Brown Advisory Reduces Stake in Edwards Lifesciences by 10.5%

Brown Advisory Inc. has reduced its stake in Edwards Lifesciences Corporation by 10.5% during the second quarter of 2023. According to a report from Holdings Channel, the firm owned 7,312,494 shares of the medical research company after selling 861,339 shares in this period. As of the most recent filing with the Securities and Exchange Commission, Brown Advisory’s holdings in Edwards Lifesciences were valued at approximately $571,910,000.

Several institutional investors and hedge funds have adjusted their positions in Edwards Lifesciences. Notably, Brighton Jones LLC acquired a new stake worth $266,000 in the company’s shares during the fourth quarter. In the first quarter, Federated Hermes Inc. increased its investment by 128.2%, now holding 2,592 shares valued at $188,000 after acquiring an additional 1,456 shares. Other firms, including Costello Asset Management and Cary Street Partners Investment Advisory, also made significant changes, reflecting a trend among institutional investors in this stock. Overall, 79.46% of Edwards Lifesciences stock is owned by institutional investors and hedge funds.

Insider Transactions and Stock Performance

In related news, Vice President Daniel J. Lippis sold 1,020 shares of the company’s stock on November 10, 2023, at an average price of $82.55, totaling $84,201. Following this transaction, Lippis’s remaining shares are valued at approximately $1,816,265.10, indicating a 4.43% decrease in his ownership.

Chief Financial Officer Scott B. Ullem also sold 13,000 shares on the same day for $1,080,040, which resulted in a 24.58% reduction in his position, leaving him with 39,898 shares worth about $3,314,725.84. Corporate insiders collectively own 1.29% of the company’s stock.

Edwards Lifesciences released its quarterly earnings results on October 30, 2023, reporting earnings per share (EPS) of $0.67, surpassing analysts’ expectations of $0.59 by $0.08. The company generated revenue of $1.55 billion, exceeding the consensus estimate of $1.49 billion. The firm experienced a net margin of 23.25% and a return on equity of 14.70%. Revenue increased by 14.7% year-over-year, consistent with last year’s EPS of $0.67.

Analysts’ Ratings and Future Guidance

Looking ahead, Edwards Lifesciences has provided fiscal year 2025 guidance of $2.560 – $2.620 EPS, with fourth quarter guidance set at $0.580 – $0.640 EPS. Analysts project an EPS of $2.45 for the current fiscal year.

Recent research reports reflect a positive outlook for the stock. Robert W. Baird set a price target of $83.00, while Canaccord Genuity Group reissued a “hold” rating with an upgraded target of $84.00. Barclays reaffirmed an “overweight” rating with a revised price objective of $99.00. Other firms, including Truist Financial and The Goldman Sachs Group, have also adjusted their price targets upwards.

Currently, analysts have rated Edwards Lifesciences with three “Strong Buy” ratings, fourteen “Buy” ratings, ten “Hold” ratings, and one “Sell” rating. According to MarketBeat.com, the stock holds a consensus rating of “Moderate Buy” with an average price target of $91.52.

Edwards Lifesciences Corporation specializes in products and technologies for structural heart disease and critical care monitoring, operating across the United States, Europe, Japan, and other international markets. The company provides transcatheter heart valve replacement and repair products, focusing on minimally invasive procedures under the Edwards SAPIEN brand.