Entellus Medical Agrees To Be Acquired By Stryker In $662 Mln Deal

Doris Richards
December 8, 2017

ValuEngine lowered Stryker from a "buy" rating to a "hold" rating in a research report on Friday, December 1st. Piper Jaffray Companies reissued an "overweight" rating and set a $148.00 price objective on shares of Stryker in a report on Thursday, August 24th.

Entellus Medical, Inc. (NASDAQ:ENTL)'s market cap, the total dollar value of all of their outstanding shares, is 399.93m. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and thirteen have given a buy rating to the company's stock.

In July, Entellus said it acquired Spirox Inc. of Redwood City, Calif. for $81 million, including $25 million in cash and the rest in stock. Stryker presently has an average rating of "Hold" and an average price target of $152.10.

Stryker Corporation (SYK) traded down $0.27 during trading hours on Thursday, reaching $151.76. Current price levels see the company 47.91% off the 20-day simple moving average. The medical technology company reported $1.52 earnings per share for the quarter, beating the Zacks' consensus estimate of $1.50 by $0.02.


Stryker would pay $24 per Entellus share, a premium of about 50 percent to Entellus's Wednesday close. The company generated revenue of $23 million in the third quarter. Over the past month the firm's stock is -27.86%, -23.48% for the last quarter, -6.91% for the past six-months and -6.13% for the previous year. Stryker's quarterly revenue was up 6.1% on a year-over-year basis. analysts anticipate that Stryker Corporation will post 6.47 earnings per share for the current year.

In related news, insider Lonny J. Carpenter sold 5,000 shares of the stock in a transaction that occurred on Friday, November 3rd. The company's stock had a trading volume of 1,090,500 shares, compared to its average volume of 1,181,132. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Analysts have also given a consensus recommendation on the stock of 2.40. While the stock price moved along with the volume change, shares are touching $10.07. The disclosure for this purchase can be found here. Following the sale, the insider now owns 83,207 shares in the company, valued at $12,925,375.38. Hedge funds have recently modified their holdings of the company. Toronto Dominion Bank increased its holdings in shares of Stryker by 25.8% in the second quarter. San Francisco Sentry Investment Group CA now owns 1,005 shares of the medical technology company's stock valued at $143,000 after acquiring an additional 325 shares in the last quarter. Parametric Portfolio Associates LLC raised its stake in Entellus Medical by 5.6% in the first quarter. Finally, James Investment Research Inc. bought a new stake in Stryker during the 2nd quarter worth about $155,000. Toronto Dominion Bank now owns 105,403 shares of the medical technology company's stock valued at $14,625,000 after purchasing an additional 21,585 shares during the period.

"The combination of Stryker's established commitment to making health care better and Entellus' innovative products within the ENT [ear nose and throat] segment will continue to provide our customers the tools they need for cost-effective solutions", Entellus chief executive Robert S. White said in the deal announcement.

Plymouth, Minnesota-based Entellus designs minimally invasive products for the treatment of various ENT diseases.

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