What Happened?
Shares of dental products company Dentsply Sirona (NASDAQ:XRAY) jumped 5.2% in the afternoon session after an analyst at Barrington Research maintained an "Outperform" rating on the stock.
The analyst, Michael Petusky, kept the price target steady at $14.00. This positive outlook was supported by broader industry trends. A report highlighted that the market for dental anesthesia was expected to grow, fueled by a rising number of dental procedures. This suggested a healthy demand for the types of products and services that companies like Dentsply Sirona provided.
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What Is The Market Telling Us
Dentsply Sirona’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 13.4% on the news that it reported disappointing third-quarter results, highlighted by a significant earnings miss and a lowered forecast for the full year.
While revenue of $904 million declined 4.9% year-over-year, it narrowly beat analysts' expectations. The main concern for investors was profitability, as adjusted earnings per share came in at $0.37, missing Wall Street's consensus estimate of $0.45 and falling sharply from $0.50 in the same quarter last year. The company's operating margin was negative 24.1%, underscoring its struggles with costs. Compounding the negative news, management lowered its full-year adjusted EPS guidance to a midpoint of $1.60. The combination of missing current earnings estimates and reducing future expectations prompted the negative reaction from investors.
Dentsply Sirona is up 9.7% since the beginning of the year, but at $12.36 per share, it is still trading 39.1% below its 52-week high of $20.31 from January 2025. Investors who bought $1,000 worth of Dentsply Sirona’s shares 5 years ago would now be looking at an investment worth $213.32.
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