Boston Partners has significantly reduced its holdings in Pediatrix Medical Group, Inc. (NYSE: MD), selling 562,271 shares during the second quarter of 2023. This move represents a 28.4% decrease in the fund’s investment, according to its latest Form 13F filing with the Securities and Exchange Commission (SEC). After the sale, Boston Partners retains approximately 1,419,618 shares of the company, valued at around $19.9 million, which constitutes about 1.63% of Pediatrix Medical Group.
Other institutional investors have also made notable adjustments to their holdings in Pediatrix Medical Group. LPL Financial LLC increased its stake by 55.5% in the first quarter, acquiring an additional 51,490 shares for a total of 144,318 shares worth approximately $2.1 million. Similarly, Mackenzie Financial Corp boosted its position by 82.7%, now owning 38,399 shares valued at $556,000 after purchasing 17,376 shares.
XTX Topco Ltd made a substantial addition to its holdings, increasing its stake by 246.5% to own 44,752 shares, valued at $648,000. Natixis Advisors LLC grew its position by 8.1%, acquiring an additional 1,435 shares, and Empirical Financial Services LLC established a new stake valued at $159,000. Overall, institutional investors now control 97.71% of Pediatrix Medical Group’s stock.
Insider Transactions and Stock Performance
Recent insider trading activity includes sales by two directors. On November 17, 2023, Director Michael A. Rucker sold 10,478 shares at an average price of $23.00, totaling $240,994. Following this transaction, Rucker holds 59,101 shares, valued at approximately $1.36 million, reflecting a 15.06% decrease in ownership.
Another director, Laura A. Linynsky, sold 10,000 shares on November 6, 2023, at an average price of $21.65, resulting in $216,500 in sales. Linynsky now owns 32,232 shares, valued at about $697,823, representing a 23.68% reduction in her stake. Corporate insiders currently hold 0.90% of the company’s stock.
The stock performance of Pediatrix Medical Group has shown resilience. On November 3, 2023, the company reported earnings of $0.67 per share (EPS) for the quarter, surpassing analysts’ expectations of $0.46 by $0.21. The firm generated revenues of $492.88 million, exceeding the forecast of $476.45 million. Despite these positive results, revenue fell by 3.6% from the previous year, when it reported an EPS of $0.44.
As of the market opening on November 3, 2023, Pediatrix Medical Group shares traded at $23.97, with a market capitalization of $2.06 billion. The company has a price-to-earnings ratio of 18.58 and a beta of 1.20, indicating a moderate level of volatility compared to the market. The stock has seen a 12-month low of $11.84 and a high of $24.99.
Analysts’ Perspectives and Future Outlook
Market analysts have been actively reassessing their ratings for Pediatrix Medical Group. On October 4, 2023, Wall Street Zen upgraded the company from a “buy” to a “strong-buy” rating. Truist Financial raised its target price from $17.00 to $24.00, maintaining a “hold” rating as of November 10, 2023. Zacks Research has also upgraded the stock to “strong-buy” status, while Weiss Ratings has reiterated a “hold (C+)” rating.
UBS Group adjusted its price objective on Pediatrix Medical Group from $16.50 to $23.00, designating a “neutral” rating. Currently, one analyst rates the stock as a “strong buy,” one as a “buy,” and four others have issued a “hold” rating. According to MarketBeat, the average rating stands at a “moderate buy” with a consensus price target of $21.00.
Pediatrix Medical Group, Inc. specializes in providing newborn, maternal-fetal, and pediatric subspecialty care services across the United States. The firm offers critical neonatal care for prematurely born infants or those with complications, delivered by specialized pediatric clinicians.
As institutional investors reposition their stakes and analysts adjust their ratings, the coming months will be pivotal for Pediatrix Medical Group as it navigates both market expectations and its own operational challenges.
