66%, respectively, over the last year. The Health Care Select Sector SPDR ETF (XLV) returned around 0.5% over the same period. St. Jude Medical accounts for ~0.84% of XLV’s total holdings.

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