Boston Scientific Experiences Surge in Call Options Trading

Boston Scientific Corporation (NYSE:BSX) witnessed a significant uptick in options trading on Wednesday, with stock traders purchasing a total of 22,241 call options. This figure represents an increase of approximately 54% compared to the average daily volume of 14,417 call options. The spike in trading activity has drawn attention from analysts and investors alike.

Analysts Adjust Price Targets

In light of the heightened trading volume, several analysts have recently revised their price targets for Boston Scientific shares. On July 24, 2023, Wells Fargo & Company raised its price target from $118.00 to $124.00 and assigned the stock an “overweight” rating. Similarly, Goldman Sachs Group reiterated a “buy” rating, also setting a target price of $124.00 in a report released on the same day.

Other notable adjustments include Truist Financial, which increased its target from $125.00 to $129.00, and UBS Group, which raised its target from $130.00 to $135.00, both maintaining a “buy” rating. As of now, two analysts have rated the stock as a Strong Buy, while twenty-three have issued a Buy rating and two have assigned a Hold rating. According to data from MarketBeat, Boston Scientific currently holds an average rating of “Buy” with a consensus target price of $121.71.

Insider Transactions Raise Questions

In addition to the trading activity, recent insider transactions have attracted scrutiny. On July 25, 2023, Director Edward J. Ludwig sold 4,000 shares at an average price of $106.03, totaling $424,120.00. Following this sale, Ludwig’s holdings decreased by 17.79%, leaving him with 18,479 shares valued at approximately $1,959,328.37.

Additionally, Executive Vice President Arthur C. Butcher sold 17,313 shares on August 1, 2023, for a total value of $1,811,459.19. This sale represented a 42.32% decrease in Butcher’s position, reducing his holdings to 23,600 shares valued at around $2,469,268. In total, insiders sold 174,214 shares worth $17,972,457 over the past 90 days, with insiders now holding 0.50% of the stock.

Institutional Investors Show Interest

Institutional investors have also been active in modifying their positions in Boston Scientific. Notable transactions include Steph & Co. and Financial Consulate Inc., both acquiring new positions in the company during the third quarter, each valued at approximately $25,000. Other firms such as 1248 Management LLC and FWL Investment Management LLC also reported similar investments.

Currently, institutional investors and hedge funds own approximately 89.07% of Boston Scientific’s stock, indicating strong support from large investors.

Boston Scientific’s Financial Performance

As of October 22, 2023, shares of Boston Scientific opened at $103.66. The company has a market capitalization of $153.60 billion and a price-to-earnings (PE) ratio of 61.70. It reported a net margin of 13.55% and a return on equity of 19.21% with revenue reaching $5.07 billion for the quarter, exceeding analysts’ estimates of $4.97 billion.

The firm reported earnings of $0.75 per share, surpassing consensus estimates by $0.04. This represents a 20.3% increase in revenue compared to the same quarter last year, when the company earned $0.63 per share. Looking ahead, Boston Scientific has set its fiscal year 2025 guidance at $3.020 – $3.040 earnings per share, with fourth quarter guidance at $0.770 – $0.790.

Boston Scientific Corporation is a global leader in developing, manufacturing, and marketing medical devices across various interventional medical specialties. The company operates through two segments, MedSurg and Cardiovascular, providing a wide array of devices used in diagnosing and treating various medical conditions.

As the company continues to navigate the market, investors will be closely watching both trading activity and insider transactions for further insights into Boston Scientific’s future performance.