Shares in the pediatric orthopedic device specialist OrthoPediatrics gained a vote of confidence from the analyst community. The firm Wall Street Zen revised its rating on the stock upward from “Sell” to “Hold.” This shift follows the company’s recent financial report and contributed to a positive trading session, with the equity closing at $18.17 on Thursday, marking a 1.34% gain.
Financial Results Fuel Positive Sentiment
The catalyst for the improved outlook was the robust quarterly report released in October. For the third quarter of 2025, OrthoPediatrics posted a 12% year-over-year revenue increase to $61.2 million. A key highlight was the performance of adjusted EBITDA, which surged 56% to $6.2 million. The company also reported an expansion in its gross margin, which reached 74%. In light of these figures, management reaffirmed its full-year guidance for adjusted EBITDA, projecting a range of $15.0 million to $17.0 million. The revenue forecast was slightly adjusted to between $233.5 million and $234.5 million.
Should investors sell immediately? Or is it worth buying OrthoPediatrics?
Institutional Backing and Market Consensus
The long-term conviction in OrthoPediatrics is underscored by substantial institutional ownership, with these investors holding 69.05% of the company’s shares. The broader analyst perspective, based on the consensus of nine market researchers, currently stands at “Moderate Buy.” This rating is supported by seven “Buy” recommendations. The average price target among these analysts is $24.00, suggesting a potential upside of more than 30% from the last closing price.
It is noteworthy that despite this operational progress, OrthoPediatrics continues to report a negative return on equity (ROE) of -12.67% on a trailing twelve-month basis. Such a metric is not atypical for growth-stage medical technology firms investing heavily in expansion. The company’s strategic direction will face its next significant test with the release of its final audited results for the full year 2025.
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