As a new filing with the Securities and Exchange Commission showed, Camber Capital Management surged its exposure to Orthofix International NV (NASDAQ:OFIX). The fund managed by Stephen Dubois reported ownership of around 1.20 million shares of the company, versus 118,700 shares disclosed in the latest 13F filing. Camber’s stake amasses 6.5% of Orthofix’s common stock and is passive by nature.
Orthofix International NV (NASDAQ:OFIX) is a small cap medical device company that is engaged in developing and producing devices for the repair and derivative solutions, operating primarily in the spine and orthopedic markets. The stock of the company jumped by 36% since the beginning of the year amid several interesting developments. An interesting thing is that stock gained ground and investors still bought its stock despite some issues that Orthofix International NV (NASDAQ:OFIX) had with its financial statements. A couple of months ago, the company announced the delay of its financial results for the second quarter after restating its results for the previous periods. Nevertheless, the preliminary net sales of the company amount to $101.6 million for the second quarter, which is higher than $98 million reported for the same period of 2013. However, the restatement still impacted the company’s historical sales that have been slightly reduced.
Nevertheless, with the overall growth of the orthopedic industry, Orthofix International NV (NASDAQ:OFIX) might still be considered as a good investment. The orthopedic market is expected to reach around $4.0 billion over the next several years, while the growth rate is expected to reach over 3%. In addition, the industry of medical devices grew 7% year-to-date, with further growth could be expected in the future.
This could explain why Mr. Dubois and several other investors bet on Orthofix International NV (NASDAQ:OFIX). Conan Laughlin‘s North Tide Capital upped its exposure to the company by 60% over the second quarter and reported 1.80 million shares in its latest 13F. Mitchell Blutt‘s Consonance Capital Management increased its position by 34% during the same period to 1.47 million shares.
Analysts also seem to like Orthofix, the company’s consensus rating being ‘Overweight’ and the average target price reaching around $38.00, which is significantly above the current price of the stock.
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