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Merit Medical (MMSI) Closes 5.2M Follow-On Share Offering
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Leading manufacturer and marketer of proprietary disposable devices, Merit Medical Systems, Inc. (MMSI - Free Report) announced that it has closed its follow-on public offering of 5.2 million shares of common stock at $28.25 per share.
The price performance of Merit Medical has lately been encouraging. Over the last six months, the stock rallied 17.94%, outshining the Zacks classified Medical/Dental-Supplies sub-industry’s gain of roughly 5.49%. Furthermore, the stock’s return is higher than the S&P 500’s return of 9.75% over the same time frame.
If we take a look at the estimate revision trend of the stock, one analyst raised estimates in the last two months for the full year, compared with no movement in the opposite direction. This justifies the stock’s Zacks Rank #1 (Strong Buy).
Coming back to the news, the follow-on offering generated net proceeds of approximately $136.5 million. The company expects to use the net proceeds to repay debt under its existing credit facility. As of Dec 31, 2016, the company had cash and cash equivalents worth $19.2 million versus $4.2 million in the prior year. Long-term debt was $314.4 million versus $197.6 million a year ago.
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%.
South Jordan, UT-based 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 registered an impressive one-year return of 82%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company has a projected EPS growth rate of 39.53% for the current fiscal.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% in the last reported quarter.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Merit Medical (MMSI) Closes 5.2M Follow-On Share Offering
Leading manufacturer and marketer of proprietary disposable devices, Merit Medical Systems, Inc. (MMSI - Free Report) announced that it has closed its follow-on public offering of 5.2 million shares of common stock at $28.25 per share.
The price performance of Merit Medical has lately been encouraging. Over the last six months, the stock rallied 17.94%, outshining the Zacks classified Medical/Dental-Supplies sub-industry’s gain of roughly 5.49%. Furthermore, the stock’s return is higher than the S&P 500’s return of 9.75% over the same time frame.
If we take a look at the estimate revision trend of the stock, one analyst raised estimates in the last two months for the full year, compared with no movement in the opposite direction. This justifies the stock’s Zacks Rank #1 (Strong Buy).
Coming back to the news, the follow-on offering generated net proceeds of approximately $136.5 million. The company expects to use the net proceeds to repay debt under its existing credit facility. As of Dec 31, 2016, the company had cash and cash equivalents worth $19.2 million versus $4.2 million in the prior year. Long-term debt was $314.4 million versus $197.6 million a year ago.
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%.
South Jordan, UT-based 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.
Other 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 registered an impressive one-year return of 82%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company has a projected EPS growth rate of 39.53% for the current fiscal.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% in the last reported quarter.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>