Orthofix International (OFIX) has disclosed a new risk, in the Debt & Financing category.
Orthofix International is exposed to a significant business risk due to its cash management strategy. As the company’s deposit accounts exceed FDIC insurance limits, the failure of a banking institution could result in substantial uninsured fund losses. This vulnerability was underscored by recent events involving Silicon Valley Bank and Signature Bank, though government intervention mitigated depositor losses. Orthofix International, however, has no guarantee of similar protections, which could jeopardize its liquidity and its ability to cover operating expenses.
Overall, Wall Street has a Hold consensus rating on OFIX stock based on 2 Holds.
To learn more about Orthofix International’s risk factors, click here.
